IL SB3399

Brewers that cancel, terminate, fail to renew agreements, or unreasonably withhold consent to transfer a beer wholesaler's business must pay reasonable compensation for the fair market value of the wholesaler's business, including goodwill.

If a brewer's beer represents 10% or less of a wholesaler's total annual volume, the brewer must make a written offer of reasonable compensation, which the wholesaler has 30 days to accept or reject.

If the wholesaler rejects the brewer's offer, either party may elect expedited binding arbitration under American Arbitration Association commercial rules, to be concluded within 90 days, with costs split equally between parties.

If the brewer elects arbitration but the wholesaler rejects it, the wholesaler may accept the previous offer or pursue legal action under Section 9, and must retain the affected brand during the dispute unless a proceeding is not initiated within 90 days.

If reasonable compensation remains undetermined after 2 years and no injunction is issued, the brewer must make a good faith payment; if the brewer fails to ship ordered products beforehand, the wholesaler is entitled to injunctive relief, attorneys' fees, and punitive damages.