§ 7.1-3-25.5-2 — Amendment or termination of distribution agreement with wholesaler; written notice; opportunity for wholesaler to cure

Indiana § 7.1-3-25.5-2

• Jurisdiction: Indiana
• Art. 3: PERMITS
• Ch. 25.5: Distribution Agreements Between a Beer Wholesaler

Text

(a) As used in this section, "good cause"
means any of the following:
(1) A beer wholesaler's failure to pay a primary source of supply
for products in accordance with the approved terms of the
distribution agreement.
(2) A failure by a beer wholesaler to substantially comply, without
reasonable excuse or justification, with any reasonable and
material provision of the distribution agreement.
(3) A failure by an owner of the beer wholesaler to sell the
person's ownership interest not later than one hundred twenty
(120) days after the later of the following dates:
(A) The date judgment is entered against the owner of the beer
wholesaler for a felony conviction that, in the reasonable
judgment of the primary source of supply, may adversely affect
the goodwill or interests of the beer wholesaler or primary
source of supply.
(B) The date the primary source of supply learns of the felony
conviction described in clause (A).
(b) A primary source of supply that intends to amend, cancel,
terminate, or refuse to renew a distribution agreement may do so only
if the primary source of supply:
(1) acts:
(A) with good cause;
(B) in good faith; and
(C) with due regard of the equities of the beer wholesaler;
(2) gives the beer wholesaler written notice:
(A) in accordance with section 5 of this chapter; and
(B) at least one hundred twenty (120) days before the date the
primary source of supply intends to amend, cancel, terminate,
or refuse to renew the distribution agreement; and
(3) gives the beer wholesaler the opportunity to substantially cure
any deficiency in the beer wholesaler's performance that
constitutes good cause not later than one hundred twenty (120)
days after the date that notice is given under subdivision (2).

Legislative History

As added by P.L.139-2021, SEC.2.