Except as provided in sections 23-1105 and 23-1106, Idaho Code, a supplier may not amend, modify, terminate, cancel, discontinue, or refuse to renew an agreement with a distributor, or cause a distributor to resign from an agreement, unless the supplier has complied with the following requirements:
(1)  The supplier shall give written notice to the distributor, as provided in section 23-1108, Idaho Code.
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Terms Used In Idaho Code 23-1107

  • Agreement: means any agreement between a distributor and a supplier, whether oral or written, whereby a distributor is granted the right to purchase a brand, or brands, of beer sold by a supplier and to resell such products within the state of Idaho. See Idaho Code 23-1102
  • Distributor: means a business entity, whether sole proprietorship, partnership, corporation, association, syndicate, or any other combination of persons, licensed by the state of Idaho to sell beer to retailers. See Idaho Code 23-1102
  • Good faith: means honesty in fact in the conduct or transaction involved and the observance of reasonable commercial standards of fair dealing in the trade, as such term and standards are defined in, and interpreted pursuant to, the uniform commercial code, title 28, Idaho Code. See Idaho Code 23-1102
  • modify: means any alteration or change in the agreement, which causes a material change in the distributor’s business or relationship with the supplier, and which alteration or change does not apply to all distributors in the state of Idaho who distribute supplier’s products. See Idaho Code 23-1102
  • Supplier: means any person, either within or outside the state of Idaho, who enters into an agreement with a distributor for the sale of beer to such distributor with the intent that such products will be resold by the distributor to retailers within the state of Idaho. See Idaho Code 23-1102
(2)  The supplier acts in good faith. In any legal action, or dispute resolution proceeding, the supplier shall have the burden of proving that it acted in good faith.
(3)  The supplier has good cause. In any legal action, or dispute resolution proceeding, the supplier shall have the burden of proving that it has good cause. Good cause exists when all of the following have occurred:
(a)  The distributor has failed to comply substantially with essential and reasonable requirements imposed upon him by the agreement, if such requirements are not discriminatory, either by their terms or in the method of their enforcement, as compared with requirements imposed on other distributors in Idaho or similarly situated distributors in adjoining states and if such requirements are not in violation of any law or regulation.
(b)  The supplier first acquired knowledge of the failure described in subsection (3)(a) of this section not more than twenty-four (24) months before the date notification was given pursuant to the provisions of section 23-1108, Idaho Code.
(c)  The supplier has given written notice to the distributor, stating specifically the manner in which the distributor has failed to comply with the agreement.
(d)  The distributor was given adequate opportunity to use good faith efforts to correct the failure to comply with the agreement. Adequate opportunity shall be thirty (30) days after receipt of the supplier’s notice to submit a plan of corrective action to comply with the agreement and an additional ninety (90) days after the submission of a plan of corrective action to correct the failure in accordance with the plan.