State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_18B > GS_18B-1306

§18B‑1306.  Remedies for wrongful termination.

(a)        Injunctive Relief.– A wholesaler whose franchise agreement is altered, terminated or not renewedin violation of this Article may bring an action to enjoin such unlawfulalteration, termination or failure to renew.  The action may be brought in thecounty in which the wholesaler has its principal place of business or in anycounty in which the wholesaler receives or distributes the products in issue. Any injunction issued pursuant to this subsection shall require the wholesalerto supply the customers in its territory with their reasonable retailrequirements and to otherwise serve the territory.

(b)        Monetary Damages. –In lieu of injunctive relief, a wholesaler whose franchise agreement isaltered, terminated or not renewed in violation of this Article shall beentitled to recover monetary damages from the supplier.  The amount to whichthe wholesaler is entitled shall be the value of the wholesaler's businessdistributing the supplier's products, including:

(1)        The laid‑incosts to the wholesaler of the inventory of the supplier's products, includingany State and local taxes paid on the inventory by the wholesaler, plus areasonable charge for handling of the products upon surrender of the inventoryto the supplier.

(2)        The fair marketvalue of all assets, including ancillary businesses of the wholesaler used indistributing the supplier's products.  The total compensation to be paid to thewholesaler shall be reduced, however, by any amount received by the wholesalerfrom sale of assets of the business used in distributing the supplier'sproducts as well as by the value such assets have to the wholesaler unrelatedto the supplier's products.  "Fair market value" means the highestdollar amount at which a seller would be willing to sell and a buyer willing tobuy at a time prior to the alteration, termination or failure to renew, wheneach possesses all information relevant to the transaction. (1989,c. 142, s. 1.)