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§ 4.1-500. Definitions

As used in this chapter, unless the context requires a different meaning: “Agreement” means a commercial relationship, not required to be evidenced in writing, of definite or indefinite duration, between a brewery and beer wholesaler pursuant to which the wholesaler has been authorized to distribute one or more of the brewery’s brands of beer. The […]

§ 4.1-501. Applicability

This chapter shall apply to all agreements in effect on or after January 1, 1978. 1978, c. 579, § 4-118.18; 1993, c. 866.

§ 4.1-502. No inducement or coercion

No brewery shall: 1. Induce or coerce, or attempt to induce or coerce, any beer wholesaler to accept delivery of any beer or any other commodity which has not been ordered by the beer wholesaler. 2. Induce or coerce, or attempt to induce or coerce, any beer wholesaler to do any illegal act by any […]

§ 4.1-503. Sales territory

Each brewery which enters into an agreement with a beer wholesaler shall designate a sales territory for that wholesaler which is applicable to the agreement. No brewery shall enter into any agreement with more than one beer wholesaler for the purpose of establishing more than one agreement for its brands of beer in any territory. […]

§ 4.1-504. Sale of brewery

A. Except for discontinuance of a brand or for good cause as provided in § 4.1-505, the purchaser of a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreements with distributors in effect on the date of purchase. The purchaser of a brand from a brewery shall become […]

§ 4.1-505. Cancellation

Notwithstanding the terms, provisions or conditions of any agreement, no brewery shall unilaterally amend, cancel, terminate or refuse to continue to renew any agreement, or unilaterally cause a wholesaler to resign from an agreement, unless the brewery has first complied with § 4.1-506 and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuation or causing […]

§ 4.1-506. Notice of intent to terminate

A. Except as provided in subsection F, a brewery shall provide a wholesaler at least ninety days’ prior written notice of any intent to amend, terminate, cancel or not renew any agreement. The notice, a copy of which shall be mailed at the same time to the Board, shall state all the reasons for the […]

§ 4.1-507. Transfer of business

A. No brewery shall unreasonably withhold or delay consent to any transfer of the wholesaler’s business, or transfer of the stock or other interest in the wholesalership, whenever the wholesaler to be substituted meets the material and reasonable qualifications and standards required of its wholesalers. Whenever a transfer of a wholesaler’s business occurs, the purchaser […]

§ 4.1-508. Remedies

A. In addition to any other sanctions which the Board is empowered by law to impose, it may order that any act or practice constituting a violation of this chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery is found to have attempted or accomplished an […]

§ 4.1-509. Board proceedings and appellate review

A. The Board, upon petition by any beer wholesaler or brewery, or upon its own motion if it has reasonable grounds to believe a violation has or may have occurred, shall have the responsibility of determining whether a violation of any provision of this chapter has occurred. The Board may, if it finds that a […]

§ 4.1-509.1. Board proceedings; contemplated actions by brewery or wholesaler

A. For purposes of this section, “contemplated action” means an action proposed by a brewery or wholesaler that (i) if carried out would violate any provision of this chapter or subdivision 1 b (v) of § 4.1-225 and (ii) is demonstrated by a specific written statement authored by a brewery or an employee of a […]

§ 4.1-510. Price of product

No brewery, whether by means of a term or condition of an agreement or otherwise, shall fix or maintain the prices at which the wholesaler shall sell any beer. 1978, c. 579, § 4-118.12; 1993, c. 866.

§ 4.1-511. Increase of prices

No brewery or beer importer shall increase the prices charged any wholesale beer licensee for beer except by written notice to the wholesaler signed by an authorized officer or agent of the brewery or beer importer, which notice shall contain the amount and effective date of the increase. A copy of the notice shall be […]

§ 4.1-512. Retaliatory action prohibited

A brewery shall not take retaliatory action against a wholesaler who files or manifests an intention to file a complaint of alleged violation of state or federal law or regulation by the brewery with the appropriate state or federal regulatory or judicial authority. Retaliatory action shall include, but is not limited to, refusal without good […]

§ 4.1-513. Management

No brewery shall require or prohibit any change in management or personnel of any wholesaler unless the current or potential management or personnel fails to meet reasonable qualifications and standards required by the brewery for all its wholesalers. 1978, c. 579, § 4-118.14; 1985, c. 549; 1993, c. 866.

§ 4.1-514. Discrimination prohibited

No brewery shall discriminate among its wholesalers in any business dealings including, but not limited to, the price of beer sold to the wholesaler, unless the classification among its wholesalers is based upon reasonable grounds. 1978, c. 579, § 4-118.15; 1993, c. 866.

§ 4.1-515. Waiver prohibited; conflicts of laws

A. No brewery shall require any wholesaler to waive compliance with any provision of this chapter. Any contract or agreement purporting to do so is void and unenforceable to the extent of the waiver or variance. Nothing in this chapter shall limit or prohibit good faith settlements of disputes voluntarily entered into between the parties. […]

§ 4.1-516. Right of free association

No brewery or wholesaler shall restrict or inhibit the right of free association among breweries or wholesalers for any lawful purpose. 1978, c. 579, § 4-118.19; 1993, c. 866.

§ 4.1-517. Reasonableness and good faith

A. Every agreement entered into under this chapter shall impose on the parties the obligation to act in good faith. B. This chapter shall impose on every term and provision of any agreement a requirement of reasonableness. Every term or provision shall be interpreted so that the requirements or obligations imposed therein are reasonable. 1985, […]