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MO SB365

Bill

Status

Introduced

2/20/2013

Primary Sponsor

Mike Parson

Click for details

Origin

Senate

2013 Regular Session

AI Summary

  • Clarifies the definition of "franchise" to specifically include commercial relationships between wholesalers and suppliers of intoxicating liquor, with or without trademark/tradename grants.

  • Declares legislative intent that section 407.400 was correctly interpreted in High Life Sales Company v. Brown-Forman Corporation (823 S.W. 2d 493) and Brown-Forman Distillers Corp. v McHenry (566 S.W. 2d 194), rather than in Missouri Beverage Company, Inc. v. Shelton Brothers, Inc. (796 F. Supp. 2d 988).

  • Creates exemption for suppliers selling less than 2,500 cases of distilled spirits or less than 10,000 cases of wine annually from "good cause" requirement for franchise termination, but requires payment of fair market value for lost distribution rights.

  • Establishes different fair market value calculations based on supplier volume thresholds: wine suppliers selling under 1,000 cases receive 2 times gross profit plus inventory cost; larger suppliers use 30-day negotiation followed by mandatory arbitration if parties cannot agree.

  • Allows wholesalers to sue suppliers for violations and recover damages, attorney's fees, and costs; permits suppliers to defend terminations by proving good faith and good cause, defined as substantial non-compliance with essential provisions or revocation of federal permits.

Legislative Description

Modifies what is a considered to be a franchise between alcohol wholesalers and suppliers

Last Action

SCS Voted Do Pass S Commerce, Consumer Protection, Energy and the Environment Committee - (1630S.03C)

4/9/2013

Committee Referrals

Commerce, Consumer Protection, Energy And The Environment2/28/2013

Full Bill Text

No bill text available