Termination or Modification of Agreement With Wholesaler by Supplier Upon Written Notice — Conditions

  1. Law
  2. Tennessee Code
  3. Intoxicating Liquors
  4. Beer
  5. Beer Wholesaler-Supplier Relations
  6. Termination or Modification of Agreement With Wholesaler by Supplier Upon Written Notice — Conditions

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  1. A supplier may amend, modify, terminate, cancel, discontinue or fail to renew an agreement with a wholesaler immediately upon written notice given by the supplier as provided in § 57-5-508 only if any of the following occurs:
    1. Revocation of a governmental permit held by the wholesaler, whereby the wholesaler cannot service the wholesaler's sales territory for a period of more than sixty (60) days;
    2. Insolvency of the wholesaler, the filing of any petition by or against the wholesaler under any bankruptcy or receivership law, or the assignment for the benefit of creditors or dissolution or liquidation of the wholesaler, where such condition materially affects the wholesaler's ability to remain in business;
    3. Fraud by the wholesaler in dealings with the supplier or its products that adversely affects the interests of the supplier;
    4. Violation of § 57-6-104(f), if it was done at the direction or with the knowledge of a substantial stockholder or substantial partner. If a governmental permit held by a wholesaler is suspended temporarily so that the wholesaler cannot service its sales territory for a brand or brands, then upon agreement of the supplier of that brand or brands and the wholesaler whose permit has been suspended, another wholesaler who handles the same brand or brands can service the sales territory during the period of suspension; or
    5. The wholesaler has failed to pay for beer ordered and delivered in accordance with established terms with a supplier and fails to make full payment within five (5) business days after receipt of written notice of the delinquency and demand for immediate payment from the supplier.
  2. Where the wholesaler notifies the supplier in writing by certified mail of the wholesaler's intent to cease distribution of a brand sold by the supplier, the supplier can amend, modify, terminate, cancel, discontinue or fail to renew the agreement immediately with respect to that brand.


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