Montana Code 16-3-417. Supplier provisions
16-3-417. Supplier provisions. (1) An agreement of distributorship must provide that a table wine distributor shall:
Terms Used In Montana Code 16-3-417
- Agreement of distributorship: means a contract, agreement, commercial relationship, license, or other arrangement for a definite or an indefinite period of time between a supplier and a table wine distributor that provides for the sale of table wine by the supplier to the table wine distributor. See Montana Code 16-3-415
- 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.
- Good cause: means failure by a table wine distributor to comply with reasonable business requirements imposed, or sought to be imposed, by a supplier under the terms of an agreement of distributorship if the requirements are imposed on other similarly situated distributors either by the terms of their agreements or in the manner of their enforcement by the supplier. See Montana Code 16-3-415
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Supplier: means a winery or an importer of table wines that enters into or is a party to an agreement of distributorship with a table wine distributor. See Montana Code 16-3-415
(a)maintain the financial and competitive capability to efficiently and effectively distribute a supplier‘s products;
(b)maintain the quality and integrity of a supplier’s products in a manner set forth by the supplier;
(c)exert the table wine distributor’s best efforts to sell the supplier’s wines;
(d)merchandise the products in retail stores as agreed between the table wine distributor and the supplier; and
(e)give a supplier not less than 60 days’ written notice of the table wine distributor’s intent to terminate an agreement of distributorship.
(2)As provided in 16-3-416, a supplier may terminate an agreement of distributorship based on a deficiency or other good cause by giving 60 days’ prior written notice to the table wine distributor.
(3)A supplier may terminate an agreement of distributorship immediately and without notice if the reason for the termination is insolvency, assignment for the benefit of creditors, bankruptcy, or revocation or suspension for more than 14 days of a license to operate that is required by the state or the federal government.