Beer industry fair dealing act illinois

Public Act 0843 98TH GENERAL ASSEMBLY

 Public Act 098-0843  
SB3103 EnrolledLRB098 17735 JLS 52853 b
  AN ACT concerning business.  Be it enacted by the People of the State of Illinois, represented in the General Assembly:  Section 5. The Beer Industry Fair Dealing Act is amended by changing Section 1.1 as follows:  (815 ILCS 720/1.1) (from Ch. 43, par. 301.1)  Sec. 1.1. As used in this Act:  (1) "Beer" means a beverage obtained by the alcoholic fermentation of an infusion or concoction of barley, or other grain, malt, and hops in water, and includes, among other things, beer, ale, stout, lager beer, porter, all beverages brewed or fermented wholly or in part from malt products, and the like; and for . For purposes of this Act only, the term "beer" shall also include malt beverage products containing less than one-half of 1% of alcohol by volume and marketed for adult consumption as an alternative beverage to beer.  (2) "Agreement" means any contract, agreement, arrangement, operating standards, or amendments to a contract, agreement, arrangement, or operating standards, the effect of which is to substantially change or modify the existing contract, agreement, arrangement, or operating standards, whether expressed or implied, whether oral or written, for a definite or indefinite period between a brewer and a wholesaler  
pursuant to which a wholesaler has been granted the right to 
purchase, resell, and distribute as wholesaler or master 
distributor any brand or brands of beer offered by a brewer. 
The agreement between a brewer and wholesaler shall not be 
considered a franchise relationship. 
 (3) "Wholesaler" or "beer wholesaler" means any person, 
other than a manufacturer licensed under the Liquor Control Act 
of 1934, who is engaged in this State in purchasing, storing, 
possessing or warehousing any alcoholic liquors for resale or 
reselling at wholesale, whether within or without this State. 
 (4) "Brewer" means a person who is engaged in the 
manufacture of beer, a master distributor as defined in this 
Section, a successor brewer as defined in this Section, a 
non-resident dealer under the provisions of the Liquor Control 
Act of 1934, a foreign importer under the provisions of the 
Liquor Control Act of 1934, or a person who owns or controls 
the trademark, brand, or name of beer. 
 (4.5) "Brand" means any word, name, group of letters, 
symbols, or any combination thereof that is adopted and used by 
a brewer to identify a specific beer product and to distinguish 
that beer product from another beer product.
 (4.7) "Brand extension" means any brand that incorporates 
all or a substantial part of the features of a pre-existing 
brand of the same brewer and that relies to a significant 
extent on the good will associated with the pre-existing brand. 
 (5) "Master Distributor" means a person who, in addition to 
 
being a wholesaler, acts in the same or similar capacity as a 
brewer or outside seller of one or more brands of beer to other 
wholesalers on a regular basis in the normal course of 
business. 
 (6) "Successor Brewer" means any person who in any way 
obtains the distribution rights that a brewer, non-resident 
dealer, foreign importer, or master distributor once had to 
manufacture or distribute a brand or brands of beer whether by 
merger, purchase of corporate shares, purchase of assets, or 
any other arrangement, including but not limited to any 
arrangements transferring the ownership or control of the 
trademark, brand or name of the brand. 
 (7) "Person" means a natural person, partnership, 
corporation, trust, agency, or other form of business 
enterprise. Person also includes heirs, assigns, personal 
representatives and guardians. 
 (8) "Territory" or "sales territory" means the exclusive 
geographic area of primary sales responsibility designated by 
the agreement between a wholesaler and brewer for any brand, 
brands, or brand extensions of the brewer. The "territory" or 
"sales territory" designated by the agreement may not be 
designated by address or specific location unless such specific 
address or location is part of a general and broad territory or 
sales territory description. The designation of a territory or 
sales territory in violation of this subsection is prohibited 
by this Act and deemed discriminatory. 
 
 (9) "Good cause" exists if the wholesaler or affected party 
has failed to comply with essential and reasonable requirements 
imposed upon the wholesaler or affected party by the agreement. 
The requirements may not be discriminating either by their 
terms or in the methods of their enforcement as compared with 
requirements imposed on other similarly situated wholesalers 
by the brewer. The requirements may not be inconsistent with 
this Act or in violation of any law or regulation. 
 (10) "Good faith" means honesty in fact and the observance 
of reasonable commercial standards of fair dealing in the trade 
as defined and interpreted under Section 2-103 of the Uniform 
Commercial Code. 
 (11) "Reasonable standards and qualifications" means those 
criteria applied by the brewer to similarly situated 
wholesalers during a period of 24 months before the proposed 
change in manager or successor manager of the wholesaler's 
business. 
 (12) "Affected party" means a wholesaler, brewer, master 
distributor, successor brewer, or any person that is a party to 
an agreement. 
 (13) "Signs" means signs described in Section 6-6 of the 
Liquor Control Act of 1934. 
 (14) "Advertising materials" means advertising materials 
described in Section 6-6 of the Liquor Control Act of 1934. 
(Source: P.A. 95-240, eff. 8-17-07; 95-789, eff. 8-7-08; 
96-662, eff. 8-25-09.)