California CodesBusiness and Professions Code - BPCDivision 9 — Alcoholic BeveragesChapter 12 — Beer Price Posting and Marketing RegulationsSection 25000.7

(a) Notwithstanding the provisions of any agreement for the sale or distribution of beer between a beer manufacturer and beer wholesaler, no sale or distribution agreement shall be terminated solely for a beer wholesaler’s failure to meet a sales goal or quota that is not commercially reasonable under the prevailing market conditions.

(b) For purposes of this section, “beer manufacturer” includes any holder of a beer manufacturer’s license, any holder of an out-of-state beer manufacturer’s certificate, or any holder of a beer and wine importer’s general license.

Notes

Prohibits a beer manufacturer from terminating a beer sale or distribution agreement solely because a wholesaler failed to meet a sales goal or quota that is not commercially reasonable under prevailing market conditions. The rule applies despite contrary agreement terms and covers licensed beer manufacturers, out-of-state certificate holders, and beer-and-wine importers holding general licenses.

Use as reference

Lexinter.net | California Code, Business and Professions Code - BPC § 25000.7 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-9/chapter-12/section-25000-7

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