244.604 Definitions for KRS 244.602 to 244.606.
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/ky/chapter-244/244-604A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in KRS 244.602 to 244.606, unless the context requires otherwise:
(1)"Distributor" means any person who distributes or sells at wholesale malt beverages
for the purpose of being sold at retail.
(2)"Existing distributor" means a distributor who distributes a particular brand or
brands of malt beverage at the time a successor brewer or importer acquires rights
to manufacture or import the particular brand or brands of malt beverage.
(3)"Good cause" means failure by a distributor to comply with the provisions of an
agreement as delineated therein, which provisions are not unconscionable. Good
cause shall not include:
(a)The failure or refusal of the distributor to engage in any trade practice or
activity which would violate federal or state law;
(b)The failure or refusal of the distributor to take any action which would be
contrary to these provisions;
(c)The sale or purchase of a brewer or importer, except as provided under KRS
244.606(2); and
(d)The implementation by a brewer or importer of a national or regional policy of
consolidation unless the policy:
1. Is reasonable, nondiscriminatory, and essential;
2. Results in a contemporaneous reduction in the number of a brewer's or
importer's distributors not only for a brand in this state, but also for that
brand in contiguous states or in a majority of the state in which the
brewer or importer sells that brand; and
3. Was previously disclosed in writing and in reasonable detail by the
brewer or importer implementing the policy to all affected distributors at
least one hundred eighty
(180)days prior to the implementation of the
policy.
The term "affected distributor" means distributors who may reasonably be expected
to experience a loss or diminishment of a right to distribute a brand, in whole or in
part as a consequence of a proposed consolidation policy.
(4)"Good faith" means honesty in fact and the observance of reasonable commercial
standard of fair dealing in the trade, as defined under KRS Chapter 355.
(5)"Malt beverage" means any fermented undistilled alcoholic beverage of any name or
description, manufactured from malt wholly or in part, or from any substitute for
malt, exceeding five-tenths of one percent (0.5%) alcohol by volume.
(6)"Successor" means a brewer or importer that acquires the right to manufacture or
import a particular brand or brands of malt beverage.
(7)"Successor's designee" means one
(1)or more distributors designated by a successor
to replace the existing distributor, for all or part of the existing distributor's territory,
in the distribution of a particular brand or brands of malt beverage.