TITLE 23

ALCOHOLIC BEVERAGES

CHAPTER 11

DISTRIBUTORS AND SUPPLIERS OF BEER

23-1107.  Supplier requirements upon amendment, cancellation or refusal to renew an agreement. Except as provided in sections 23-1105 and 23-1106, Idaho Code, a supplier may not amend, modify, terminate, cancel, discontinue, or refuse to renew an agreement with a distributor, or cause a distributor to resign from an agreement, unless the supplier has complied with the following requirements:

(1)  The supplier shall give written notice to the distributor, as provided in section 23-1108, Idaho Code.

(2)  The supplier acts in good faith. In any legal action, or dispute resolution proceeding, the supplier shall have the burden of proving that it acted in good faith.

(3)  The supplier has good cause. In any legal action, or dispute resolution proceeding, the supplier shall have the burden of proving that it has good cause. Good cause exists when all of the following have occurred:

(a)  The distributor has failed to comply substantially with essential and reasonable requirements imposed upon him by the agreement, if such requirements are not discriminatory, either by their terms or in the method of their enforcement, as compared with requirements imposed on other distributors in Idaho or similarly situated distributors in adjoining states and if such requirements are not in violation of any law or regulation.

(b)  The supplier first acquired knowledge of the failure described in subsection (3)(a) of this section not more than twenty-four (24) months before the date notification was given pursuant to the provisions of section 23-1108, Idaho Code.

(c)  The supplier has given written notice to the distributor, stating specifically the manner in which the distributor has failed to comply with the agreement.

(d)  The distributor was given adequate opportunity to use good faith efforts to correct the failure to comply with the agreement. Adequate opportunity shall be thirty (30) days after receipt of the supplier’s notice to submit a plan of corrective action to comply with the agreement and an additional ninety (90) days after the submission of a plan of corrective action to correct the failure in accordance with the plan.

History:

[23-1107, added 1993, ch. 312, sec. 1, p. 1154.]