A. In addition to any other sanctions which the Board is empowered by law toimpose, it may order that any act or practice constituting a violation ofthis chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery is found to have attempted oraccomplished an amendment, termination, cancellation, or refusal to continueor renew an agreement without good cause as defined in § 4.1-505, the Boardshall, upon the request of the wholesaler involved, enter an order requiringthat (i) the agreement remain in effect or be reinstated or (ii) the brewerypay the wholesaler reasonable compensation for the value of the agreement,which shall be determined in the manner provided for in subsection B.Reasonable compensation shall include, but is not limited to, the following:
1. The fair market value of the assets used by the wholesaler specificallyfor the purpose of distributing the brewery's products;
2. The cost of the wholesaler's inventory of the brewery's productscalculated as the sum of the net price paid by the wholesaler for theinventory;
3. The amount of any taxes paid by the wholesaler in connection withpurchasing the inventory;
4. The cost of transporting the inventory from the brewery to thewholesaler's warehouse, plus any handling costs; and
5. The goodwill of the wholesaler's business representing a value over andabove the fair market value of the foregoing tangible assets.
The compensation for such assets shall be subject to offset for (i) any sumsrecovered by the wholesaler in liquidation of the assets and (ii) the valuewhich the assets have to the wholesaler independent of their value for use indistributing the brewery's products.
B. In the event the brewery and the beer wholesaler are unable to agree onthe reasonable compensation to be paid for the value of the agreement, thematter shall be submitted to a panel of three arbitrators. The brewery andthe beer wholesaler shall each select one arbitrator and the two arbitratorsselected shall appoint a third arbitrator who shall be a person qualified byexperience to appraise the value of existing businesses. The decision of thearbitrators shall be rendered within ninety days from the time the matter issubmitted to arbitration unless the Board, for good cause shown, allows foran extension of time not to exceed thirty days, or unless the parties agreeto an extension of time. All of the costs of the arbitration shall be paidone-half by the wholesaler and one-half by the brewery. By entering into anagreement, the parties are deemed to have agreed to arbitration as providedin this subsection and, further, that such arbitration shall be governed bythe provisions of Chapter 21 (§ 8.01-577 et seq.) of Title 8.01.
C. In addition to the foregoing remedies, in any case in which a brewery isfound to have violated § 4.1-506, the Board may, upon request of thewholesaler involved, order the brewery to compensate the wholesaler for anylosses proximately resulting from such violation, including but not limitedto lost profits. Such losses shall be determined in the manner provided insubsection B and shall be calculated from the date of the violation by thebrewery to the date the brewery initiates remedial action pursuant to Boardorder.
(1978, c. 579, § 4-118.10; 1985, c. 549; 1987, c. 247; 1993, c. 866.)
A. In addition to any other sanctions which the Board is empowered by law toimpose, it may order that any act or practice constituting a violation ofthis chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery is found to have attempted oraccomplished an amendment, termination, cancellation, or refusal to continueor renew an agreement without good cause as defined in § 4.1-505, the Boardshall, upon the request of the wholesaler involved, enter an order requiringthat (i) the agreement remain in effect or be reinstated or (ii) the brewerypay the wholesaler reasonable compensation for the value of the agreement,which shall be determined in the manner provided for in subsection B.Reasonable compensation shall include, but is not limited to, the following:
1. The fair market value of the assets used by the wholesaler specificallyfor the purpose of distributing the brewery's products;
2. The cost of the wholesaler's inventory of the brewery's productscalculated as the sum of the net price paid by the wholesaler for theinventory;
3. The amount of any taxes paid by the wholesaler in connection withpurchasing the inventory;
4. The cost of transporting the inventory from the brewery to thewholesaler's warehouse, plus any handling costs; and
5. The goodwill of the wholesaler's business representing a value over andabove the fair market value of the foregoing tangible assets.
The compensation for such assets shall be subject to offset for (i) any sumsrecovered by the wholesaler in liquidation of the assets and (ii) the valuewhich the assets have to the wholesaler independent of their value for use indistributing the brewery's products.
