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§ 5-101. Definitions

West's Annotated Code of MarylandAlcoholic Beverages and CannabisEffective: January 1, 2020

West's Annotated Code of Maryland
Alcoholic Beverages and Cannabis (Refs & Annos)
Division I. General Provisions Affecting Multiple Jurisdictions [Titles 1-8] (Refs & Annos)
Title 5. General Beer Regulation (Refs & Annos)
Subtitle 1. Beer Franchise Fair Dealing Act (Refs & Annos)
Effective: January 1, 2020
MD Code, Alcoholic Beverages, § 5-101
Formerly cited as MD CODE, Art. 2B, § 17-101
§ 5-101. Definitions
In general
(a) In this subtitle the following words have the meanings indicated.
Beer distributor
(b) “Beer distributor” means a person that imports or causes to be imported into the State, or purchases or causes to be purchased in the State, beer for sale or resale to a retail dealer licensed under this article without regard to whether the business of the person is conducted under a beer franchise agreement or another form of agreement with a beer manufacturer.
Beer franchise agreement
(c) “Beer franchise agreement” means:
(1) a commercial relationship between a beer distributor and beer manufacturer that:
(i) is of a definite or indefinite duration; and
(ii) is not required to be in writing;
(2) a relationship in which a beer manufacturer grants a beer distributor the right to offer and sell the brands of beer offered by the beer manufacturer;
(3) a relationship in which a beer distributor, as an independent business, constitutes a component of a beer manufacturer's distribution system;
(4) a relationship in which a beer distributor's business is substantially associated with a beer manufacturer's brand, advertising, or another commercial symbol that designates the beer manufacturer;
(5) a relationship in which a beer distributor's business relies substantially on a beer manufacturer for the continued supply of beer; or
(6) a written or oral arrangement of definite or indefinite duration in which:
(i) a beer manufacturer grants to a beer distributor the right to use a trade name, trademark, service mark, or related characteristic; and
(ii) there is a community of interest in the marketing of goods or services at wholesale or retail, by lease, or by another method.
Beer manufacturer
(d) “Beer manufacturer” means:
(1) a brewer, fermenter, processor, bottler, or packager of beer located in or outside the State; or
(2) a person located in or outside the State that enters into a beer franchise agreement with a beer distributor doing business in the State.
Fair market value
(e) “Fair market value” means the price at which an asset would change hands between a willing seller and a willing buyer when:
(1) neither is acting under any compulsion; and
(2) both have knowledge of all of the relevant facts.
Franchisee
(f) “Franchisee” means:
(1) a beer distributor to whom a beer franchise agreement is granted or offered; or
(2) a beer distributor that is a party to a beer franchise agreement.
Franchisor
(g) “Franchisor” means a beer manufacturer that:
(1) enters into a beer franchise agreement with a beer distributor; or
(2) is a party to a beer franchise agreement.
Sales territory
(h) “Sales territory” means the area of sales responsibility designated by a beer franchise agreement for the brand or brands of beer of a beer manufacturer.

Credits

Added by Acts 2016, c. 41, § 2, eff. July 1, 2016. Amended by Acts 2019, c. 8, § 1, eff. March 27, 2019; Acts 2019, c. 379, § 1, eff. Jan. 1, 2020.
MD Code, Alcoholic Beverages, § 5-101, MD AL BEV § 5-101
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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