Except as provided in Subsection (2) or (3), a supplier or wholesaler may not:
Terms Used In Utah Code 32B-14-201
Affected party: means a supplier or wholesaler who is a party to a distributorship agreement that a terminating party seeks to terminate or not renew. See Utah Code 32B-14-102
Distributorship agreement: means a written agreement between a supplier and a wholesaler pursuant to which the wholesaler has the right to purchase, resell, and distribute in a designated geographical area any brand of beer manufactured, imported, or distributed by the supplier. See Utah Code 32B-14-102
Good cause: means the material failure by a supplier or a wholesaler to comply with an essential, reasonable, and lawful requirement imposed by a distributorship agreement if the failure occurs after the supplier or wholesaler acting in good faith provides notice of deficiency and an opportunity to correct in accordance with 2. See Utah Code 32B-14-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Supplier: means a person who sells an alcoholic product to the department. See Utah Code 32B-1-102
Terminating party: means a supplier or wholesaler who:
(a)
is a party to a distributorship agreement; and
(b)
seeks to terminate or not renew the distributorship agreement. See Utah Code 32B-14-102
(a)
terminate a distributorship agreement; or
(b)
fail to renew a distributorship agreement.
(2)
A supplier or wholesaler may take an action prohibited by Subsection (1) if:
(a)
the supplier or wholesaler has good cause for the action; and
(b)
if notification is required by Section 32B-14-202:
(i)
the terminating party provides the affected party prior notification in accordance with Section 32B-14-202; and
(ii)
the affected party has not eliminated the reasons specified in the notification as the reasons for the action within 90 days after the date the notification is mailed in accordance with Section 32B-14-202.
(3)
A supplier may take an action prohibited by Subsection (1) if:
(a)
the supplier gives the wholesaler 30 days written notice before termination or nonrenewal;
(b)
the supplier discontinues production or discontinues distribution throughout the state of all brands of beer sold by the supplier to the wholesaler; and
(c)
the termination or nonrenewal does not violate the distributorship agreement.
