Illinois General Assembly - Full Text of SB3103
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Full Text of SB3103  98th General Assembly




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1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Beer Industry Fair Dealing Act is amended by
5changing Section 1.1 as follows:
6    (815 ILCS 720/1.1)  (from Ch. 43, par. 301.1)
7    Sec. 1.1. As used in this Act:
8    (1) "Beer" means a beverage obtained by the alcoholic
9fermentation of an infusion or concoction of barley, or other
10grain, malt, and hops in water, and includes, among other
11things, beer, ale, stout, lager beer, porter, all beverages
12brewed or fermented wholly or in part from malt products, and
13the like; and for . For purposes of this Act only, the term
14"beer" shall also include malt beverage products containing
15less than one-half of 1% of alcohol by volume and marketed for
16adult consumption as an alternative beverage to beer.
17    (2) "Agreement" means any contract, agreement,
18arrangement, operating standards, or amendments to a contract,
19agreement, arrangement, or operating standards, the effect of
20which is to substantially change or modify the existing
21contract, agreement, arrangement, or operating standards,
22whether expressed or implied, whether oral or written, for a
23definite or indefinite period between a brewer and a wholesaler



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1pursuant to which a wholesaler has been granted the right to
2purchase, resell, and distribute as wholesaler or master
3distributor any brand or brands of beer offered by a brewer.
4The agreement between a brewer and wholesaler shall not be
5considered a franchise relationship.
6    (3) "Wholesaler" or "beer wholesaler" means any person,
7other than a manufacturer licensed under the Liquor Control Act
8of 1934, who is engaged in this State in purchasing, storing,
9possessing or warehousing any alcoholic liquors for resale or
10reselling at wholesale, whether within or without this State.
11    (4) "Brewer" means a person who is engaged in the
12manufacture of beer, a master distributor as defined in this
13Section, a successor brewer as defined in this Section, a
14non-resident dealer under the provisions of the Liquor Control
15Act of 1934, a foreign importer under the provisions of the
16Liquor Control Act of 1934, or a person who owns or controls
17the trademark, brand, or name of beer.
18    (4.5) "Brand" means any word, name, group of letters,
19symbols, or any combination thereof that is adopted and used by
20a brewer to identify a specific beer product and to distinguish
21that beer product from another beer product.
22    (4.7) "Brand extension" means any brand that incorporates
23all or a substantial part of the features of a pre-existing
24brand of the same brewer and that relies to a significant
25extent on the good will associated with the pre-existing brand.
26    (5) "Master Distributor" means a person who, in addition to



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1being a wholesaler, acts in the same or similar capacity as a
2brewer or outside seller of one or more brands of beer to other
3wholesalers on a regular basis in the normal course of
5    (6) "Successor Brewer" means any person who in any way
6obtains the distribution rights that a brewer, non-resident
7dealer, foreign importer, or master distributor once had to
8manufacture or distribute a brand or brands of beer whether by
9merger, purchase of corporate shares, purchase of assets, or
10any other arrangement, including but not limited to any
11arrangements transferring the ownership or control of the
12trademark, brand or name of the brand.
13    (7) "Person" means a natural person, partnership,
14corporation, trust, agency, or other form of business
15enterprise. Person also includes heirs, assigns, personal
16representatives and guardians.
17    (8) "Territory" or "sales territory" means the exclusive
18geographic area of primary sales responsibility designated by
19the agreement between a wholesaler and brewer for any brand,
20brands, or brand extensions of the brewer. The "territory" or
21"sales territory" designated by the agreement may not be
22designated by address or specific location unless such specific
23address or location is part of a general and broad territory or
24sales territory description. The designation of a territory or
25sales territory in violation of this subsection is prohibited
26by this Act and deemed discriminatory.



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1    (9) "Good cause" exists if the wholesaler or affected party
2has failed to comply with essential and reasonable requirements
3imposed upon the wholesaler or affected party by the agreement.
4The requirements may not be discriminating either by their
5terms or in the methods of their enforcement as compared with
6requirements imposed on other similarly situated wholesalers
7by the brewer. The requirements may not be inconsistent with
8this Act or in violation of any law or regulation.
9    (10) "Good faith" means honesty in fact and the observance
10of reasonable commercial standards of fair dealing in the trade
11as defined and interpreted under Section 2-103 of the Uniform
12Commercial Code.
13    (11) "Reasonable standards and qualifications" means those
14criteria applied by the brewer to similarly situated
15wholesalers during a period of 24 months before the proposed
16change in manager or successor manager of the wholesaler's
18    (12) "Affected party" means a wholesaler, brewer, master
19distributor, successor brewer, or any person that is a party to
20an agreement.
21    (13) "Signs" means signs described in Section 6-6 of the
22Liquor Control Act of 1934.
23    (14) "Advertising materials" means advertising materials
24described in Section 6-6 of the Liquor Control Act of 1934.
25(Source: P.A. 95-240, eff. 8-17-07; 95-789, eff. 8-7-08;
2696-662, eff. 8-25-09.)