Tennessee § 57-6-108 - Cash sales only to retailers.

§ 57-6-108. Cash sales only to retailers.

In order to effectively collect the tax levied by this part all sales of beer by wholesalers to retailers or any other persons, except sales to duly licensed wholesalers and sales within military installations as set out in § 57-6-111 , shall be for cash only. The intent of this section is that wholesale sale of beer and delivery and payment therefor shall be a simultaneous transaction, and any maneuver, device or method of extending credit is expressly prohibited. Acts 1953, ch. 76, § 10 (Williams, § 1051.27); T.C.A. (orig. ed.), § 57-310. NOTES TO DECISIONS 1. Extension of Credit. 2. Legislative Intent. 1. Extension of Credit. Note executed by retail beer dealer and payable to wholesale beer dealer whereby wholesaler extended credit to retailer was for an illegal consideration and unenforceable as being in violation of this section. Mascari v. Raines, 220 Tenn. 234, 415 S.W.2d 874, 1967 Tenn. LEXIS 403 (1967). 2. Legislative Intent. The intent of the legislature in passing the Wholesale Beer Tax Act was not only to effectively collect the tax levied but also to regulate and prohibit certain trade practices such as the wholesale sale of beer on credit to retailers or any other persons not excepted by the statute. Mascari v. Raines, 220 Tenn. 234, 415 S.W.2d 874, 1967 Tenn. LEXIS 403 (1967).