19.126.030 - Suppliers' protections. - Washington Statutes

Suppliers' protections.

Suppliers are entitled to the following protections which are deemed to be incorporated into every agreement of distributorship:

     (1) Agreements between suppliers and wholesale distributors shall be in writing;

     (2) A wholesale distributor shall maintain the financial and competitive capability necessary to achieve efficient and effective distribution of the supplier's products;

     (3) A wholesale distributor shall maintain the quality and integrity of the supplier's product in the manner set forth by the supplier;

     (4) A wholesale distributor shall exert its best efforts to sell the product of the supplier and shall merchandise such products in the stores of its retail customers as agreed between the wholesale distributor and supplier;

     (5) The supplier may cancel or otherwise terminate any agreement with a wholesale distributor immediately and without notice if the reason for such termination is fraudulent conduct in any of the wholesale distributor's dealings with the supplier or its products, insolvency, the occurrence of an assignment for the benefit of creditors, bankruptcy, or suspension in excess of fourteen days or revocation of a license issued by the state liquor board;

     (6) A wholesale distributor shall give the supplier prior written notice, of not less than ninety days, of any material change in its ownership or management and the supplier has the right to reasonable prior approval of any such change; and

     (7) A wholesale distributor shall give the supplier prior written notice, of not less than ninety days, of the wholesale distributor's intent to cancel or otherwise terminate the distributorship agreement.

[2009 c 155 § 2; 1984 c 169 § 3.]