§ 3-13-6 - Transfer of business assets of stock. - Rhode Island Statutes

SECTION 3-13-6

   § 3-13-6  Transfer of business assets ofstock. – (a) No supplier shall, by the terms of an agreement or otherwise, unreasonablywithhold or delay approval of any assignment, sale, or transfer of the stock ofa wholesaler or all or any portion of a wholesaler's assets, wholesaler'svoting stock, the voting stock of any parent corporation, or the beneficialownership or control of any other entity owning or controlling a wholesaler,including the wholesaler's rights and obligations under the terms of anagreement whenever the person or persons to be substituted meet reasonable andexpress standards imposed not only upon the wholesaler but upon all otherwholesalers of a supplier generally.

   (b) Upon the death of one of the partners of a partnershipoperating the business of a wholesaler, no supplier shall deny the survivingpartner or partners of that partnership the right to become asuccessor-in-interest to the agreement between the supplier and thatpartnership; provided the survivor has been active in the management of thepartnership and is otherwise capable of carrying on the business of thepartnership.

   (c) A wholesaler shall not transfer or agree to transfer anyof its rights and obligations under the terms of any agreement without firstgiving prior notice to the supplier.