A. Except as provided in subsection F, a winery shall provide a wholesaler atleast ninety days' prior written notice of any intention to amend, terminate,cancel or not renew any agreement. The notice, a copy of which shall bemailed at the same time to the Board, shall state all the reasons for theintended amendment, termination, cancellation or nonrenewal. After providingsuch notice, a winery may immediately apply to the Board for a determinationthat it is likely to incur substantial hardship if required to comply withthe ninety-day notice requirement. If the Board makes such a determination,the ninety-day notice requirement shall be reduced to thirty days. In thisevent, the thirty-day notice period shall be included in the sixty-dayopportunity to cure period provided in subsection B.
B. Where the reason relates to a condition which may be rectified by actionof the wholesaler, he shall have sixty days in which to take such action and,within the sixty-day period, shall give written notice to the winery if andwhen such action is taken. A copy of the notice shall be mailed at the sametime to the Board. If such condition has been rectified by action of thewholesaler, then the proposed amendment, termination, cancellation ornonrenewal shall be void and without legal effect. However, where the winerycontends that action on the part of the wholesaler has not rectified one ormore of such conditions, the winery must within fifteen days after theexpiration of the sixty-day period request a hearing before the Board todetermine if the condition has been rectified by action of the wholesaler.
C. Where the reason relates to a condition which may not be rectified by thewholesaler within the sixty-day period, the wholesaler may request a hearingbefore the Board to determine if there is good cause for the amendment,termination, cancellation or nonrenewal of the agreement.
D. Upon request in writing within the ninety-day period provided insubsection A from such winery or wholesaler for a hearing, the Board shall,after notice and hearing, determine if the action of the wholesaler hasrectified the condition or, as the case may be, if good cause exists for theamendment, termination, cancellation or nonrenewal of the agreement.
E. In any proceeding brought pursuant to this section in which the existenceof good cause is an issue, the winery shall have the burden of proving theexistence of good cause. Where a petition is made to the Board for adetermination, the agreement in question shall continue in effect pending theBoard's decision and any judicial review thereof, except in any case in whichthe Board makes a finding that there is good cause, as defined in § 4.1-406,for the amendment, termination, cancellation, or nonrenewal, in which casethe winery may, unless otherwise ordered by a court of record, discontinuethe agreement in question. However, where a petition is made to the Boardafter the agreement has been terminated in accordance with the procedures setforth in this section, the filing of the petition shall not cause theterminated agreement to be reinstated unless the terminated wholesaler'sfailure to petition in a timely manner was based upon reasonable reliance onrepresentation or other inducements made by the winery.
F. No notice shall be required and an agreement may be immediately amended,terminated, cancelled or allowed to expire if the reason for the amendment,termination, cancellation or nonrenewal is:
1. The bankruptcy or receivership of the wholesaler;
2. An assignment for the benefit of creditors or similar disposition of theassets of the business, other than the creation of a security interest in theassets of a wholesaler for the purpose of securing financing in the ordinarycourse of business; or
3. Revocation of the wholesaler's license.
(Code 1950, § 4-118.28; 1985, c. 542, § 4-118.48; 1989, c. 10; 1993, c. 866;1997, c. 183.)
A. Except as provided in subsection F, a winery shall provide a wholesaler atleast ninety days' prior written notice of any intention to amend, terminate,cancel or not renew any agreement. The notice, a copy of which shall bemailed at the same time to the Board, shall state all the reasons for theintended amendment, termination, cancellation or nonrenewal. After providingsuch notice, a winery may immediately apply to the Board for a determinationthat it is likely to incur substantial hardship if required to comply withthe ninety-day notice requirement. If the Board makes such a determination,the ninety-day notice requirement shall be reduced to thirty days. In thisevent, the thirty-day notice period shall be included in the sixty-dayopportunity to cure period provided in subsection B.
B. Where the reason relates to a condition which may be rectified by actionof the wholesaler, he shall have sixty days in which to take such action and,within the sixty-day period, shall give written notice to the winery if andwhen such action is taken. A copy of the notice shall be mailed at the sametime to the Board. If such condition has been rectified by action of thewholesaler, then the proposed amendment, termination, cancellation ornonrenewal shall be void and without legal effect. However, where the winerycontends that action on the part of the wholesaler has not rectified one ormore of such conditions, the winery must within fifteen days after theexpiration of the sixty-day period request a hearing before the Board todetermine if the condition has been rectified by action of the wholesaler.
C. Where the reason relates to a condition which may not be rectified by thewholesaler within the sixty-day period, the wholesaler may request a hearingbefore the Board to determine if there is good cause for the amendment,termination, cancellation or nonrenewal of the agreement.
