§ 5-04-07 — Reasonable compensation for wrongful cancellation

North Dakota § 5-04-07

• Jurisdiction: North Dakota
• Title 5: Alcoholic Beverages
• Ch. 5-04: Beer Wholesaler and Brewer Relationships

Text

1. Any brewer which amends, cancels, terminates, or refuses to renew any beer
agreement, or causes a wholesaler to resign from an agreement, unless for "good
cause" as defined by section 5-04-04, or which unreasonably withholds consent to any
assignment, transfer, or sale of a wholesaler's business, shall pay the wholesaler
reasonable compensation for the value of the wholesaler's business with relationship
to the terminated brand or brands. The value of the wholesaler's business includes,
but is not limited to, the fair market value of the wholesaler's business with respect to
the terminated brand or brands, including the value of any ancillary business of the
wholesaler and the goodwill of the business or ancillary business. The value of the
wholesaler's business may not exceed the wholesaler's actual damages.
2. If the brewer and the beer wholesaler are unable to mutually agree on reasonable
compensation for the value of the wholesaler's business, the matter must be submitted
to a neutral arbitrator to be selected by the parties or, if they cannot agree, by the
presiding district judge of the district in which the wholesaler's main office is located.
All arbitration costs shall be divided equally between the wholesaler and the brewer.
The award of the neutral arbitrator shall be final and binding on the parties.