436.1903b Payment by means dishonored by financial institution; violation of act; administrative fee.

Sec. 903b.

    (1) A retailer violates this act if the retailer or the retailer's clerk, servant, agent, or employee makes a payment to a wholesaler by any means that has been dishonored by a financial institution for any reason.

    (2) A wholesaler shall require a retailer that has made a payment to the wholesaler that has been dishonored by a financial institution to pay the wholesaler an administrative fee as follows:

    (a) For the first dishonored payment, $50.00.

    (b) For a second dishonored payment within 12 months of the first dishonored payment, $100.00.

    (c) For a third dishonored payment within 12 months of the first dishonored payment, $150.00.

    (d) For a fourth dishonored payment within 12 months of the first dishonored payment, $200.00.

    (e) For a fifth or any subsequent dishonored payment within 12 months of the first dishonored payment, $250.00.