Regulation 2 Interpretation

In these Regulations—

• “the Act” means the Tied Pubs (Scotland) Act 2021,

• “code” means the Scottish Pubs Code as set out in these Regulations,

• “gaming machine” has the meaning given in section 235 of the Gambling Act 2005^f1,

• “group undertaking” has the meaning given by section 1161 of the Companies Act 2006^f2 (and related terms on which that definition relies are to be construed accordingly),

• “landlord” includes any person who is a group undertaking in relation to the person who is actually the landlord,

• “lease” has the meaning given in paragraph 5(4) of schedule 1 (the Scottish Pubs Code) of the Act,

• “market rent” means the estimated rent which it would be reasonable to pay in respect of the occupation of the pub under a tenancy, assuming that—

  1. (a)

     the hypothetical tenancy is not subject to—

     1. (i)

        a product tie, or

     2. (ii)

        a service tie,

  2. (b)

     the hypothetical tenancy is entered into—

     1. (i)

        on the date the estimate of the rent is being carried out,

     2. (ii)

        in an arm’s length transaction,

     3. (iii)

        after proper marketing,

     4. (iv)

        between parties who are all acting knowledgeably, prudently and willingly, and

  3. (c)

     the pub will continue to be a pub,

• “MRO lease” means a market rent only lease (as defined in regulation 14(1)),

• “negotiation period” has the meaning given in regulation 16(5) to (7),

• “product tie” means a contractual obligation which—

  1. (a)

     requires that a product to be sold in a pub must be supplied by—

     1. (i)

        the landlord of the pub, or

     2. (ii)

        a person nominated by the landlord, and

  2. (b)

     is not a stocking requirement (as defined in this regulation),

• “production year” means a calendar year from 1 February to 31 January,

• “prospective tenant” includes an existing tenant seeking to renew the lease of a tied pub,

• “request date” means the date on which a tied-pub tenant requests in writing a guest beer agreement from the pub-owning business,

• “service equipment charge” means a reasonable charge by the pub-owning business for the cost of servicing or maintaining equipment used to sell guest beer, taking into account the proportion of use of the equipment for guest beer compared to use for other products,

• “service tie” means a contractual obligation which requires that the tenant of a pub receives a service, other than insurance, from—

  1. (a)

     the landlord of the pub, or

  2. (b)

     a person nominated by the landlord,

• “stocking requirement” means a contractual obligation which—

  1. (a)

     requires that some of the beer or cider (or both) that is to be sold in the pub is produced by the landlord,

  2. (b)

     does not require the tenant to procure that beer or cider from a particular supplier, and

  3. (c)

     neither prevents the tenant from, nor penalises the tenant for, selling in the pub beer or cider that is produced by a person other than the landlord (although a contract term may impose restrictions on such sales),

• “writing” includes electronic communication within the meaning of section 15 of the Electronic Communications Act 2000^f3.

References in these Regulations (except for references in regulation 6(1)(a) and (b))—