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MO SB837
Bill
AI Summary
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Repeals and replaces section 407.400, RSMo, to redefine "franchise" to specifically include commercial relationships between wholesalers licensed to sell intoxicating liquor and suppliers who manufacture or distribute alcohol brands
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Clarifies that a franchise arrangement includes relationships where wholesalers are granted rights to offer, sell, and distribute supplier brands with or without trademark licenses and regardless of whether there is community of interest in marketing
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Excludes from the definition of "franchise" persons engaged in warehouse sales, leased retail departments, places of original manufacture, and commercial relationships not contemplating establishment of a place of business within Missouri
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Declares legislative intent that section 407.400 be interpreted according to Missouri state court cases High Life Sales Company v. Brown-Forman Corporation (1992) and Brown-Forman Distillers Corp. v. McHenry (1978), and that a federal court interpretation in Missouri Beverage Company v. Shelton Brothers (2011) should be abrogated
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Provides definitions for "goods," "other property," "person," "pyramid sales scheme," and "sale or distribution" for purposes of the franchise law
Legislative Description
Modifies what is considered to be a franchise between alcohol wholesalers and suppliers
Last Action
No motion to override Governor's veto
9/12/2012