2012 Arkansas Code
Title 3 - Alcoholic Beverages
Chapter 2 - Administration and Enforcement
Subchapter 4 - -- Distribution
§ 3-2-405 - Request to change wholesalers -- Notice -- Objections -- Hearing -- Disposition of proceedings.

(a) (1) At the same time that the original wholesaler change request is filed with the Director of the Alcoholic Beverage Control Division, a copy thereof shall be mailed by the distiller, manufacturer, importer, or producer to each wholesaler who may be affected by the proposed changes. Immediately upon receipt of any wholesaler change request, the director shall notify the currently designated wholesaler of the request by certified mail.

(2) Within fifteen (15) days after receipt of such notice by the affected wholesaler, any such wholesaler or party required to be given notice by this subchapter may interpose written objections thereto. Such written objections shall be filed in the office of the Alcoholic Beverage Control Division, and copies thereof shall be served by the objecting party upon the party proposing the change and upon all wholesalers who may be affected by the proposed change.

(b) Upon the receipt of an objection from any party, or upon his own motion, the director shall hold a hearing, after providing due notice to all parties concerned, for the purpose of determining the truth of any matters of fact alleged by any party and determining whether the proposed changes are based upon sufficient cause and are otherwise consistent with the policies set out in § 3-2-401. If it is determined from the evidence educed at said hearing that the brand or label involved is the same as, or similar to, or is such a modification of, substitution of, upgrade of, or extension of a brand or label which has already been registered by the distiller, manufacturer, importer, or producer, so as to render it unjust or inequitable, without cause being shown, to designate the brand or label to a wholesaler different from the wholesaler designated for the brand or label being so modified, substituted, upgraded, or extended, then such request shall be denied; provided, however, that nothing herein shall be construed or prevent the distiller, manufacturer, importer, or producer from treating the matter as a desire to change wholesalers and from proceeding under the provisions of § 3-2-404, either before or after such determination.

(c) No proposed change will be approved by the director which is based upon the failure or refusal of a wholesaler to comply with any demand or request of a distiller, manufacturer, importer, or producer if such demand or request would result in a violation of any provision of federal or state law or regulation. During such fifteen-day objection period or until the proposed changes have been finally approved by the director, the party proposing the change shall continue to supply the designated wholesaler, upon commercially reasonable terms, such reasonable quantities of the brand involved as the wholesaler may require. If, at any time, the director finds a distiller, manufacturer, importer, or producer is not shipping the wholesaler a reasonable amount of merchandise, he or she may withdraw approval of all brands registered by such parties within the state.