§ 7.1-3-25.5-3 — When prior written notice not required before amendment or termination of distribution agreement with wholesaler

Indiana § 7.1-3-25.5-3

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

Text

(a) For purposes of this section, "good
cause" means any of the following:
(1) A revocation or suspension of a beer wholesaler's:
(A) federal basic permit; or
(B) permit issued under this title;
for more than fourteen (14) days.
(2) The assignment or attempted assignment by a beer wholesaler
for the benefit of creditors.
(3) Any:
(A) attempted transfer of:
(i) business assets;
(ii) voting stock; or
(iii) voting stock of any parent corporation;
of the wholesaler; or
(B) change in the beneficial ownership or control of any
wholesaler entity;
without obtaining the prior approval of the primary source of
supply.
(4) The institution of bankruptcy proceedings by or against a beer
wholesaler.
(5) The dissolution or liquidation of a beer wholesaler.
(6) The insolvency of a beer wholesaler.
(7) Fraudulent conduct by a beer wholesaler in any dealings with
a primary source of supply or the primary source of supply's
products, including an intentional sale of beer that an owner or
senior manager of the wholesaler knows or should know is
outside the primary source of supply's established standards.
(b) A primary source of supply may cancel, terminate, or refuse to
renew a distribution agreement with a beer wholesaler without
providing prior notice of the cancellation, termination, or refusal, 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; and
(2) provides the beer wholesaler with written notice in accordance
with section 5 of this chapter, not later than five (5) days after the
date of the cancellation of, termination of, or refusal to renew the
distribution agreement.

Legislative History

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