(a) A wholesaler shall give the supplier written notice of the wholesaler’s proposed transfer of the wholesaler’s business not less than thirty (30) days prior to the completion of the transfer, except in cases of transfer by inheritance, in which case the transferee shall give the supplier written notice of the transferee’s ownership interest within a reasonable time after the transfer is completed.

Terms Used In Tennessee Code 57-5-504

  • Agreement: means any agreement between a wholesaler and a supplier, oral or written, whereby a wholesaler is granted the right to purchase and sell a brand or brands of beer with an alcoholic content of five percent (5%) by weight or less sold by a supplier. See Tennessee Code 57-5-502
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • beverage: means and includes alcohol, spirits, liquor, wine, high alcohol content beer, and every liquid containing alcohol, spirits, wine, and high alcohol content beer and capable of being consumed by a human being, other than patent medicine or beer, as defined in §. See Tennessee Code 57-3-101
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Designated member: means :
    (A) The spouse, child, grandchild, parent, brother or sister of a deceased individual who owned an interest in a wholesaler. See Tennessee Code 57-5-502
  • License: means the license issued pursuant to this chapter. See Tennessee Code 57-3-101
  • Person: means any individual, partnership, corporation, association, syndicate, or any other combination of individuals. See Tennessee Code 57-5-502
  • Reasonable standards and qualifications: means those criteria established and consistently applied by a supplier to wholesalers in Tennessee and adjoining states who:
    (A) Have entered into, continued or renewed an agreement with the supplier during a period of twenty-four (24) months prior to the proposed transfer of the wholesaler's business. See Tennessee Code 57-5-502
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Supplier: means a manufacturer or importer of beer. See Tennessee Code 57-5-502
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Wholesaler: means a person or entity that sells beer to retailers, but does not include any manufacturer authorized to sell directly to retailers pursuant to §. See Tennessee Code 57-5-502
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) A supplier’s consent shall not be required for any transfer of the wholesaler’s business to a designated member or for any transfer of less than control of the wholesaler’s business; however, a supplier’s written consent shall be required for any transfer of the wholesaler’s business to a person other than a designated member.
(c) Notwithstanding subsection (b), written consent from a supplier shall be required for any transfer of the wholesaler’s business to a designated member or other transferee if any of the following conditions apply:

(1) The transferee or any owner of the transferee has been convicted of a felony under the United States Code or the laws of any state which would adversely affect the good will or interests of the wholesaler or supplier;
(2) The transferee or any owner of the transferee has had a previous alcoholic beverage license revoked or suspended by the regulatory agency of the United States government or any state, whereby service was interrupted for more than ninety (90) days;
(3) The transferee or any owner of the transferee is insolvent or has filed any voluntary or involuntary petition under any bankruptcy or receivership laws, or has executed an assignment for the benefit of creditors; or
(4) The transferee or any owner of the transferee has had any previous agreement with the supplier involuntarily terminated, cancelled, discontinued or not renewed by the supplier for good cause.
(d) If the transferee is a designated member, a supplier shall not interfere with, prevent or unreasonably delay the transfer of the wholesaler’s business. An unreasonable delay is one that exceeds thirty (30) days after the intended date of transfer as set forth in the notice required by subsection (a).
(e) If the transferee is not a designated member, a supplier may not withhold consent or unreasonably interfere with or delay the transfer if the transferee meets reasonable standards and qualifications which are nondiscriminatory and material. An unreasonable delay is one that exceeds thirty (30) days after the receipt of all material information reasonably requested. The supplier shall have the burden of proving that the proposed transferee does not meet such standards and qualifications.
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