The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)


STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 5573

September 11, 1979

BOTTLES AND BOTTLING:

Regional redemption centers for returnable containers

A distributor may not refuse to redeem returnable containers from agents of a dealer when such containers are of the same kind, size and brand as sold by the distributor.

Honorable Stephen V. Monsma

State Senator

The Capitol

Lansing, Michigan

Honorable Perry Bullard

State Representative

The Capitol

Lansing, Michigan

You have asked whether, under the provisions of the Initiated Law of 1976; MCLA 445.571; MSA 18.1206(11), wholesale distributors of beverages may refuse to redeem returnable containers from agents designated by a dealer or from a regional redemption center acting as an agent for a dealer.

Section 2(6) of the 1976 Initiated Law; MCLA 445.572; MSA 18.1206(12) states:

'A distributor shall not refuse to accept from a dealer an empty returnable container of any kind, size, and brand sold by that distributor, nor refuse to pay to the dealer its full refund value in cash, except as provided in subsection (7).'

'Dealer' and 'distributor' are defined in Section 1; MCLA 445.571; MSA 18.1206(11), as follows:

'Sec. 1. As used in this act:

(f) 'Dealer' means a person who sells or offers for sale to consumers within this state a beverage in a beverage container, including an operator of a vending machine containing a beverage in a beverage container.

(h) 'Distributor' means a person who sells beverages in beverage containers to a dealer within this state, and includes a manufacturer who engages in such sales.'

The law specifically provides for establishment of regional redemption centers in Section 2, supra, which states:

'(2) A dealer who regularly sells beverages for consumption off the dealer's premises shall provide on the premises, or within 100 yards of the premises on which the dealer sells or offers for sale a beverage in a returnable container, a convenient means whereby the containers of any kind, size, and brand sold or offered for sale by the dealer may be returned by, and the deposit refunded in cash to, a person whether or not the person is the original customer of that dealer, and whether or not the container was sold by that dealer.

(3) Regional centers for redemption of returnable containers may be established in addition to, but not as substitutes for means for refund of deposits in accordance with subsection (2).' (Emphasis added)

Taken together, these sections indicate that a distributor is required to pay the refund value in cash to a dealer for containers which are of the same kind, size and brand as that which are sold by the distributor. Under the principles of agency law, Burton v Burton, 332 Mich 326; 51 NW2d 297 (1952); Link, Petter & Co v Pollie, 241 Mich 356; 217 NW 60 (1928), a dealer would not personally have to obtain the refund, but could authorize someone to act as his agent for that purpose.

Therefore, it is my opinion that a distributor may not refuse to redeem returnable containers from agents of a dealer when such containers are of the same kind, size and brand as sold by the distributor.

Frank J. Kelley

Attorney General