16-3-505. Beer agreement of distributorship provisions.
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/mt/title-16/chapter-3/part-5/16-3-505·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
16-3-505 . Beer agreement of distributorship provisions.
(1)A brewery or beer importer and distributor must have a written agreement of distributorship that provides for purchase of the brewery or beer importer's products from the brewery or beer importer by the distributor.
(2)A beer agreement of distributorship must provide:
(a)that the brewer or beer importer or any officer, agent, or representative of any brewer or beer importer and the distributor involved shall mutually determine the size or extent of the area in which the distributor may sell or distribute the products of the brewer or beer importer to the retail licensees. The territory must be the territory agreed upon between the distributor and brewer or the distributor and beer importer and may not be changed without the mutual consent of both the distributor and brewer or the distributor and beer importer.
(b)the agreed-upon brands of the brewer or beer importer to be sold by the distributor;
(c)that the brewer or beer importer recognizes that the distributor is free to manage the distributor's business in the manner that the distributor considers best and that this prerogative vests in the distributor the exclusive right to establish selling prices, to select the brands that the distributor wishes to handle, and to determine the effort and resources that the distributor will exert to develop and promote the sale of the brewer's or beer importer's products handled by the distributor;
(d)a procedure for the review of alleged distributor deficiencies asserted by the brewer or beer importer to constitute good cause as provided in 16-3-502 , including the submission in writing to the distributor by the brewer or beer importer of the deficiencies, if the deficiencies are susceptible of correction and if the distributor desires to correct the deficiencies, and that a reasonable period of time must be given the distributor for rectification of the deficiencies prior to any notice of intent to terminate;
(e)a termination clause providing that the brewer or beer importer shall deliver, in writing, to the distributor a 60-day notice of intent to terminate the agreement, contract, or franchise;
(f)that all agreements between a brewer and a distributor are interpreted and governed by the laws of Montana and that those laws must be liberally construed to effectuate the remedial purpose of the protections of this part;
(g)that in any dispute resulting in litigation between a brewer or a beer importer and a distributor, the litigation must occur in a Montana court, either federal or state, unless that forum would create an unreasonable burden on any party, as determined by the court in which the litigation is commenced; and
(h)that all agreements between a brewer or a beer importer and a distributor must recognize the constitutional right to a jury trial as set forth in Article II, section 26, of the Montana constitution.