Termination or Modification of Agreement With Wholesaler by Supplier in Not Less Than 30 Days 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 in Not Less Than 30 Days Upon Written Notice — Conditions

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A supplier may amend, modify, terminate, cancel, discontinue or fail to renew an agreement with a wholesaler not less than thirty (30) days after written notice is given by the supplier as provided in §57-5-508 if any of the following events occur:

  1. The supplier discontinues production or discontinues distribution in this state of a brand sold by the supplier to the wholesaler.
    1. Nothing in this section shall prohibit a supplier from conducting test marketing of a new brand of beer or a brand of beer which is not currently being sold in this state; provided, that the supplier has notified the state in writing of its plans to conduct test marketing, which notice shall describe the market area in which the test shall be conducted, the name or names of the wholesaler or wholesalers who will be selling the beer, the name or names of the brand of beer being tested, and the period of time, not to exceed eighteen (18) months, during which the testing will take place.
    2. If a supplier discontinues production or distribution in this state of a brand pursuant to this section, then that supplier cannot reintroduce that brand into this state for a period of twelve (12) months after providing the written notice required by this section.
    3. Whenever a supplier discontinues production or distribution in this state of a brand, the supplier shall be required at the wholesaler's request to purchase from the wholesaler any unsold inventory of the brand; or
  2. A stockholder or a partner of the wholesaler has been convicted of a felony under the United States Code or the laws of any state which would adversely affect the good will or interests of the wholesaler or supplier. If another stockholder or other stockholders, or partner or partners, or a designated member or members notifies the supplier in writing within thirty (30) days after the conviction of an intent to purchase the partnership interest or the stock of the offending stockholder or partner and purchases the interest or stock within a reasonable time after notice is given, then this subdivision (2) shall not apply. Any purchase of an interest or stock pursuant to this subdivision (2) will be subject to the requirements of supplier consent contained in § 57-5-504.


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