North Carolina Revamps Beer Franchising Laws
The bill also restricts suppliers' freedom to contract with distributors. A beer supplier cannot alter or terminate a franchise agreement without good cause, and, under the bill, the meaning of "good cause" may not be modified by contract. Plus, if a supplier wrongfully terminates a franchise agreement, he may be liable for monetary damages in addition to injunctive relief. The ratified version of S 745 is more supplier-friendly than previous drafts of the bill, which elicited energetic opposition from numerous major brewers. WRAL.com notes that, after the bill passed the house in a near-unanimous (113-1) vote on Wednesday, legislators attended "The Growler" - an annual event hosted by The North Carolina Beer and Wine Wholesalers. Now that the Senate has ratified S 745, all that remains is for Governor Perdue to sign it into law.