D. Upon request in writing within the ninety-day period provided insubsection A from such winery or wholesaler for a hearing, the Board shall,after notice and hearing, determine if the action of the wholesaler hasrectified the condition or, as the case may be, if good cause exists for theamendment, termination, cancellation or nonrenewal of the agreement.
E. In any proceeding brought pursuant to this section in which the existenceof good cause is an issue, the winery shall have the burden of proving theexistence of good cause. Where a petition is made to the Board for adetermination, the agreement in question shall continue in effect pending theBoard's decision and any judicial review thereof, except in any case in whichthe Board makes a finding that there is good cause, as defined in § 4.1-406,for the amendment, termination, cancellation, or nonrenewal, in which casethe winery may, unless otherwise ordered by a court of record, discontinuethe agreement in question. However, where a petition is made to the Boardafter the agreement has been terminated in accordance with the procedures setforth in this section, the filing of the petition shall not cause theterminated agreement to be reinstated unless the terminated wholesaler'sfailure to petition in a timely manner was based upon reasonable reliance onrepresentation or other inducements made by the winery.
F. No notice shall be required and an agreement may be immediately amended,terminated, cancelled or allowed to expire if the reason for the amendment,termination, cancellation or nonrenewal is:
1. The bankruptcy or receivership of the wholesaler;
2. An assignment for the benefit of creditors or similar disposition of theassets of the business, other than the creation of a security interest in theassets of a wholesaler for the purpose of securing financing in the ordinarycourse of business; or
3. Revocation of the wholesaler's license.
(Code 1950, § 4-118.28; 1985, c. 542, § 4-118.48; 1989, c. 10; 1993, c. 866;1997, c. 183.)
A. Except as provided in subsection F, a winery shall provide a wholesaler atleast ninety days' prior written notice of any intention to amend, terminate,cancel or not renew any agreement. The notice, a copy of which shall bemailed at the same time to the Board, shall state all the reasons for theintended amendment, termination, cancellation or nonrenewal. After providingsuch notice, a winery may immediately apply to the Board for a determinationthat it is likely to incur substantial hardship if required to comply withthe ninety-day notice requirement. If the Board makes such a determination,the ninety-day notice requirement shall be reduced to thirty days. In thisevent, the thirty-day notice period shall be included in the sixty-dayopportunity to cure period provided in subsection B.
B. Where the reason relates to a condition which may be rectified by actionof the wholesaler, he shall have sixty days in which to take such action and,within the sixty-day period, shall give written notice to the winery if andwhen such action is taken. A copy of the notice shall be mailed at the sametime to the Board. If such condition has been rectified by action of thewholesaler, then the proposed amendment, termination, cancellation ornonrenewal shall be void and without legal effect. However, where the winerycontends that action on the part of the wholesaler has not rectified one ormore of such conditions, the winery must within fifteen days after theexpiration of the sixty-day period request a hearing before the Board todetermine if the condition has been rectified by action of the wholesaler.
C. Where the reason relates to a condition which may not be rectified by thewholesaler within the sixty-day period, the wholesaler may request a hearingbefore the Board to determine if there is good cause for the amendment,termination, cancellation or nonrenewal of the agreement.
D. Upon request in writing within the ninety-day period provided insubsection A from such winery or wholesaler for a hearing, the Board shall,after notice and hearing, determine if the action of the wholesaler hasrectified the condition or, as the case may be, if good cause exists for theamendment, termination, cancellation or nonrenewal of the agreement.
E. In any proceeding brought pursuant to this section in which the existenceof good cause is an issue, the winery shall have the burden of proving theexistence of good cause. Where a petition is made to the Board for adetermination, the agreement in question shall continue in effect pending theBoard's decision and any judicial review thereof, except in any case in whichthe Board makes a finding that there is good cause, as defined in § 4.1-406,for the amendment, termination, cancellation, or nonrenewal, in which casethe winery may, unless otherwise ordered by a court of record, discontinuethe agreement in question. However, where a petition is made to the Boardafter the agreement has been terminated in accordance with the procedures setforth in this section, the filing of the petition shall not cause theterminated agreement to be reinstated unless the terminated wholesaler'sfailure to petition in a timely manner was based upon reasonable reliance onrepresentation or other inducements made by the winery.
F. No notice shall be required and an agreement may be immediately amended,terminated, cancelled or allowed to expire if the reason for the amendment,termination, cancellation or nonrenewal is:
1. The bankruptcy or receivership of the wholesaler;
2. An assignment for the benefit of creditors or similar disposition of theassets of the business, other than the creation of a security interest in theassets of a wholesaler for the purpose of securing financing in the ordinarycourse of business; or
3. Revocation of the wholesaler's license.
(Code 1950, § 4-118.28; 1985, c. 542, § 4-118.48; 1989, c. 10; 1993, c. 866;1997, c. 183.)
