Legal Question in Business Law in California

Many grocery stores claim it is against the Dept. of Alcoholic Beverage Control to refund alcoholic beverages even with a receipt. Costco posts a sign that says ABC forbids retailers from advertising a "Satisfaction Guarantee" (meaning you get a refund if you're not satisfied) in regards to alcoholic beverages. Many stores also claim it is an ABC requirement that all alcoholic beverages be bagged, with the exception of cases (boxes) of beer. I skimmed through the ABC Act but could not find any of this. Is the first "law" really or a law, or is this a way for retailers to avoid refunding party overbuys? Also, is the bagging law really true?


Asked on 1/04/10, 11:52 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I do believe the grocery stores are correct in claiming that they cannot accept returns for a refund. This is because such a transaction is included in the law's definition of a "sale." Even though returning a product probably doesn't seem to the average consumer like selling it back to the retailer, that's exactly what is happening legally, and such sales are prohibited. See, for example, Business & Profession Code section 23025, defining "sale." It speficially exempts a sale from a licensed retailer back to a licensed wholesaler. In so doing, it makes particularly clear that a sale from an unlicensed consumer back to the licensed retailer is not allowed.

Haven't found out about the bagging thing yet, will post another answer if I do, but is sounds like something that might be in the ABCB rules even if not found in a statute.

A lot of stuff like this isn't statutory; instead, it's in an agency rule promulgated pursuant to a statute allowing or requiring the agency to make rules to carry out the intent of the statute.

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Answered on 1/09/10, 1:27 pm


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