AI-assisted research summary: This section bans beverage manufacturers, brew pubs, and beverage vendors from pressuring wholesale distributors, forcing sales terms, restricting territory-based competition, fixing distributor prices, retaliating for complaints, or requiring waiver of chapter rights.
No beverage manufacturer license holder, brew pub, or beverage vendor shall: I. Induce, coerce, or attempt to induce or coerce, any wholesale distributor licensee to accept delivery of any beverage or any other commodity which has not been ordered by the wholesale distributor, provided that recommendation, endorsement, exposition, persuasion or argument shall not be deemed to constitute inducement or coercion prohibited under this paragraph. II. Require a wholesale distributor to assent to any condition, stipulation, or provision limiting the wholesale distributor's right to sell the product of any other beverage manufacturer, brew pub, or beverage vendor anywhere in the state, provided that the acquisition of the product of another beverage manufacturer, brew pub, or beverage vendor in the reasonable judgment of the beverage manufacturer, brew pub, or beverage vendor, would materially impair the quality of service or quantity of sales of the existing brand or label of the beverage manufacturer, brew pub, or beverage vendor seeking to impose the condition, stipulation or provision. III. After designating a sales territory for which any wholesale distributor shall be primarily responsible, enter into any agreement with any other wholesale distributor for the purpose of establishing an additional agreement for its brand or label in the same territory served by a wholesale distributor with that particular brand or label, or file with the commission for self-distribution in the designated territory. No wholesale distributor, brew pub, or beverage manufacturer shall make any sale or delivery of a beverage to any on-premises or off-premises licensee whose place of business is not within the territory designated. IV. Unreasonably require or prohibit any change in management or personnel of any wholesale distributor. V. Unreasonably withhold consent to any assignment, transfer or sale of the wholesale distributor's business. VI. Fix or maintain the price at which a wholesale distributor sells any product, whether by means of a term or condition of an agreement or otherwise. VII. Induce, coerce, or attempt to induce or coerce, any wholesale distributor to do any illegal act or thing by threatening to amend, cancel, terminate, or refuse to renew any agreement existing between a beverage manufacturer, brew pub, or beverage vendor and a wholesale distributor. VIII. Take retaliatory action against a wholesale distributor who files or manifests an intention to file a complaint of alleged violation of state or federal law or regulation by the beverage manufacturer, brew pub, or beverage vendor with the appropriate state or federal regulatory authority. Retaliatory action shall include, but shall not be limited to, refusal without good cause to continue the agreement. IX. Require any wholesale distributor to waive compliance with any provisions of this chapter. In all cases the rights of free association of both beverage manufacturers, brew pubs, or beverage vendors and wholesale distributors for any lawful purpose shall remain unrestricted and uninhibited. Source: Source. 1990, 255:1. 1996, 289:10, 11. 1999, 169:10. 2003, 231:39-41, eff. July 1, 2003.