§ 35-8A-6 — Conditions for terminating, failing to renew, or refusing to continue under an agreement by supplier--Notice to wholesaler.

Upon providing the wholesaler notice by certified mail, a supplier may immediately terminate an agreement, cancel an agreement, fail to renew an agreement upon expiration of its term, or refuse to continue under an agreement if any of the following has occurred: (1) The state or federal license of the wholesaler has been revoked or suspended for a period of more than thirty-one days; (2) The wholesaler is insolvent, within the definition of that term contained in 11 U.S.C. § 101, as amended to January 1, 2008, and an order for relief under 11 U.S.C. ch. 7, as amended to January 1, 2008, has been entered with respect to the wholesaler, or there has been a liquidation or dissolution of the wholesaler that materially affects the wholesaler's ability to remain in business; (3) The wholesaler or any individual who holds ten percent or more of the stock or other ownership interest of the wholesaler has been convicted of, or pleads guilty to, a felony that may in the reasonable judgment of the supplier materially and adversely affect the ability of the wholesaler to sell the supplier's products in the wholesaler's territory; (4) The wholesaler has committed fraud in its dealings with the supplier or the supplier's products; (5) The wholesaler has sold malt beverages supplied by the supplier to a retailer who the wholesaler knows, or reasonably should know, does not have a location within the wholesaler's territory at which the retailer is entitled to resell malt beverages; or the wholesaler has sold malt beverages supplied by the supplier to any person the wholesaler knows or should know will sell or supply all or part of the malt beverages to any retail location that does not have a location within the wholesaler's territory at which the retailer is entitled to resell malt beverages; (6) The wholesaler has failed to pay for products ordered and delivered in accordance with established terms with the supplier and has continued to fail to make payment within five business days after receipt of written notice of the delinquency and demand for immediate payment; (7) The wholesaler has made a transfer of wholesaler's business without prior written notice to, and approval by, the supplier in accordance with this chapter; (8) The wholesaler ceases to carry on business with respect to the brewer's products unless the failure to carry on business is due to force majeure and the wholesaler has not taken reasonable steps to overcome those events that constitute the force majeure or has been unable to carry on business for a period of more than five days; or (9) The brewer and wholesaler agree to a termination.

Legislative History

SL 1990, ch 300, § 6; SL 2008, ch 37, § 192.