123A.7 - REASONABLE COMPENSATION.
123A.7 REASONABLE COMPENSATION.
1. A brewer who cancels, fails to renew, or terminates any
agreement, or unlawfully denies approval of, or unreasonably
withholds consent to any assignment, transfer, or sale of a
wholesaler's business assets or voting stock or other equity
securities, except as provided in this chapter, shall pay the
wholesaler with which the brewer has an agreement pursuant to this
chapter, reasonable compensation for the fair market value of the
wholesaler's business with relation to the affected brand of beer.
The fair market value of the wholesaler's business shall include, but
not be limited to, its goodwill, if any.
2. If a brewer and a wholesaler are unable to mutually agree on
the reasonable compensation to be paid for the value of the
wholesaler's business, either party may maintain a civil action as
provided in section 123A.9, or the matter may, by mutual agreement of
the parties, be submitted to a three- member arbitration panel
consisting of one representative selected by the brewer but
unassociated with the brewer; one representative selected by the
wholesaler but unassociated with the wholesaler; and an impartial
arbitrator selected by the other two members from a list provided by
the American arbitration association, and the claim settled in
accordance with the rules provided by the American arbitration
association. Arbitration costs shall be paid one-half by the
wholesaler and one-half by the brewer. Arbitration shall be
conducted in accordance with the commercial arbitration rules of the
American arbitration association and the laws of this state, and
judgment upon the award rendered by the arbitrator may be entered in
any court having jurisdiction. The award of the arbitrator shall be
final and binding on the parties. Section History: Recent Form
95 Acts, ch 101, §7