244.585 Distributor of malt beverages not to sell outside his designated

503 words·~2 min read·/ky/244-585

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

territory -- Contract between distributor and supplier.

(1)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

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.

(2)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.

(3)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.

(4)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.

(5)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.