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Statutes Text

Article - Alcoholic Beverages




§5–101.

    (a)    In this subtitle the following words have the meanings indicated.

    (b)    “Beer distributor” means a person that imports or causes to be imported into the State, or purchases or causes to be purchased in the State, beer for sale or resale to a retail dealer licensed under this article without regard to whether the business of the person is conducted under a beer franchise agreement or another form of agreement with a beer manufacturer.

    (c)    “Beer franchise agreement” means:

        (1)    a commercial relationship between a beer distributor and beer manufacturer that:

            (i)    is of a definite or indefinite duration; and

            (ii)    is not required to be in writing;

        (2)    a relationship in which a beer manufacturer grants a beer distributor the right to offer and sell the brands of beer offered by the beer manufacturer;

        (3)    a relationship in which a beer distributor, as an independent business, constitutes a component of a beer manufacturer’s distribution system;

        (4)    a relationship in which a beer distributor’s business is substantially associated with a beer manufacturer’s brand, advertising, or another commercial symbol that designates the beer manufacturer;

        (5)    a relationship in which a beer distributor’s business relies substantially on a beer manufacturer for the continued supply of beer; or

        (6)    a written or oral arrangement of definite or indefinite duration in which:

            (i)    a beer manufacturer grants to a beer distributor the right to use a trade name, trademark, service mark, or related characteristic; and

            (ii)    there is a community of interest in the marketing of goods or services at wholesale or retail, by lease, or by another method.

    (d)    “Beer manufacturer” means:

        (1)    a brewer, fermenter, processor, bottler, or packager of beer located in or outside the State; or

        (2)    a person located in or outside the State that enters into a beer franchise agreement with a beer distributor doing business in the State.

    (e)    “Fair market value” means the price at which an asset would change hands between a willing seller and a willing buyer when:

        (1)    neither is acting under any compulsion; and

        (2)    both have knowledge of all of the relevant facts.

    (f)    “Franchisee” means:

        (1)    a beer distributor to whom a beer franchise agreement is granted or offered; or

        (2)    a beer distributor that is a party to a beer franchise agreement.

    (g)    “Franchisor” means a beer manufacturer that:

        (1)    enters into a beer franchise agreement with a beer distributor; or

        (2)    is a party to a beer franchise agreement.

    (h)    “Sales territory” means the area of sales responsibility designated by a beer franchise agreement for the brand or brands of beer of a beer manufacturer.



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