§ 752. Definitions
As used in this subchapter:
(1) “Barrel” means 31 gallons of malt beverages.
(2) “Certificate of approval holder” means a holder of a certificate of approval issued
by the Board of Liquor and Lottery pursuant to section 274 of this title that produces or distributes a total annual volume of not more than 50,000 barrels
of malt beverages and whose products comprise three percent or less of a wholesale
dealer’s total annual sales of malt beverages by volume.
(3) “Compensation” means the cost of a wholesale dealer’s laid-in inventory related to
a franchise that has been or is about to be terminated plus five times the average
annual gross profits earned by the wholesale dealer on the sale of products pursuant
to the franchise during the last three calendar years or, if the franchise has not
been in existence for three years, the period of time during which the franchise has
been in existence. “Gross profits” shall equal the revenue earned by the wholesale
dealer on the sale of products pursuant to the franchise minus the cost of those products,
including shipping and taxes.
(4) “Franchise” means a written agreement governing a relationship between a wholesale
dealer and a certificate of approval holder or manufacturer that has existed for at
least one year and has one or more of the following characteristics:
(A) the wholesale dealer is granted the right to offer and sell the brands of malt beverages
offered by the certificate of approval holder or manufacturer;
(B) the wholesale dealer, as an independent business, constitutes a component of a certificate
of approval holder’s or manufacturer’s distribution system;
(C) the wholesale dealer’s business is substantially associated with the certificate of
approval holder’s or manufacturer’s brand, advertising, or other commercial symbol
designating the manufacturer;
(D) the wholesale dealer’s business is substantially reliant on the certificate of approval
holder or manufacturer for the continued supply of malt beverages; or
(E) the certificate of approval holder or manufacturer has granted the wholesale dealer
a license to use a trade name, trademark, service mark, or related characteristic,
and there is a community of interest in the marketing of goods or services at wholesale,
retail, by lease, or otherwise.
(5) “Manufacturer” means a manufacturer licensed pursuant to section 271 of this title that produces a total annual volume of not more than 50,000 barrels of malt beverages
and whose products comprise three percent or less of a wholesale dealer’s total annual
sales of malt beverages by volume.
(6) “Total annual sales” means the total volume of all malt beverages sold by a wholesale
dealer in the last four completed calendar quarters. A wholesale dealer’s total annual
sales of malt beverages shall include the worldwide, aggregate amount of all brands
of malt beverages that were sold, directly or indirectly, during the last four completed
calendar quarters by the wholesale dealer and any entity that controlled, was controlled
by, or was under common control with the wholesale dealer.
(7) “Total annual volume” means:
(A) the amount of malt beverages manufactured worldwide during the last four completed
calendar quarters, directly or indirectly, by or on behalf of:
(i) the certificate of approval holder or manufacturer;
(ii) any employee, director, or officer of a certificate of approval holder or manufacturer;
or
(iii) an affiliate of the certificate of approval holder or manufacturer, regardless of
whether the affiliation is corporate, or is by management, direction, or control;
or
(B) the amount of malt beverages distributed worldwide during the last four completed
calendar quarters directly or indirectly, by or on behalf of:
(i) the certificate of approval holder;
(ii) any employee, director, or officer of a certificate of approval holder; or
(iii) an affiliate of the certificate of approval holder, regardless of whether the affiliation
is corporate, or is by management, direction, or control. (Added 2017, No. 145 (Adj. Sess.), § 5, eff. Jan. 1, 2019; amended 2017, No. 145 (Adj. Sess.), § 7, eff. July 1, 2022; 2019, No. 73, § 20.)