4.1-404 - Primary area of responsibility. - Virginia Statutes

§ 4.1-404. Primary area of responsibility.

Each winery which enters into an agreement with a wine wholesaler shalldesignate a sales territory as the primary area of responsibility of thatwholesaler which is applicable to the agreement. The term "primary area ofresponsibility" shall not be construed as restricting sales or sales effortsby a wine wholesaler exclusively to retailers located within the designatedsales territory, and any agreement to the contrary shall be void. No wineryshall enter into any agreement with more than one wholesaler for the purposeof establishing more than one agreement for its brands of wine in anyterritory. However, the existence of more than one such agreement as a resultof a sale of a winery as contemplated by § 4.1-405 shall not be prohibited.Notwithstanding any other provision in this chapter, a winery may enter intoagreements with more than one wholesaler in a sales territory for new brandswhich are not clearly extensions of existing brands. Territories served by awine wholesaler on February 18, 1989, shall be deemed designated salesterritories within the meaning of this section. Each winery shall notify theBoard in writing of all designations of sales territories, the identity ofthe wholesaler appointed to serve such territory and a statement of anyvariations which exist in the designated territory in regard to a particularbrand. Redesignations shall be reported to the Board within thirty days.

(Code 1950, § 4-118.25; 1985, c. 542, § 4-118.45; 1989, c. 10; 1993, c. 866.)