Bill Summary for S 745 (2011-2012)
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| View NCGA Bill Details | 2011-2012 Session |
TO PRESERVE THE THREE TIER DISTRIBUTION SYSTEM FOR MALT BEVERAGES IN NORTH CAROLINA BY CLARIFYING PROVISIONS OF THE BEER FRANCHISE LAW TO PROVIDE: A FRANCHISE AGREEMENT APPLIES TO ALL SUPPLIER PRODUCTS UNDER THE SAME BRAND NAME; A WHOLESALER MUST SELL MALT BEVERAGES TO ALL RETAILERS IN ITS TERRITORY AT THE SAME PRICE AT THE TIME OF DELIVERY; PROHIBITED ACTS OF SUPPLIERS WITH RESPECT TO THEIR DEALINGS WITH WHOLESALERS; GOOD CAUSE FOR TERMINATION MAY NOT BE MODIFIED BY AN AGREEMENT THAT DEFINES GOOD CAUSE IN A MANNER DIFFERENT THAN PROVIDED BY STATE LAW; CERTAIN ACTS THAT DO NOT AMOUNT TO GOOD CAUSE FOR TERMINATION OF A FRANCHISE; REMEDIES FOR A SUPPLIER'S WRONGFUL TERMINATION OF A FRANCHISE; INCLUSION OF A WHOLESALER MERGER, THE FACTORS THAT MAY BE CONSIDERED BY THE SUPPLIER IN APPROVING A MERGER OR TRANSFER, AND REMEDIES FOR UNLAWFUL REFUSAL TO APPROVE A MERGER OR TRANSFER; THE BEER FRANCHISE LAW MAY NOT BE WAIVED BY AN AGREEMENT CONTRARY TO STATE LAW; AND MEDIATION OF DISPUTES ARISING UNDER THE BEER FRANCHISE LAW.Intro. by Allran.
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Bill summary
Senate amendments make the following changes to 2nd edition. Amendment #1 amends proposed GS 18B-1304(10) to clarify that a supplier may not discriminate, as specified, against one North Carolina wholesaler over another North Carolina wholesaler based on the quantity of malt beverages purchased or for any other reason; discriminate does not include freight and transportation costs, price promotions on malt beverage products in a particular market not to exceed 14 consecutive days, point-of-sale advertising materials, sponsorships, consumer specialty items, consumer sweepstakes, and novelties. Allows a supplier to match competitor prices in the entire state or particular market. Makes a clarifying change.
Amendment #2 amends proposed GS 18B-1305B(d)(5) to clarify that when a supplier has implemented standards on a national basis and those standards are consistently applied to all similarly situated North Carolina wholesalers in a nondiscriminatory manner, failure of a wholesaler to meet such standards may show cause to terminate.
Amendment #3 clarifies that the act is effective when it becomes law, and applies to all transactions on or after that date.