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NC H764
Bill
Status
4/6/2011
Primary Sponsor
Alma Adams
Click for details
AI Summary
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Clarifies that a franchise agreement applies to all supplier products under the same brand name, and wholesalers must sell malt beverages to all retailers in their territory at the same price at time of delivery.
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Prohibits suppliers from coercing wholesalers into electronic fund transfers, presenting agreements that waive compliance with the beer franchise law, threatening to deny approval of mergers or transfers, or discriminating in pricing between North Carolina wholesalers.
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Establishes that good cause for termination cannot be modified by franchise agreement language, and expands list of actions that do not constitute good cause (including desire to consolidate franchises, establishment of agreements with other suppliers, and unilaterally imposed performance standards).
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Allows wholesalers to seek monetary damages in addition to injunctive relief for wrongful termination, and enables wholesalers to merge with other wholesalers with supplier approval based on nondiscriminatory, material, and reasonable qualifications.
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Requires suppliers to pay damages if they unlawfully refuse to approve sales, transfers, or mergers, and authorizes the Alcoholic Beverage Control Commission to require mediation of franchise disputes before litigation proceeds.
Legislative Description
Beer Franchise Law Clarifications
Last Action
Assigned To Commerce and Job Development Subcommittee on Alcoholic Beverage Control
5/18/2011