Distribution Agreements Bill Passes Oklahoma House

Share Post

Amended and passing the House, Senate Bill 422 modifies the procedures that must be in place for a brewer to terminate a distributor agreement with any beer distributor to include requiring the brewer to establish good cause for such termination. The measure also requires the arbitration panel to order that 100% of arbitration costs be paid by the smaller brewer if the panel determines that the small brewer’s payment upon termination was not a good faith estimate of the fair market value. The measure also exempts brewers that produce less than twenty-five thousand barrels of beer annually from the termination provisions.