A. Except as provided in subsection F, a brewery shall provide a wholesalerat least ninety days' prior written notice of any intent 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.
B. Where the reason relates to a condition or conditions which may berectified by action of the wholesaler, he shall have sixty days in which totake such action and shall, within the sixty-day period, give written noticeto the brewery if and when such action is taken. A copy of the notice shallbe mailed at the same time to the Board. If such condition has been rectifiedby action of the wholesaler, then the proposed amendment, termination,cancellation or nonrenewal shall be void and without legal effect. However,where the brewery contends that action on the part of the wholesaler has notrectified one or more of such conditions the brewery shall within fifteendays after the expiration of such sixty-day period request a hearing beforethe Board to determine if the condition has been rectified by action of thewholesaler.
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 brewery 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 brewery shall have the burden of proving theexistence of good cause. Where a petition is made to the Board in a timelymanner for a determination, the agreement in question shall continue ineffect pending the Board's decision and any judicial review thereof, exceptin any case in which the Board makes a finding that there is good cause, asdefined in § 4.1-505, for the amendment, termination, cancellation, ornonrenewal, in which case the brewery may, unless otherwise ordered by acourt of record, discontinue the agreement in question.
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.
(1978, c. 579, § 4-118.8; 1985, c. 549; 1993, c. 866; 1997, c. 183.)
A. Except as provided in subsection F, a brewery shall provide a wholesalerat least ninety days' prior written notice of any intent 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.
B. Where the reason relates to a condition or conditions which may berectified by action of the wholesaler, he shall have sixty days in which totake such action and shall, within the sixty-day period, give written noticeto the brewery if and when such action is taken. A copy of the notice shallbe mailed at the same time to the Board. If such condition has been rectifiedby action of the wholesaler, then the proposed amendment, termination,cancellation or nonrenewal shall be void and without legal effect. However,where the brewery contends that action on the part of the wholesaler has notrectified one or more of such conditions the brewery shall within fifteendays after the expiration of such sixty-day period request a hearing beforethe Board to determine if the condition has been rectified by action of thewholesaler.
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 brewery 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 brewery shall have the burden of proving theexistence of good cause. Where a petition is made to the Board in a timelymanner for a determination, the agreement in question shall continue ineffect pending the Board's decision and any judicial review thereof, exceptin any case in which the Board makes a finding that there is good cause, asdefined in § 4.1-505, for the amendment, termination, cancellation, ornonrenewal, in which case the brewery may, unless otherwise ordered by acourt of record, discontinue the agreement in question.
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.
(1978, c. 579, § 4-118.8; 1985, c. 549; 1993, c. 866; 1997, c. 183.)
A. Except as provided in subsection F, a brewery shall provide a wholesalerat least ninety days' prior written notice of any intent 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.
B. Where the reason relates to a condition or conditions which may berectified by action of the wholesaler, he shall have sixty days in which totake such action and shall, within the sixty-day period, give written noticeto the brewery if and when such action is taken. A copy of the notice shallbe mailed at the same time to the Board. If such condition has been rectifiedby action of the wholesaler, then the proposed amendment, termination,cancellation or nonrenewal shall be void and without legal effect. However,where the brewery contends that action on the part of the wholesaler has notrectified one or more of such conditions the brewery shall within fifteendays after the expiration of such sixty-day period request a hearing beforethe Board to determine if the condition has been rectified by action of thewholesaler.
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 brewery 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 brewery shall have the burden of proving theexistence of good cause. Where a petition is made to the Board in a timelymanner for a determination, the agreement in question shall continue ineffect pending the Board's decision and any judicial review thereof, exceptin any case in which the Board makes a finding that there is good cause, asdefined in § 4.1-505, for the amendment, termination, cancellation, ornonrenewal, in which case the brewery may, unless otherwise ordered by acourt of record, discontinue the agreement in question.
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.
(1978, c. 579, § 4-118.8; 1985, c. 549; 1993, c. 866; 1997, c. 183.)
