32B-14-304 (Effective 07/01/11) - Sale or transfer of business assets or ownership.
32B-14-304 (Effective 07/01/11). Sale or transfer of business assets or ownership.
(1) Without the prior written approval of a sale or transfer by the supplier:
(a) a wholesaler may not sell or transfer its business, or any portion of its business,including the distributorship agreement, to a successor in interest; and
(b) the owner of an interest in a wholesaler may not sell or transfer all or part of theowner's interest in the wholesaler to a successor in interest.
(2) A supplier may not unreasonably withhold or delay its approval of a sale or transfer,including the wholesaler's rights and obligations under the terms of the distributorshipagreement, if the person to be substituted meets reasonable standards that are imposed:
(a) by the supplier pursuant to the distributorship agreement; and
(b) on other wholesalers of that supplier of the same general class, taking into accountthe size and location of the sales territory and market to be served.
(3) Notwithstanding Subsection (1), a wholesaler may not violate Subsection32B-13-301(8).
Enacted by Chapter 276, 2010 General Session