§ 3-13-2 - Purposes – Construction – Variation by contract prohibited. - Rhode Island Statutes

SECTION 3-13-2

   § 3-13-2  Purposes – Construction– Variation by contract prohibited. – (a) This chapter shall be liberally construed and applied to promote itsremedial purposes and policies.

   (b) The purposes and policies of this chapter are:

   (1) To regulate agreements between suppliers and theirwholesalers to benefit the economy and enhance competition in this state and topromote moderation and obedience to the laws of this state and the UnitedStates controlling the distribution and sale of malt beverages;

   (2) To protect wholesalers substantial initial and continuinginvestments of money, time and effort in their distributorships and tostimulate greater investment of those resources in these small businesses byassuring their continuation on a fair, equitable and nondiscriminatory basis;

   (3) To enhance competition in the malt beverage industry by:

   (i) Assuring the wholesaler is free to manage its businessenterprise in the manner the wholesaler deems best, including the wholesaler'sright independently to establish its selling prices, to determine the effortsand resources which the wholesaler will exert to promote and develop the saleof a supplier's products; and

   (ii) Assuring the public and suppliers that wholesalers willprice competitively, devote reasonable efforts and resources to sales of allsupplier's products marketed in this state and maintain satisfactory saleslevels.

   (4) To govern all relations between suppliers and theirwholesalers, including any renewals to agreements between them, to the fullextent consistent with the constitutions of this state and the United States.

   (c) The effect of this chapter may not be varied byagreement. Any agreement purporting to do so is void and unenforceable to thatextent only.