Delaware Alcoholic Beverage Control Commission v. B-F Spirits, Ltd.

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 in Delaware alcoholic beverage products of Southern Comfort Corporation (Southern Comfort). In 1979 Brown-Forman Distillers Corporation (Brown-Forman) acquired…