OK Distribution Agreements Bill Dies in Conference

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Dying in conference committee, Senate Bill 422 sought to modify 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.

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