beverages and ready-to-drink cocktails from the distributor
license holder holds multiple licenses or operates at more than
one location, the malt or brewed beverages and ready-to-drink
cocktails may not be consumed or sold at licensed premises
located within the designated geographical area granted to an
importing distributor other than the importing distributor that
sold the malt or brewed beverages and ready-to-drink cocktails
to the distributor. If a licensee accepts the delivery of malt
or brewed beverages and ready-to-drink cocktails or transfers
malt or brewed beverages and ready-to-drink cocktails in
violation of this section, the licensee shall be subject to
suspension of his license for at least thirty days: Provided,
That the importing distributor holding such distributing rights
for such product shall not sell or deliver the same to another
importing distributor without first having entered into a
written agreement with the said secondary importing distributor
setting forth the terms and conditions under which such products
are to be resold within the territory granted to the primary
importing distributor by the manufacturer. Nothing herein
contained shall be construed to prevent any manufacturer from
authorizing the importing distributor holding the distributing
rights for a designated geographical area from selling the
products of such manufacturer to another importing distributor
also holding distributing rights from the same manufacturer for
another geographical area, providing such authority be contained
in writing and a copy thereof be given to each of the importing
distributors so affected.
(b.1) (1) Any person in this Commonwealth or elsewhere who
shall purchase or in any manner whatsoever acquire or otherwise
succeed to the business of a manufacturer, assets or rights to
import, market, ship into this Commonwealth or distribute a
brand of beer or ready-to-drink cocktail, or to use and exploit
any trademark incorporated as part of a brand of beer or ready-
to-drink cocktail produced by such a manufacturer shall be
obligated to all terms of the manufacturer's franchise
agreements in effect on the effective date of the purchase,
acquisition or succession, or, if earlier, at the time the
agreement contemplating the purchase, acquisition or succession
is actually made.
(2) "Purchase" or "acquisition," for purposes of this
section, includes, but is not limited to, a purchase,
acquisition, lease, license or assignment of all or a
controlling interest in the capital stock or operating assets,
including brand trademarks rights; merger; any corporate
reorganization or consolidation; and also, without limitation,
any license, cross-license, joint venture or other agreement or
arrangement, directly or indirectly, transferring, substituting
or materially changing the person or persons authorized by the
one owning or controlling a brand or any trademark as part of a
brand, to produce, import, ship, market or distribute the brand
of beer into or within this Commonwealth.
2021/90MSP/SB0566A03160 - 16 -
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