2021 Kentucky Revised Statutes Chapter 244 - Alcoholic beverages -- prohibitions, restrictions, and regulations 244.585 Distributor of malt beverages not to sell outside his designated territory -- Contract between distributor and supplier.
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244.585
Distributor of malt beverages not to sell outside his designated
territory -- Contract between distributor and supplier.
(1)
(2)
(3)
(4)
(5)
It shall be unlawful for any distributor to sell any brand or product name of malt
beverage in the Commonwealth of Kentucky, except in the territory described
in a written agreement between the supplier or brewer and distributor,
authorizing sale by the distributor of that brand and product name within a
designated area, and within that designated area the distributor shall not refuse
to sell or offer reasonable service to licensed retailers during the normal
business hours of the distributor. Where a supplier or brewer sells several
brands and named products, the agreement need not apply to all brands and
named products sold by the supplier or brewer and may apply to only one (1)
brand and product name. No supplier or brewer shall provide by the written
agreement for the distribution of a brand or named product of malt beverages
to more than one (1) distributor for all or any part of the designated territory.
Upon request, all territorial agreements shall be filed with the department.
Each distributor shall comply with current, written quality control standards as
determined by the owner of the trademark of the brand of malt beverage,
provided those controls are:
(a) Normal industry practice;
(b) Reasonably related to the maintenance of quality control;
(c) Consistent with the provisions of this chapter and all administrative
regulations promulgated under this chapter; and
(d) Communicated to the distributor through written notice of them from the
owner.
A distributor may sell to only those licensed retailers, religious, charitable, or
fraternal organizations located within its designated geographical territory as
provided in this section and to the distributor's employees and to other
distributors of the same brand. No brand or product name of malt beverage
may be sold in the Commonwealth of Kentucky without prior written approval of
the brewer and supplier filed with the department.
A territorial designation in any agreement between a distributor and brewer or
supplier pursuant to this section shall be modified only in accordance with all
the rights and duties of the distributor and brewer or supplier contained in any
written agreement between them or by any other action of the brewer, supplier,
or distributor that is consistent with the terms of their agreement, and this
modification shall be filed pursuant to the provisions of this section. The board
shall require each party to verify that the level of service within the designated
territory will not be adversely affected by the modification. When a distributor is
prevented from selling or servicing retailers within its territory due to natural
disasters, labor disputes, or other causes beyond the distributor's control, the
distributor may allow another distributor of the same brand or named product of
malt beverages to sell and service that brand within its territory upon approval
of the brewer or supplier.
No provisions of any agreement shall expressly or impliedly establish or
maintain the resale price of any brand or product name of malt beverage by the
distributor.
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 62, sec. 111, effective June 29, 2017. -Amended 2014 Ky. Acts ch. 22, sec. 25, effective July 15, 2014. -- Amended
2010 Ky. Acts ch. 24, sec. 599, effective July 15, 2010. -- Amended 1982 Ky.
Acts ch. 117, sec. 1, effective July 15, 1982.
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