A. Except for discontinuance of a brand or for good cause as provided in §4.1-505, the purchaser of a brewery shall become obligated to all of theterms and conditions of the selling brewery's agreements with distributors ineffect on the date of purchase. The purchaser of a brand from a breweryshall become obligated to all of the terms and conditions of the sellingbrewery's agreement with distributors concerning that brand. Whenever such apurchase of a brand results in the creation of a dual distributorship, theprovisions of subdivisions 1 and 2 of subsection B will determine thedistribution rights to such brand or any extension thereof. For the limitedpurpose of making such determination, the brewery selling such brand shall bea nonsurviving brewery and the purchaser shall be a surviving brewery.
B. For purposes of this section, when a purchase of a brewery by or on behalfof another brewery causes the selling brewery to cease to exist as anindependent legal entity, the selling brewery shall be regarded as anonsurviving brewery and the brewery on whose behalf the purchase was madeshall be regarded as a surviving brewery. The following rules shall apply inorder to determine (i) the distribution rights to any brands which are firstmarketed in the Commonwealth by the surviving brewery on or after July 1,1985, with respect to a dual distributorship created prior to July 1, 1985,and (ii) the distribution rights to any brands, regardless of when they werefirst marketed in the Commonwealth, with respect to a dual distributorshipcreated on or after July 1, 1985:
1. If the surviving brewery distributes in the Commonwealth any brand orbrands of the nonsurviving brewery which that brewery marketed in theCommonwealth at any time during the one-year period ending on the day thepurchase agreement was made, these brands shall be distributed through thosebeer wholesalers who were distributors in the Commonwealth for thenonsurviving brewery. Any brands which the surviving brewery had marketed inthe Commonwealth prior to the purchase shall be distributed through thosebeer wholesalers who were wholesalers of the surviving brewery prior to thepurchase.
2. If the surviving brewery decides to market in the Commonwealth a new brandwhich is clearly an extension of a brand already assigned to beer wholesalersin the Commonwealth, the new brand shall be distributed through thosewholesalers who distribute the brand of which the new brand is an extension.
3. If the surviving brewery decides to introduce in the Commonwealth a newbrand which was not marketed in the Commonwealth at any time during theone-year period ending on the date the purchase agreement was made and whichis not a brand extension, the surviving brewery shall market the new brandeither through a distributor of the nonsurviving brewery or through adistributor who was a distributor of the surviving brewery prior to thepurchase, as the brewery may see fit in any territory.
C. Subsection B shall not apply to determine distributorship rights to anybrands or brand extensions which were marketed in the Commonwealth prior toJuly 1, 1985, with respect to any dual distributorship created prior to July1, 1985.
A. Except for discontinuance of a brand or for good cause as provided in §4.1-505, the purchaser of a brewery shall become obligated to all of theterms and conditions of the selling brewery's agreements with distributors ineffect on the date of purchase. The purchaser of a brand from a breweryshall become obligated to all of the terms and conditions of the sellingbrewery's agreement with distributors concerning that brand. Whenever such apurchase of a brand results in the creation of a dual distributorship, theprovisions of subdivisions 1 and 2 of subsection B will determine thedistribution rights to such brand or any extension thereof. For the limitedpurpose of making such determination, the brewery selling such brand shall bea nonsurviving brewery and the purchaser shall be a surviving brewery.
B. For purposes of this section, when a purchase of a brewery by or on behalfof another brewery causes the selling brewery to cease to exist as anindependent legal entity, the selling brewery shall be regarded as anonsurviving brewery and the brewery on whose behalf the purchase was madeshall be regarded as a surviving brewery. The following rules shall apply inorder to determine (i) the distribution rights to any brands which are firstmarketed in the Commonwealth by the surviving brewery on or after July 1,1985, with respect to a dual distributorship created prior to July 1, 1985,and (ii) the distribution rights to any brands, regardless of when they werefirst marketed in the Commonwealth, with respect to a dual distributorshipcreated on or after July 1, 1985:
1. If the surviving brewery distributes in the Commonwealth any brand orbrands of the nonsurviving brewery which that brewery marketed in theCommonwealth at any time during the one-year period ending on the day thepurchase agreement was made, these brands shall be distributed through thosebeer wholesalers who were distributors in the Commonwealth for thenonsurviving brewery. Any brands which the surviving brewery had marketed inthe Commonwealth prior to the purchase shall be distributed through thosebeer wholesalers who were wholesalers of the surviving brewery prior to thepurchase.
