State Codes and Statutes

Statutes > Utah > Title-32a > Chapter-11a > 32a-11a-108-repealed-07-01-11

32A-11a-108 (Repealed 07/01/11). Reasonable compensation -- Arbitration.
(1) If a supplier violates Section 32A-11a-103 or 32A-11a-107, the supplier shall beliable to the wholesaler for the laid-in cost of inventory of the affected brands plus anydiminution in the fair market value of the wholesaler's business with relation to the affectedbrands. In determining fair market value, consideration shall be given to all elements of value,including good will and going concern value.
(2) (a) A distributorship agreement may require that any or all disputes between asupplier and a wholesaler be submitted to binding arbitration. In the absence of an applicablearbitration provision in the distributorship agreement, either the supplier or the wholesaler mayrequest arbitration if a supplier and a wholesaler are unable to mutually agree on:
(i) whether or not good cause exists for termination or nonrenewal;
(ii) whether or not the supplier unreasonably withheld approval of a sale or transfer underSection 32A-11a-107; or
(iii) the reasonable compensation to be paid for the value of the wholesaler's business inaccordance with Subsection (1).
(b) If a supplier or wholesaler requests arbitration under Subsection (2)(a) and the otherparty agrees to submit the matter to arbitration, an arbitration panel shall be created with thefollowing members:
(i) one member selected by the supplier in a writing delivered to the wholesaler within 10business days of the date arbitration was requested under Subsection (2)(a);
(ii) one member selected by the wholesaler in a writing delivered to the supplier within10 business days of the date arbitration was requested under Subsection (2)(a); and
(iii) one member selected by the two arbitrators appointed under Subsections (2)(b)(i)and (ii).
(c) If the arbitrators selected under Subsection (2)(b)(iii) fail to choose a third arbitratorwithin 10 business days of their selection, a judge of a district court in the county in which thewholesaler's principal place of business is located shall select the third arbitrator.
(d) Arbitration costs shall be divided equally between the wholesaler and the supplier.
(e) The award of the arbitration panel is binding on the parties unless appealed within 20days from the date of the award.
(f) Subject to the requirements of this chapter, arbitration and all proceedings on appealshall be governed by Title 78B, Chapter 11, Utah Uniform Arbitration Act.

Amended by Chapter 3, 2008 General Session
Repealed by Chapter 276, 2010 General Session