§ 3-5-1109 — Prohibited acts by wholesaler

A wholesaler shall not do any of the following: (1) Fail to devote such efforts and resources 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 as are required in the wholesaler's agreement with the supplier; (2) (A) 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. (B) (i) Provided, however, during periods of temporary service interruptions impacting a particular sales territory, a supplier may appoint another wholesaler to service the sales territory during the period of temporary service interruption. (ii) A wholesaler who is designated to service the impacted sales territory during the period of temporary service interruption shall not be in violation of this subchapter and shall not have any of the rights provided under §§ 3-5-1108 and 3-5-1111 with respect to the temporary service territory. (3) (A) Transfer the wholesaler's business without giving the supplier written notice of intent to transfer the wholesaler's business and, where required by this subchapter, receiving the supplier's approval for the proposed transfer. (B) Provided, consent or approval of the supplier shall not be required of any transfer of the wholesaler's business to a designated member, or of any transfer of less than ten percent (10%) of the wholesaler's business unless such transfer results in a change in control. (C) Provided, however, that the wholesaler shall give the supplier written notice of any change in ownership of the wholesaler.

Legislative History

Acts 1991, No. 8, § 4; 1991, No. 866, § 4.