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Distributor sues Hop Valley

July 6, 2014

Distributor sues Hop Valley | News | The Register-Guard | Eugene, Oregon.

Sounds like Oregon is similar to Georgia. In Georgia, a brewery (or any supplier of alcohol) must make what we refer to as the regulatory designation, in which the supplier designates a wholesaler as the exclusive distributor of the supplier’s products in a certain territory. This designation is made on a Georgia Department of Revenue form and filed with the department. Separately, a supplier and wholesaler can enter in a distribution agreement – the contractual designation -, with all kinds of various terms and conditions. As such, and similar to the case referenced in the article, things get interesting when a supplier wants to terminate its relationship with a wholesaler under the terms of the distribution agreement. There are ways to set up distribution agreements (depending on the degree of leverage) to make for a stronger case for the supplier, should it want to terminate under the contract. If this case doesn’t settle, it will be interesting to see how the court handles it. 

 

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