§ 28-9-7 — Transfer of Wholesaler’s Business

Alabama § 28-9-7

• Jurisdiction: Alabama
• Title 28: Intoxicating Liquor, Malt Beverages and Wine
• Ch. 9: Business Relations Between Wholesalers and Suppliers of Beer

Text

(a) Upon written notice of intent to transfer the wholesaler’s business, any individual owning or deceased individual who owned an interest in a wholesaler may transfer the wholesaler’s business to a designated member, or to any other person who meets the nondiscriminatory, material and reasonable qualifications and standards required by the supplier for Alabama wholesalers. The consent or approval of the supplier shall not be required of any transfer of the wholesaler’s business, including the assignment of wholesaler’s rights under the agreement, to a designated member or shall not be withheld or unreasonably delayed to a proposed transferee (other than a designated member) who meets such nondiscriminatory, material and reasonable qualifications and standards. Provided, however, the supplier shall have the burden of proving that the proposed transferee fails to meet such qualifications and standards which are nondiscriminatory, material and reasonable and consistently applied to Alabama wholesalers by the supplier. Provided, such designated member or transferee shall in no event be qualified as a transferee, without the written approval or consent of the supplier, where such proposed transferee shall have been involved in any of the following:
(1) Insolvency, filing of any voluntary or involuntary petition under any bankruptcy or receivership law, or execution of any assignment for the benefit of creditors; or
(2) Revocation or suspension of an alcoholic beverage license by the regulatory agency of the United States Government or any state, whereby service was interrupted for more than 61 days; or
(3) Convicted of a felony under the United States Code or the laws of any state, which reasonably may adversely affect the good will or interest of the wholesaler or supplier; or
(4) Had an agreement involuntarily terminated, cancelled, not renewed, or discontinued by a supplier for good cause.
(b) The supplier shall not interfere with, prevent or unreasonably delay the transfer of the wholesaler’s business, including an assignment of wholesaler’s rights under the agreement, if the proposed transferee is a designated member, or if the transferee other than a designated member meets such nondiscriminatory, material and reasonable qualifications and standards required by the supplier for Alabama wholesalers. Where the transferee is other than a designated member, the supplier may in good faith and for good cause related to the reasonable qualifications refuse to accept the transfer of wholesaler’s business or the assignment of wholesaler’s rights under the agreement. The supplier shall have the burden proving that it has acted in good faith and that there was good cause for failure to accept or consent to the transfer of the wholesaler’s business or the assignment of wholesaler’s rights under the agreement.

Legislative History

(Acts 1988, No. 88-80, p. 87, §7; Acts 1989, No. 89-525, p. 1074, §1.)