2. If the surviving brewery decides to market in the Commonwealth a new brandwhich is clearly an extension of a brand already assigned to beer wholesalersin the Commonwealth, the new brand shall be distributed through thosewholesalers who distribute the brand of which the new brand is an extension.
3. If the surviving brewery decides to introduce in the Commonwealth a newbrand which was not marketed in the Commonwealth at any time during theone-year period ending on the date the purchase agreement was made and whichis not a brand extension, the surviving brewery shall market the new brandeither through a distributor of the nonsurviving brewery or through adistributor who was a distributor of the surviving brewery prior to thepurchase, as the brewery may see fit in any territory.
C. Subsection B shall not apply to determine distributorship rights to anybrands or brand extensions which were marketed in the Commonwealth prior toJuly 1, 1985, with respect to any dual distributorship created prior to July1, 1985.
A. Except for discontinuance of a brand or for good cause as provided in §4.1-505, the purchaser of a brewery shall become obligated to all of theterms and conditions of the selling brewery's agreements with distributors ineffect on the date of purchase. The purchaser of a brand from a breweryshall become obligated to all of the terms and conditions of the sellingbrewery's agreement with distributors concerning that brand. Whenever such apurchase of a brand results in the creation of a dual distributorship, theprovisions of subdivisions 1 and 2 of subsection B will determine thedistribution rights to such brand or any extension thereof. For the limitedpurpose of making such determination, the brewery selling such brand shall bea nonsurviving brewery and the purchaser shall be a surviving brewery.
B. For purposes of this section, when a purchase of a brewery by or on behalfof another brewery causes the selling brewery to cease to exist as anindependent legal entity, the selling brewery shall be regarded as anonsurviving brewery and the brewery on whose behalf the purchase was madeshall be regarded as a surviving brewery. The following rules shall apply inorder to determine (i) the distribution rights to any brands which are firstmarketed in the Commonwealth by the surviving brewery on or after July 1,1985, with respect to a dual distributorship created prior to July 1, 1985,and (ii) the distribution rights to any brands, regardless of when they werefirst marketed in the Commonwealth, with respect to a dual distributorshipcreated on or after July 1, 1985:
1. If the surviving brewery distributes in the Commonwealth any brand orbrands of the nonsurviving brewery which that brewery marketed in theCommonwealth at any time during the one-year period ending on the day thepurchase agreement was made, these brands shall be distributed through thosebeer wholesalers who were distributors in the Commonwealth for thenonsurviving brewery. Any brands which the surviving brewery had marketed inthe Commonwealth prior to the purchase shall be distributed through thosebeer wholesalers who were wholesalers of the surviving brewery prior to thepurchase.
2. If the surviving brewery decides to market in the Commonwealth a new brandwhich is clearly an extension of a brand already assigned to beer wholesalersin the Commonwealth, the new brand shall be distributed through thosewholesalers who distribute the brand of which the new brand is an extension.
3. If the surviving brewery decides to introduce in the Commonwealth a newbrand which was not marketed in the Commonwealth at any time during theone-year period ending on the date the purchase agreement was made and whichis not a brand extension, the surviving brewery shall market the new brandeither through a distributor of the nonsurviving brewery or through adistributor who was a distributor of the surviving brewery prior to thepurchase, as the brewery may see fit in any territory.
C. Subsection B shall not apply to determine distributorship rights to anybrands or brand extensions which were marketed in the Commonwealth prior toJuly 1, 1985, with respect to any dual distributorship created prior to July1, 1985.
