123A.2 - DEFINITIONS.
123A.2 DEFINITIONS.
As used in this chapter, unless the context otherwise requires:
1. "Affected party" means a wholesaler, brewer, master
distributor, successor brewer, or any person that is a party to an
agreement.
2. "Agreement" means a contract or arrangement whether
expressed or implied, oral or written, for a definite or indefinite
period between a brewer and a wholesaler pursuant to which a
wholesaler has been granted the right to purchase, resell, and
distribute one or more brands of beer offered by a brewer, or a
contract or arrangement in which a brewer grants to a wholesaler a
license to use a trade name, trademark, service mark, or related
characteristic and in which there is a community of interest in the
marketing of the products of the brewer. An agreement exists when
one or more of the following occur:
a. A brewer has shipped beer to a wholesaler or accepted an
order for beer from a wholesaler.
b. A brewer purchases the right to manufacture a beer
product, the right to use the trade name for the product, or the
right to distribute a product from another brewer with whom the
wholesaler has an agreement.
3. "Beer" means any liquid capable of being used for beverage
purposes made by the fermentation of an infusion in potable water of
barley, malt, and hops with or without unmalted grains or
decorticated and degerminated grains, or made by the fermentation of,
or by distillation of the fermented products of fruit, fruit
extracts, or other agricultural products, containing more than
one-half of one percent of alcohol by volume but not more than five
percent of alcohol by weight, but not including mixed drinks or
cocktails mixed on the premises.
4. "Brand" means a word, name, group of letters, symbol, or a
combination of words, names, letters, or symbols adopted and used by
a brewer to identify a specific beer product, and to distinguish that
beer product from other beer products brewed or marketed by that
brewery or other breweries.
5. "Brand extension" means a brand which incorporates all or
a substantial part of the unique features of a preexisting brand of
the same brewery and which relies to a significant extent on the
goodwill associated with the preexisting brand. However, a general
corporate logo or symbol or an advertising message, whether appearing
on the product packaging or elsewhere, is not a brand, brand
extension, or part of a brand or brand extension.
6. "Brewer" means a person who is engaged in the manufacture
of beer for the purpose of sale, barter, exchange, or transportation,
a master distributor, or a fermenter, processor, bottler, packager,
or importer of beer, or a successor brewer.
7. "Designated member" means a deceased wholesaler's spouse,
child, grandchild, parent, brother, or sister, who is entitled to
inherit the deceased wholesaler's ownership interest under the terms
of the deceased wholesaler's will, other testamentary device, or the
laws of intestate succession. With respect to an incapacitated
individual having an ownership interest in a wholesaler,
"designated member" also means a person appointed by the court as
the conservator of the individual's property. "Designated
member" also includes the appointed and qualified personal
representative and the testamentary trustee of a deceased wholesaler.
8. "Good cause" exists if the wholesaler or affected party
has failed to comply with reasonable requirements which are imposed
upon the wholesaler or affected party through an agreement, which do
not discriminate either by their terms or in the methods of their
enforcement as compared with requirements imposed on other similarly
situated wholesalers by the brewer, and which are not in violation of
any law or administrative rule.
9. "Good faith" means honesty in fact and the observance of
reasonable commercial standards of fair dealing in the trade and
defined and interpreted under section 554.1201.
10. "Manager" means an individual named or designated by
agreement between the brewer and wholesaler, who is principally
responsible for the daily management of the wholesaler.
11. "Master distributor" means a wholesaler who acts in the
role of or in a similar capacity as a brewer or outside seller of one
or more brands of beer to other wholesalers on a regular basis in the
normal course of business.
12. "Reasonable standards and qualifications" means those
criteria applied by the brewer to similarly situated wholesalers
during a period of twenty-four months before a proposed change in a
successor manager of the wholesaler's business.
13. "Similarly situated wholesalers" means wholesalers of a
brewer that are of a generally comparable size, and operate in
markets with similar demographic characteristics, including
population size, density, distribution, and vital statistics, and
reasonably similar economic and geographic conditions.
14. "Successor brewer" means a person who succeeds to the
role of a brewer or master distributor to manufacture or distribute
one or more brands of beer whether by merger, purchase of corporate
shares, purchase of assets, or any other arrangement.
15. "Successor manager" means an individual named or
designated by agreement between a brewer and wholesaler who succeeds
to the role of manager who will be principally responsible for the
daily management of the wholesaler.
16. "Territory" means the geographic area of primary sales
responsibility designated by an agreement between a wholesaler and
brewer for one or more brands of beer of the brewer.
17. "Wholesaler" means a person, other than a vintner,
brewer, or bottler of beer, who sells, barters, exchanges, offers for
sale, possesses with intent to sell, deals, or traffics in beer. Section History: Recent Form
95 Acts, ch 101, §2; 2008 Acts, ch 1032, §23