35-8A-7. When compensation required from brewer--Reasonable value--Arbitration.
Any brewer who amends, cancels, terminates, or refuses to continue or renew any beer agreement, or causes a wholesaler to resign, unless for good cause shown as defined in §35-8A-5, from an agreement or unreasonably withholds consent to any assignment, transfer, or sale of a wholesaler's business, shall pay the wholesaler reasonable compensation for the value of the wholesaler's business. In determining the value of the wholesaler's business, consideration shall be given to all elements of value, including goodwill and going concern value.
If the brewer and the beer wholesaler are unable to mutually agree on the reasonable compensation to be paid for the value of the wholesaler's business, the matter may be submitted to arbitration as set forth in §35-8A-9.
Source: SL 1990, ch 300, §7.
Structure 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-7 - When compensation required from brewer--Reasonable value--Arbitration.
Section 35-8A-11 - Distribution agreement binding upon successor.
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-19 - Future brand extensions to be assigned wholesaler who first had brand.
Section 35-8A-20 - Application of certain amended and enacted sections.