§ 180:4 — Notice of Intent to Terminate

Prior to any termination procedure initiated by the beverage manufacturer, brew pub, or beverage vendor, a wholesale distributor shall be informed in writing of any claimed deficiency existing in the sales territory and shall be given reasonable time to make requested corrections. After this reasonable time has elapsed, a beverage manufacturer, brew pub, or beverage vendor shall provide a wholesale distributor at least 90 days' prior written notice of any intent to amend, terminate, cancel, or not renew any agreement. The notice shall state all the reasons for the intended amendment, termination, cancellation, or nonrenewal. This section shall not apply if the reason for the amendment, termination, cancellation, or nonrenewal is:
I. The bankruptcy or insolvency of the wholesale distributor.
II. An assignment for the benefit of creditors or similar disposition of the assets of the business.
III. Revocation of the wholesale distributor's license, or suspension of the wholesale distributor's license when such suspension has an adverse impact upon the wholesale distributor's ability to sell beverages.
IV. Conviction or a plea of guilty or no contest to a charge of violating a law relating to the business that materially affects the wholesale distributor's ability to remain in business.
V. Willful breach of any material provision of a written agreement between a beverage manufacturer, brew pub, or beverage vendor and a wholesale distributor.
VI. Any attempted transfer of business assets of the wholesale distributor, voting stock of the wholesaler, voting stock of any parent corporation of the wholesale distributor, any change in the beneficial ownership or control of any entity other than a parent corporation owning or controlling voting stock of the wholesale distributor, or any attempted or actual transfer or assignment of the beneficial interest of membership in a limited liability company, when the wholesale distributor has failed to give reasonable prior written notice to the beverage manufacturer, brew pub, or beverage vendor of the proposed transfer.
VII. The wholesale distributor's failure to pay any account when due, upon demand for such payment in accordance with agreed payment terms.
VIII. Fraudulent conduct of the wholesale distributor in its dealings with the beverage manufacturer, brew pub, or beverage vendor or the products of the beverage manufacturer, brew pub, or beverage vendor.

Legislative History

1990, 255:1. 1995, 139:18. 1996, 289:14, 15. 2003, 231:43-45, eff. July 1, 2003.