This text of Tennessee § 57-5-504 (Transfer of wholesaler's business) is published on Counsel Stack Legal Research, covering Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)A wholesaler shall give the supplier written notice of the wholesaler's proposed transfer of the wholesaler's business not less than thirty (30) days prior to the completion of the transfer, except in cases of transfer by inheritance, in which case the transferee shall give the supplier written notice of the transferee's ownership interest within a reasonable time after the transfer is completed.
(b)A supplier's consent shall not be required for any transfer of the wholesaler's business to a designated member or for any transfer of less than control of the wholesaler's business; however, a supplier's written consent shall be required for any transfer of the wholesaler's business to a person other than a designated member.
(c)Notwithstanding subsection (b), written consent from a supp
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(a) A wholesaler shall give the supplier written notice of the wholesaler's proposed transfer of the wholesaler's business not less than thirty (30) days prior to the completion of the transfer, except in cases of transfer by inheritance, in which case the transferee shall give the supplier written notice of the transferee's ownership interest within a reasonable time after the transfer is completed. (b) A supplier's consent shall not be required for any transfer of the wholesaler's business to a designated member or for any transfer of less than control of the wholesaler's business; however, a supplier's written consent shall be required for any transfer of the wholesaler's business to a person other than a designated member. (c) Notwithstanding subsection (b), written consent from a supplier shall be required for any transfer of the wholesaler's business to a designated member or other transferee if any of the following conditions apply: (1) The transferee or any owner of the transferee has been convicted of a felony under the United States Code or the laws of any state which would adversely affect the good will or interests of the wholesaler or supplier; (2) The transferee or any owner of the transferee has had a previous alcoholic beverage license revoked or suspended by the regulatory agency of the United States government or any state, whereby service was interrupted for more than ninety (90) days; (3) The transferee or any owner of the transferee is insolvent or has filed any voluntary or involuntary petition under any bankruptcy or receivership laws, or has executed an assignment for the benefit of creditors; or (4) The transferee or any owner of the transferee has had any previous agreement with the supplier involuntarily terminated, cancelled, discontinued or not renewed by the supplier for good cause. (d) If the transferee is a designated member, a supplier shall not interfere with, prevent or unreasonably delay the transfer of the wholesaler's business. An unreasonable delay is one that exceeds thirty (30) days after the intended date of transfer as set forth in the notice required by subsection (a). (e) If the transferee is not a designated member, a supplier may not withhold consent or unreasonably interfere with or delay the transfer if the transferee meets reasonable standards and qualifications which are nondiscriminatory and material. An unreasonable delay is one that exceeds thirty (30) days after the receipt of all material information reasonably requested. The supplier shall have the burden of proving that the proposed transferee does not meet such standards and qualifications.