32B-14-302 (Effective 07/01/11) - Prohibited conduct of supplier.
32B-14-302 (Effective 07/01/11). Prohibited conduct of supplier.
(1) A supplier may not:
(a) induce or coerce, or attempt to induce or coerce, a wholesaler to engage in an illegalact or course of conduct;
(b) impose a requirement that is discriminatory by its terms or in the methods ofenforcement as compared to requirements imposed by the supplier on similarly situatedwholesalers;
(c) prohibit a wholesaler from selling a product of another supplier;
(d) fix or maintain the price at which a wholesaler may resell beer;
(e) fail to execute with each wholesaler of its brands a written distributorship agreement;
(f) require a wholesaler to accept delivery of beer or any other item that is not voluntarilyordered by the wholesaler;
(g) restrict or inhibit, directly or indirectly, the right of a wholesaler to participate in anorganization representing interests of wholesalers for a lawful purpose;
(h) require a wholesaler to participate in or contribute to a local, regional, or nationaladvertising fund or other promotional activity that:
(i) is not used for an advertising or promotional activity in the wholesaler's salesterritory; or
(ii) would require a contribution by the wholesaler in excess of the amounts specified inthe distributorship agreement;
(i) retaliate against a wholesaler that files a complaint with the department or theapplicable federal agency regarding an alleged violation by the supplier of a state or federalstatute or administrative rule;
(j) require without good cause a change in the manager of a wholesaler who haspreviously been approved by the supplier;
(k) if a wholesaler changes its approved manager, prohibit the change unless the newmanager fails to meet the reasonable standards for similarly situated wholesalers of the supplieras stated in the distributorship agreement; or
(l) refuse to deliver a beer product covered by a distributorship agreement to thewholesaler:
(i) in a reasonable quantity; and
(ii) within a reasonable time after receipt of the wholesaler's order.
(2) Notwithstanding Subsection (1)(l), the supplier may refuse to deliver a beer product ifthe refusal is due to:
(a) the wholesaler's failure to pay the supplier pursuant to the distributorship agreement;
(b) an unforeseeable event beyond the supplier's control;
(c) a work stoppage or delay due to a strike or labor problem;
(d) a bona fide shortage of materials; or
(e) a freight embargo.
Enacted by Chapter 276, 2010 General Session