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| Public Act 098-0843 | ||||
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AN ACT concerning business.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Beer Industry Fair Dealing Act is amended by | ||||
changing Section 1.1 as follows:
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(815 ILCS 720/1.1) (from Ch. 43, par. 301.1)
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Sec. 1.1. As used in this Act:
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(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
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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.
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(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,
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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.
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(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.
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(4) "Brewer" means a person who is engaged in the | ||
manufacture of beer,
a master distributor as defined in this
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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
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the trademark, brand, or name of beer.
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(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.
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(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
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business.
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(6) "Successor Brewer" means any person who in any way
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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.
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(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.
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(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.
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(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
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this Act or in violation of any law or regulation.
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(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.
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(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.
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(12) "Affected party" means a wholesaler, brewer, master | ||
distributor,
successor brewer, or any person that is a party to | ||
an agreement.
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(13) "Signs" means signs described in Section 6-6 of the | ||
Liquor Control
Act of 1934.
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(14) "Advertising materials" means advertising materials | ||
described in
Section 6-6 of the Liquor Control Act of 1934.
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(Source: P.A. 95-240, eff. 8-17-07; 95-789, eff. 8-7-08; | ||
96-662, eff. 8-25-09.)
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