§ 28-9-5 — Prohibited Acts - Wholesalers

A wholesaler is prohibited from doing the following:
(1) Fail to devote reasonable efforts and resources, within supplier’s designated sales territory, to the sale and distribution of all the supplier’s brands of beer which the wholesaler has been granted the right to sell or distribute.
(2) Sell or deliver beer to a retail licensee located outside the sales territory designated to the wholesaler by the supplier of a particular brand or brands of beer. Provided, however, during periods of temporary service interruptions impacting a particular sales territory, a wholesaler who normally services the impacted sales territory shall file with the board and give to the affected supplier written notice designating the specific licensed wholesaler or wholesalers, not disapproved by the supplier, who will service the sales territory during the period of temporary service interruption and the approximate length of time of the service interruption. Each wholesaler designated to temporarily service the sales territory shall be a wholesaler who has a current written agreement with a supplier for the brand or brands affected. When the temporary service interruption is over, the wholesaler who normally services the sales territory shall notify in writing the board, the supplier and the wholesaler, or wholesalers, servicing the sales territory on a temporary basis of this fact, and any wholesaler servicing the sales territory on a temporary basis shall cease servicing the sales territory upon receipt of the notice. A wholesaler who is designated to service the impacted sales territory during the period of temporary service shall not be in violation of this chapter, and, with respect to the temporary service territory, shall not have any of the rights provided under Sections 28-9-6 and 28-9-8.
(3) Transfer the wholesaler’s business without giving the supplier written notice of intent to transfer the wholesaler’s business and, where required by this chapter, receiving the supplier’s approval for the proposed transfer. Provided, consent or approval for the supplier shall not be required of any transfer of the wholesaler’s business to a designated member, or any transfer of less than control of the wholesaler’s business. Provided, however, that the wholesaler shall give the supplier written notice of any change in ownership of the wholesaler.

Legislative History

(Acts 1988, No. 88-80, p. 87, §5; Acts 1989, No. 89-525, p. 1074, §1.)