State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_18B > GS_18B-1204

§18B‑1204.  Cancellation.

Notwithstanding the terms,provisions, or conditions of any agreement, no winery may amend, cancel,terminate, or refuse to continue to renew any agreement, or cause a wholesalerto resign from an agreement, unless good cause exists for amendment,termination, cancellation, nonrenewal, noncontinuation, or resignation."Good cause" does not include a change in ownership of a winery."Good cause" does include:

(1)        Revocation of thewholesaler's permit or license to do business in this State;

(2)        Bankruptcy orreceivership of the wholesaler;

(3)        Assignment for thebenefit of creditors or similar disposition of the assets of the wholesaler; or

(4)        Failure of thewholesaler to comply substantially, without reasonable excuse or justification,with any reasonable and material requirement imposed upon him by the winery,including a substantial failure by a wine wholesaler to:

a.         Maintain a salesvolume of the brands offered by the winery, or

b.         Render servicescomparable in quality, quantity, or volume to the sales volumes maintained andservices rendered by other wholesalers of the same brands within the State.

In any determination as towhether a wholesaler has failed to comply substantially, without reasonableexcuse or justification, with any reasonable and material requirement imposedupon him by the winery, consideration shall be given to the relative size,population, geographical location, number of retail outlets, demand for theproducts applicable to the territory of the wholesaler in question and tocomparable territories, and any reasonable sales quota set by the agreement.The burden of proving good cause for amendment, termination, cancellation,nonrenewal, noncontinuation, or resignation is on the winery. (1983,c. 85, s. 2.)