2006 Utah Code - 32A-11a-109 — Sale or transfer of supplier\'s business.

     32A-11a-109.   Sale or transfer of supplier's business.
     (1) (a) A successor to a supplier that after July 1, 1998, acquires a supplier's products or brands in this state shall be bound by all of the terms and conditions of each distributorship agreement with a wholesaler in this state that was in effect on the date on which the successor received the assets or rights of the previous supplier.
     (b) Notwithstanding Subsection (1)(a), a successor may contractually require its wholesalers to:
     (i) execute a new distributorship agreement; and
     (ii) comply with the successor's operational standards of performance if:
     (A) the operational standards of performance are consistent with this chapter;
     (B) the operational standards of performance are uniformly imposed by the successor on similarly situated wholesalers; and
     (C) the successor provides the wholesaler at least one year to:
     (I) execute a new distributorship agreement; and
     (II) comply with the operational standards of performance.
     (2) (a) For purposes of this section, "successor" means a supplier who obtains the distribution rights of a brand that a wholesaler distributes in this state pursuant to a distributorship agreement with another supplier who previously had the distribution rights of the brand.
     (b) For purposes of Subsection (2)(a), the successor may obtain the distribution right:
     (i) by any means, including:
     (A) merger;
     (B) purchase of corporate shares; or
     (C) purchase of assets; and
     (ii) from:
     (A) a supplier; or
     (B) a person acting in an official capacity who is not a supplier including a nominee, representative, or fiduciary.

Enacted by Chapter 328, 1998 General Session