Wholesale liquor franchises, discrimination prohibited, when
This law is about alcohol suppliers and the wholesalers who buy from them to resell. If a supplier gives the same brand to more than one wholesaler, the supplier cannot treat those wholesalers differently. A supplier also cannot end, change, or refuse to renew a wholesaler's deal without a good reason. A wholesaler can sue a supplier who breaks these rules and can get money for the harm caused, plus legal fees.
407.413. liquor s, discrimination prohibited, when — not to alter franchise without cause — defined — to franchise , when — applicable when — substantially amended defined. — 1. If more than one franchise for the same brand or brands of is granted to different in this state, it is a violation of sections 407.400 to 407.420 for any supplier to between the wholesalers with respect to any of the terms, provisions, and conditions of these franchises.
2. the terms, provisions and conditions of any franchise, no supplier shall terminate or refuse to continue or change substantially the condition of any franchise with the unless the supplier has first established for such , or change.
3. Any wholesaler may bring an in a against a supplier for violation of any of the provisions of this section and may recover damages by such wholesaler together with the costs of the action and reasonable .
4. In any action brought by a wholesaler against a supplier for termination, noncontinuance or substantial change in violation of the provisions of this section, it is a complete for the supplier to prove that the termination, noncontinuance or change was done and for good cause.
5. As used in this section, "good faith" is the duty of each to any franchise and all officers, employees or agents thereof to act in a fair and manner towards each other, and "good cause" means the following:
(1) Failure by the wholesaler to comply substantially with the provisions of an agreement or understanding with the supplier, which provisions are both essential and reasonable;
(2) Use of or failure to observe reasonable commercial standards of fair dealing in the trade; or
(3) or for more than thirty-one days of a beer wholesaler's or of any state or local required of a beer wholesaler for the normal operation of its business.
6. As to s and beer wholesalers, the provisions of this section shall only apply to agreements entered into on or after August 28, 1998, and to agreements which are renewed or substantially amended on or after August 28, 1998. As used in the preceding sentence, "substantially amended" means a written amendment that the fundamental business relationship between brewer and wholesaler. "Substantially amended" does not include changes or amendments that are contemplated in writing by the parties to an agreement.
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Source & history notes
(L. 1975 H.B. 810 § 4, A.L. 1998 H.B. 957 & 1063) (1978) Amendment adding this section to bill during passage did not violate constitutional requirements that bill contain no more than one subject and that it be clearly expressed in the title, and that bill was so amended in its passage as to change its original purpose. Brown-Forman Distillers Corp. v. McHenry (Mo.), 556 S.W.2d 194.
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