As used in subchapters 1, 2, and 4, the following definitions apply:

(1) "Adult" means a person 21 years of age or older.

(2) "Bailment" means the product at the department's Helena warehouse that is owned by the vendor. All product shipped into the Helena warehouse will be received as bailment and will remain until depleted or redelivered to the vendor.

(3) "Bailment warehouse" means the designated building in Helena where product is received, stored, and shipped from.

(4) "Base case cost" as it applies to liquor and fortified wine means the supplier's quoted price and the department's current freight rate to state agency liquor stores.

(5) "Beyond vendor's control" means that a vendor has considered all mitigated measures.

(6) "Broker" means a person, partnership, association, or corporation under contract to a vendor to arrange for the employment and registration of the vendor's representatives as provided by these rules and/or to supervise those representatives.

(7) "Consumer advertising specialties" are items that are designed to be carried away by the consumer, such material includes, but is not limited to: trading stamps, nonalcoholic mixers, pouring racks, ash trays, bottle or can openers, cork screws, shopping bags, matches, printed recipes, pamphlets, cards, leaflets, blotters, post cards, pencils, shirts, caps, and visors.

(8) "Discontinued product" means a product that is no longer available to the state.

(9) "Erratic sales" means sales having no fixed or regular course; lacking consistency, regularity, or uniformity.

(10) "Employ" means to engage the services of a person either through direct supervision and control of the person or through a contract for services with the person.

(11) "List" means to establish a product's availability according to one of the classifications in ARM 42.11.405.

(12) "Point of sale advertising materials" are items designed to be used within a retail establishment to attract consumer attention to the product. Such material includes, but are not limited to: posters, placards, designs, inside signs (electric, mechanical, or otherwise), window decorations, trays, coasters, mats, menu cards, meal checks, paper napkins, foam scrapers, back bar mats, thermometers, clocks, calendars, and alcoholic beverage lists or menus.

(13) "Posted price" as it applies to liquor and fortified wine, means the wholesale price of liquor and fortified wine sold to persons holding a liquor license issued by the department, and an excise tax and license tax as provided in Title 16, chapter 1, part 4, MCA, the total of which is rounded up to the next nickel increment.

(14) "Primary packaging" means the container that directly holds the alcoholic beverage. Examples of primary packaging include, but are not limited to, aluminum cans, glass bottles, and a box containing a plastic bladder or other soft flexible container.

(15) "Product" means a liquor item, identified by a unique identification number or stock-keeping unit.

(16) "Promote" means to:

(a) solicit product sales at state agency liquor stores, licensees, special events, and/or the general public;

(b) contribute to the growth of products through the state agency liquor stores, licensees, special events, and/or the general public;

(c) disseminate product information to state agency liquor stores, licensees, special events, and/or the general public; and

(d) distribute product samples in accordance with ARM 42.11.243.

(17) "Regular product" means a product that has sold 50 or more cases in the 12-month period leading up to the department's biannual review if:

(a) product sales are not a result of closeout, overstock, or erratic sales;

(b) product is available year-round; and

(c) product has been in the state for at least six months prior to the review.

(18) "Representative" means a person employed and registered, as provided by these rules, by a vendor to promote the sale of the vendor's product in Montana.

(19) "Sample" means a liquor product furnished by a liquor vendor to registered brokers and representatives for the purpose of promoting the product to licensed all-beverage retailers or agency liquor store agents.

(20) "Seasonal product" means a product that is only available by the manufacturer during certain times of the year.

(21) "Special order product" means a product that does not meet the criteria to be classified as a regular product.

(22) "Vendor" means a person, partnership, association, corporation, or other business entity selling liquor to the department and to whom the department makes payment for liquor depleted from the state liquor warehouse.

(23) "Vendor's permit" means a permit issued to a vendor entitling the vendor to promote the sale of its products in Montana through representatives registered in accordance with these rules.