OAG 81-182 | KOGC

Request By:

Hon. David M. Andrews
Spiegel & Andrews
183 N. Upper Street
Lexington, Kentucky 40507

Opinion

Opinion By: Steven L. Beshear, Attorney General; By: Richard O. Wyatt, Assistant Attorney General

Please reference your letter to this office dated April 2, 1981, regarding the participation of a liquor and malt beverages retailer (licensed under KRS Chapter 243) in a barter club which exchanges products or services for club "credits" or for other products or services.

1. Sales of distilled spirits and of wine cannot be made for credit except by specifically described establishments which may accept national or bank credit cards. KRS 244.300. The barter club described in your letter would constitute a prohibited credit arrangement for the sale of distilled spirits and of wine.

2. Sales of malt beverages may, however, be sold on credit terms. The sale must be for "full monetary consideration," but need not be for cash. KRS 244.050;

Roppel v. Shearer, Ky., 321 S.W.2d 36 at 37 (1959).

Enclosed for your further information are two previous opinions issued by this office dealing with similar issues (OAG 61-905, OAG 75-145).

We trust this information is helpful.

LLM Summary

In OAG 81-182, the Attorney General, Steven L. Beshear, responded to an inquiry about the participation of a liquor and malt beverages retailer in a barter club. The opinion clarifies that sales of distilled spirits and wine cannot be made for credit except by establishments that may accept national or bank credit cards, as per KRS 244.300. However, sales of malt beverages may be sold on credit terms, provided the sale is for 'full monetary consideration' but not necessarily for cash, referencing KRS 244.050 and Roppel v. Shearer. The opinion also references two previous opinions, OAG 61-905 and OAG 75-145, for further information on similar issues.

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