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DEL. ALCOHOLIC BEV. CONTROL v. B-F SPIRITS

429 A.2d 975 (1981)

DELAWARE ALCOHOLIC BEVERAGE CONTROL COMMISSION and Blue Hen Beverages, Ltd., Appellees-Appellants, v. B-F SPIRITS, LTD., an unincorporated division of Brown-Forman Distillers Corporation, and Brown-Forman Distillers Corporation, Appellants-Appellees. DELAWARE ALCOHOLIC BEVERAGE CONTROL COMMISSION, Appellee-Appellant, v. STATE DISTRIBUTORS, INC., Intervenor-Appellant, v. CARLTON SALES COMPANY, Appellant-Appellee.

Supreme Court of Delaware.

Decided April 22, 1981.

Attorney(s) appearing for the Case

Robert W. Willard, Deputy Atty. Gen. (argued), Wilmington, for Delaware Alcoholic Beverage Control Commission.

John E. Babiarz, Jr., and Francis S. Babiarz (argued), of Morris, Nichols, Arsht & Tunnell, Wilmington, for Blue Hen Beverages, Ltd., and State Distributors, Inc.

Michael D. Goldman and Somers S. Price, Jr. (argued), of Potter, Anderson & Corroon, Wilmington, for B-F Spirits, Ltd., and Brown-Forman Distillers Corp.

Joseph A. Hurley (argued), of Paul & Hurley, Wilmington, for Carlton Sales Co.

Before DUFFY, QUILLEN and HORSEY, JJ.

DUFFY, Justice:

The issue determined in these appeals involves an arguable conflict between the Delaware Franchise Security Law and a Rule of the Delaware Alcoholic Beverage Control Commission governing the transfer of a franchise to import alcoholic liquor. We hold that the Statute and the Rule are compatible but that the Rule was not properly applied in this case.

I

A.

For many years Blue Hen Beverages, Ltd. (Blue Hen), had distributed...

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