Utah Code 32B-14-304. Sale or transfer of business assets or ownership
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(1) Without the prior written approval of a sale or transfer by the supplier:
Terms Used In Utah Code 32B-14-304
- Distributorship agreement: means a written agreement between a supplier and a wholesaler pursuant to which the wholesaler has the right to purchase, resell, and distribute in a designated geographical area any brand of beer manufactured, imported, or distributed by the supplier. See Utah Code 32B-14-102
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- Sales territory: means the geographic area of distribution and sale responsibility designated by a distributorship agreement. See Utah Code 32B-14-102
- Supplier: means a person who sells an alcoholic product to the department. See Utah Code 32B-1-102
(1)(a) a wholesaler may not sell or transfer its business, or any portion of its business, including the distributorship agreement, to a successor in interest; and
(1)(b) the owner of an interest in a wholesaler may not sell or transfer all or part of the owner’s interest in the wholesaler to a successor in interest.
(2) A supplier may not unreasonably withhold or delay its approval of a sale or transfer, including the wholesaler’s rights and obligations under the terms of the distributorship agreement, if the person to be substituted meets reasonable standards that are imposed:
(2)(a) by the supplier pursuant to the distributorship agreement; and
(2)(b) on other wholesalers of that supplier of the same general class, taking into account the size and location of the sales territory and market to be served.
(3) Notwithstanding Subsection (1), a wholesaler may not violate Subsection 32B-13-301(8).