18B-1300. Purpose. Pursuant to the authority of the State under the Twenty-First Amendment to the United States Constitution, the General Assembly finds that regulation of the business relations between malt beverage manufacturers and importers and the wholesalers of such products is necessary to: (1) Maintain stability and healthy competition in the malt beverage industry in […]
18B-1301. Definitions. (1) "Supplier" means a brewer, bottler, or importer of malt beverages, including anyone who holds a brewery, malt beverages importer or nonresident malt beverages vendor permit. (2) "Wholesaler" means the holder of a malt beverages wholesaler permit. (1989, c. 142, s. 1; 1995, c. 466, s. 14.)
18B-1302. Franchise agreement. (a) Nature of Agreement. – A franchise agreement is a commercial relationship between a wholesaler and supplier of a definite or indefinite duration, whether written or oral, including: (1) A relationship whereby a wholesaler is granted the right to offer and sell the brands of malt beverages offered by the supplier; or […]
18B-1303. Filing of distribution agreement; no discrimination. (a) Filing. – It is unlawful for a supplier to provide malt beverages to a wholesaler unless the Commission has received notification from the supplier designating the brands of the supplier which the wholesaler is authorized to sell and the territory in which such sales may take place. […]
18B-1304. Prohibitions. It is unlawful for a supplier, or an officer, agent or representative of a supplier, to: (1) Coerce or attempt to coerce or persuade a wholesaler to violate any provision of the ABC laws or rules of the Department of Revenue. (2) Except as authorized by G.S. 18B-1305(a1), alter in a material way, […]
18B-1305. Cause for termination of franchise agreement. (a) Meaning of Good Cause. – Good cause for altering or terminating a franchise agreement, or failing to renew or causing a wholesaler to resign from such an agreement, exists when the wholesaler fails to comply with provisions of the agreement which are reasonable, material, not unconscionable, and […]
18B-1306. Remedies for wrongful termination. (a) Injunctive Relief. – A wholesaler whose franchise agreement is altered, terminated or not renewed in violation of this Article may bring an action to enjoin such unlawful alteration, termination or failure to renew. The action may be brought in the county in which the wholesaler has its principal place […]
18B-1307. Transfer or merger of wholesaler’s business. (a) Right of Transfer to Designated Family Member. – An individual’s interest in a wholesaler business, including the rights under the franchise agreement with the supplier, may be transferred or assigned to a designated family member. The transfer or assignment shall not be effective until written notice is […]
18B-1308. Article part of all franchise agreements. The provisions of this Article shall be part of all franchise agreements as defined in G.S. 18B-1302 and may not be altered by the parties. A wholesaler’s rights under this Article may not be waived or superseded by the provisions of a written franchise agreement prepared by a […]
18B-1309. Mediation at direction of Alcoholic Beverage Control Commission. If a dispute arises between a wholesaler and supplier under this Article, and such dispute appears likely to lead to litigation, the Commission, upon request of any party or on its own initiative, may require the parties to participate in mediation in an effort to resolve […]
