2005 Idaho Code - 23-1103 — PROHIBITED ACTS

                                  TITLE  23
                             ALCOHOLIC BEVERAGES
                                  CHAPTER 11
                      DISTRIBUTORS AND SUPPLIERS OF BEER
    23-1103.  PROHIBITED ACTS. The following are prohibited under the
provisions of this chapter:
    (1)  A distributor shall not:
    (a)  Transfer the distributor's business without giving the supplier
    written notice of the proposed transfer of the business as required under
    the provisions of this chapter.
    (b)  Transfer the distributor's business without receiving the supplier's
    written approval for the proposed transfer, where required by an agreement
    and consistent with the provisions of this chapter.
    (c)  Distribute, sell or deliver beer to a retailer whose premises are
    situated outside the geographic territory agreed upon by the distributor
    and the supplier, as the area in which the distributor will sell beer
    purchased from the supplier, without the consent of the supplier and the
    distributor who has been assigned such territory by the supplier.
    (2)  A supplier shall not, directly or indirectly, or through an affiliate
or subsidiary:
    (a)  Require any distributor to do any illegal act or to violate any law
    or regulation either by threatening to amend, modify, cancel, terminate,
    or refuse to renew any agreement existing between the supplier and the
    distributor, or by any other means.
    (b)  Require any distributor to accept delivery of any beer or other
    commodity which has not been ordered by the distributor or, if ordered,
    has been canceled by the distributor in accordance with reasonable
    cancellation procedures of the supplier. Provided however, a supplier may
    impose reasonable inventory requirements upon a distributor if the
    requirements are made in good faith and are generally applied to other
    distributors in Idaho and similarly situated distributors in adjoining
    states having an agreement with the supplier.
    (c)  Withhold delivery of beer ordered by a distributor or change a
    distributor's allocation of a brand or brands by the supplier if the
    withholding or change is not made in good faith.
    (d)  Engage in any conduct that requires a distributor to fix or maintain
    the resale prices at which the distributor sells products received from
    the supplier.
    (e)  Require a distributor to purchase one (1) or more brands of beer or
    other products in order for the distributor to purchase another brand or
    brands of beer. Provided however, that if a distributor has agreed to
    distribute a brand or brands of beer before the effective date of this
    chapter, the distributor shall continue to distribute the brand or brands
    of beer in conformance with the provisions of this chapter.
    (f)  Require a distributor to assent to any unreasonable requirement,
    condition, understanding or term of an agreement which limits the
    distributor's right to sell a brand or brands of beer or other products of
    any other supplier.
    (g)  Require a distributor to submit financial reports or other specific
    financial or sales information regarding products sold by the distributor,
    other than those of the supplier, as a condition of renewal or
    continuation of an agreement.
    (h)  Require a distributor to terminate the designation of an individual
    as a manager or successor manager of a distributor, or refuse to approve
    the designation of an individual as manager or successor manager, unless
    the manager or successor manager fails to meet reasonable standards or
    qualifications for such position which standards or qualifications are
    nondiscriminatory and are applied uniformly to all distributors similarly
    situated. In any legal action, or other dispute resolution proceedings,
    challenging such termination or designation, the distributor shall have
    the burden of proving that the termination of the manager or successor
    manager was required by the supplier or that the supplier refused to
    approve the designation of an individual as manager or successor manager.
    Upon the distributor making such prima facie showing, the supplier shall
    have the burden of proving that such person fails to meet
    nondiscriminatory and reasonable standards and qualifications.
    (i)  Take any retaliatory action against a distributor who, with just
    cause, files a complaint with any regulatory body or in any court of law
    regarding an alleged violation of federal, state or local law or of any
    administrative rule by the supplier.