South Dakota Codified Laws
Chapter 08A - Regulation Of Beer Industry Business Relationships
Section 35-8A-3 - Distribution contracts--Application of this chapter.

35-8A-3. Distribution contracts--Application of this chapter.
Any supplier and any wholesaler may contract with one another to establish the terms and conditions of their distribution arrangement. If any supplier and any wholesaler have entered into a mutually binding written agreement, the provisions of this chapter do not apply and the relationship, rights, and obligations as between the parties shall be governed in all respects by the provisions of the mutually binding written agreement, if the provisions are reasonable, nondiscriminatory, and not unconscionable. However, no provision of a mutually binding written agreement that is determined to be unreasonable, discriminatory, and unconscionable is of any effect, and the provision is severable from any other provisions. Any specific provision in the agreement is invalid if the provision is more restrictive of the wholesaler's right than this chapter allows or if the provision lessens any obligation of the supplier as specified in this chapter; in that event the provisions of this chapter apply. A supplier may have a different agreement with different wholesalers in different brands.
In the event of a dispute as to whether the relationship, rights, and obligations as between a supplier and a wholesaler are governed by a mutually binding written agreement or by this chapter, any court of competent jurisdiction in this State may determine the issue by declaratory judgment upon proper application to the court by either party to the dispute.

Source: SL 1990, ch 300, §3; SL 2008, ch 37, §191.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 35 - Alcoholic Beverages

Chapter 08A - Regulation Of Beer Industry Business Relationships

Section 35-8A-1 - Legislative authority and purpose.

Section 35-8A-2 - Definitions of terms.

Section 35-8A-3 - Distribution contracts--Application of this chapter.

Section 35-8A-4 - Prohibited actions by supplier.

Section 35-8A-5 - Good cause for termination, cancellation, nonrenewal, discontinuance, or modification.

Section 35-8A-6 - Conditions for terminating, failing to renew, or refusing to continue under an agreement by supplier--Notice to wholesaler.

Section 35-8A-7 - When compensation required from brewer--Reasonable value--Arbitration.

Section 35-8A-8 - Brewery may assume wholesaler's business--Time limitation--Brewer as limited partner with wholesaler.

Section 35-8A-9 - Injunctive relief for violation of distribution agreement--Costs and attorney fees--Jurisdiction--Arbitration upon agreement by all parties.

Section 35-8A-10 - Transfer of wholesaler's business--Approval required--Exception for death--Unreasonable delay.

Section 35-8A-11 - Distribution agreement binding upon successor.

Section 35-8A-12 - Waiver of rights void--Mutually binding agreements or voluntary dispute settlements not prohibited.

Section 35-8A-13 - Unreasonable amendment prohibited.

Section 35-8A-14 - Exclusive sales territories--Designated wholesaler.

Section 35-8A-15 - Application of chapter.

Section 35-8A-16 - Brand defined.

Section 35-8A-17 - Brand extension defined.

Section 35-8A-18 - Brand extension to be assigned wholesaler granted exclusive sales territory for preexisting brand--Exemption.

Section 35-8A-19 - Future brand extensions to be assigned wholesaler who first had brand.

Section 35-8A-20 - Application of certain amended and enacted sections.