Stein Distributing Company, Inc. v. Department of the Treasury Bureau of Alcohol, Tobacco & Firearms

FACTS

Stein Distributing Co., Inc. (Stein) is the largest wholesaler of beer and wine in the Boise, Idaho area. Stein and other wholesalers routinely prepared schematic diagrams for its retail customers, diagramming proposed product arrangements in retailers’ beer and wine sections. In addition, Stein provided labor to arrange or “reset” the beer and wine sections in accordance with the schematic diagrams. In the process of providing these services, Stein would often move the wine products of its competitors, as well as its own products.

In August, 1979, an inspector of the Bureau of Alcohol, Tobacco and Firearms (the Bureau) told Stein’s president that the services it provided to retailers constituted a violation of the “tied house” provision of the Federal Alcohol Administration Act (the Act), 27 U.S.C. § 205 (b)(3) (1982). In January, 1981, Stein was again informed that the Bureau considered its actions to be a violation of federal law. On October 28, 1982, the Bureau issued an order to show cause, charging violations by Stein of the tied house provision and implementing regulations. The Bureau alleged that Stein violated the Act by providing “things of value” to retailers…