§ 18B-1205. Notice of intent to terminate. - North Carolina Statutes

§18B‑1205.  Notice of intent to terminate.

(a)        Except as providedin subsection (c), a winery shall provide a wholesaler at least 90 days priorwritten notice of any intention to amend, terminate, cancel, or not renew anyagreement. The notice, a copy of which shall be mailed at the same time to theCommission, shall state all the reasons for the intended amendment,termination, cancellation, or nonrenewal.

(b)        When the reasonsrelate to conditions that can be rectified by  the wholesaler, he has 60 days inwhich to do so. If the wholesaler rectifies the conditions within the 60‑dayperiod, he shall give written notice thereof to the winery and to theCommission. If the wholesaler has rectified the conditions, the proposedamendment, termination, cancellation, or nonrenewal is void, except that whenthe winery contends that the wholesaler has not completely rectified theconditions, the winery may, within 15 days after the expiration of the 60‑dayperiod, request a hearing before the Commission to determine if the wholesalerhas rectified all the conditions.

(c)        When the reasonsrelate to conditions that cannot be rectified  by the wholesaler within the 60‑dayperiod, the wholesaler may request a hearing before the Commission to determineif the winery has good cause for the amendment, termination, cancellation, ornonrenewal of the agreement. The burden of proving good cause for theamendment, termination, cancellation, or nonrenewal is on the winery.

(d)        Upon receiving awritten request from the winery or wholesaler for a hearing, the Commissionshall, after notice and hearing, determine if the wholesaler has rectified theconditions or if good cause exists for the amendment, termination,cancellation, or nonrenewal of the agreement, as appropriate. In any case inwhich a petition is made to the Commission for such a determination, theagreement in question shall continue in effect, pending the Commission'sdecision and any judicial review thereof.

(e)        In all proceedingsbefore the Commission, the Commission shall ensure that no agreements coveredby this Article result in unlawful discrimination on the basis of race, color,creed, sex, religion, or national origin.

(f)         No notice isrequired and an agreement may be immediately terminated, amended, canceled, or allowedto expire if the reason for  the amendment, termination, cancellation, ornonrenewal is:

(1)        The bankruptcy orreceivership of the wholesaler;

(2)        An assignment forthe benefit of creditors or similar disposition of the assets of the business;or

(3)        Revocation of thewholesaler's permit or license. (1983, c. 85, s. 2.)