B. In the event the brewery and the beer wholesaler are unable to agree onthe reasonable compensation to be paid for the value of the agreement, thematter shall be submitted to a panel of three arbitrators. The brewery andthe beer wholesaler shall each select one arbitrator and the two arbitratorsselected shall appoint a third arbitrator who shall be a person qualified byexperience to appraise the value of existing businesses. The decision of thearbitrators shall be rendered within ninety days from the time the matter issubmitted to arbitration unless the Board, for good cause shown, allows foran extension of time not to exceed thirty days, or unless the parties agreeto an extension of time. All of the costs of the arbitration shall be paidone-half by the wholesaler and one-half by the brewery. By entering into anagreement, the parties are deemed to have agreed to arbitration as providedin this subsection and, further, that such arbitration shall be governed bythe provisions of Chapter 21 (§ 8.01-577 et seq.) of Title 8.01.
C. In addition to the foregoing remedies, in any case in which a brewery isfound to have violated § 4.1-506, the Board may, upon request of thewholesaler involved, order the brewery to compensate the wholesaler for anylosses proximately resulting from such violation, including but not limitedto lost profits. Such losses shall be determined in the manner provided insubsection B and shall be calculated from the date of the violation by thebrewery to the date the brewery initiates remedial action pursuant to Boardorder.
(1978, c. 579, § 4-118.10; 1985, c. 549; 1987, c. 247; 1993, c. 866.)
A. In addition to any other sanctions which the Board is empowered by law toimpose, it may order that any act or practice constituting a violation ofthis chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery is found to have attempted oraccomplished an amendment, termination, cancellation, or refusal to continueor renew an agreement without good cause as defined in § 4.1-505, the Boardshall, upon the request of the wholesaler involved, enter an order requiringthat (i) the agreement remain in effect or be reinstated or (ii) the brewerypay the wholesaler reasonable compensation for the value of the agreement,which shall be determined in the manner provided for in subsection B.Reasonable compensation shall include, but is not limited to, the following:
1. The fair market value of the assets used by the wholesaler specificallyfor the purpose of distributing the brewery's products;
2. The cost of the wholesaler's inventory of the brewery's productscalculated as the sum of the net price paid by the wholesaler for theinventory;
3. The amount of any taxes paid by the wholesaler in connection withpurchasing the inventory;
4. The cost of transporting the inventory from the brewery to thewholesaler's warehouse, plus any handling costs; and
5. The goodwill of the wholesaler's business representing a value over andabove the fair market value of the foregoing tangible assets.
The compensation for such assets shall be subject to offset for (i) any sumsrecovered by the wholesaler in liquidation of the assets and (ii) the valuewhich the assets have to the wholesaler independent of their value for use indistributing the brewery's products.
B. In the event the brewery and the beer wholesaler are unable to agree onthe reasonable compensation to be paid for the value of the agreement, thematter shall be submitted to a panel of three arbitrators. The brewery andthe beer wholesaler shall each select one arbitrator and the two arbitratorsselected shall appoint a third arbitrator who shall be a person qualified byexperience to appraise the value of existing businesses. The decision of thearbitrators shall be rendered within ninety days from the time the matter issubmitted to arbitration unless the Board, for good cause shown, allows foran extension of time not to exceed thirty days, or unless the parties agreeto an extension of time. All of the costs of the arbitration shall be paidone-half by the wholesaler and one-half by the brewery. By entering into anagreement, the parties are deemed to have agreed to arbitration as providedin this subsection and, further, that such arbitration shall be governed bythe provisions of Chapter 21 (§ 8.01-577 et seq.) of Title 8.01.
C. In addition to the foregoing remedies, in any case in which a brewery isfound to have violated § 4.1-506, the Board may, upon request of thewholesaler involved, order the brewery to compensate the wholesaler for anylosses proximately resulting from such violation, including but not limitedto lost profits. Such losses shall be determined in the manner provided insubsection B and shall be calculated from the date of the violation by thebrewery to the date the brewery initiates remedial action pursuant to Boardorder.
(1978, c. 579, § 4-118.10; 1985, c. 549; 1987, c. 247; 1993, c. 866.)
