{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/4.1-405.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/4.1-405.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/4.1-405.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/4.1-405.html"}],"law_id":59612,"edition_id":1,"section_id":59612,"structure_id":13869,"section_number":"4.1-405","catch_line":"Sale of winery","history":"Code 1950, \u00a7 4-118.26; 1985, c. 542, \u00a7 4-118.46; 1989, c. 10; 1993, c. 866.","full_text":"A\n\nExcept for discontinuance of a brand or for good cause as provided in § 4.1-406, the purchaser of a winery shall become obligated to all of the terms and conditions of the selling winery’s agreements with wholesalers in effect on the date of purchase. The purchaser of a brand from a winery shall become obligated to all of the terms and conditions of the selling winery’s agreements with wholesalers concerning that brand. Whenever such a purchase of a brand results in the creation of a dual distributorship, the provisions of subdivisions 1 and 2 of subsection B will determine the distribution rights to such brand or any extension thereof. For the limited purpose of making such determination, the winery selling the brand shall be a nonsurviving winery and the purchaser shall be a surviving winery.B\n\nFor purposes of this section, when a purchase of a winery by or on behalf of another winery causes the selling winery to cease to exist as an independent legal entity, the selling winery shall be regarded as a nonsurviving winery, and the winery on whose behalf the purchase was made shall be regarded as a surviving winery. In any case in which such a purchase of a winery by or on behalf of another winery has created or will create a dual distributorship, the following rules shall apply in order to determine the allocation of any brands which are first marketed in the Commonwealth by the surviving winery after February 18, 1989:1\n\nIf the surviving winery distributes in the Commonwealth brands of the nonsurviving winery which that winery marketed anywhere prior to the purchase, these brands shall be distributed through any wholesalers who were distributors in the Commonwealth for the nonsurviving winery. If the nonsurviving winery had no distributors in the Commonwealth, then the surviving winery’s brands, as well as the brands of the surviving winery which were marketed anywhere prior to the purchase, shall be distributed through those wine wholesalers who were wholesalers of the surviving winery prior to the purchase.2\n\nIf the surviving winery decides to market in the Commonwealth a new brand which was not marketed anywhere prior to the purchase, but which is clearly an extension of a brand which did exist prior to the purchase, the new brand shall be distributed through those wholesalers who distributed the brand of which the new brand is an extension.3\n\nIf the surviving winery decides to introduce in the Commonwealth a new brand which was not marketed anywhere prior to the purchase and which is not a brand extension, the new brand may be distributed through any distributor.","order_by":null,"text":{"0":{"id":218348,"text":"Except for discontinuance of a brand or for good cause as provided in § 4.1-406, the purchaser of a winery shall become obligated to all of the terms and conditions of the selling winery’s agreements with wholesalers in effect on the date of purchase. The purchaser of a brand from a winery shall become obligated to all of the terms and conditions of the selling winery’s agreements with wholesalers concerning that brand. Whenever such a purchase of a brand results in the creation of a dual distributorship, the provisions of subdivisions 1 and 2 of subsection B will determine the distribution rights to such brand or any extension thereof. For the limited purpose of making such determination, the winery selling the brand shall be a nonsurviving winery and the purchaser shall be a surviving winery.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":218349,"text":"For purposes of this section, when a purchase of a winery by or on behalf of another winery causes the selling winery to cease to exist as an independent legal entity, the selling winery shall be regarded as a nonsurviving winery, and the winery on whose behalf the purchase was made shall be regarded as a surviving winery. In any case in which such a purchase of a winery by or on behalf of another winery has created or will create a dual distributorship, the following rules shall apply in order to determine the allocation of any brands which are first marketed in the Commonwealth by the surviving winery after February 18, 1989:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":218350,"text":"If the surviving winery distributes in the Commonwealth brands of the nonsurviving winery which that winery marketed anywhere prior to the purchase, these brands shall be distributed through any wholesalers who were distributors in the Commonwealth for the nonsurviving winery. If the nonsurviving winery had no distributors in the Commonwealth, then the surviving winery’s brands, as well as the brands of the surviving winery which were marketed anywhere prior to the purchase, shall be distributed through those wine wholesalers who were wholesalers of the surviving winery prior to the purchase.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":218351,"text":"If the surviving winery decides to market in the Commonwealth a new brand which was not marketed anywhere prior to the purchase, but which is clearly an extension of a brand which did exist prior to the purchase, the new brand shall be distributed through those wholesalers who distributed the brand of which the new brand is an extension.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":218352,"text":"If the surviving winery decides to introduce in the Commonwealth a new brand which was not marketed anywhere prior to the purchase and which is not a brand extension, the new brand may be distributed through any distributor.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2"}},"ancestry":[{"id":13869,"edition_id":1,"name":"Wine Franchise Act","identifier":"4","label":"chapter","depth":3,"order_by":1,"parent_id":13130,"metadata":{},"date_created":"2026-06-26 03:46:08","date_modified":"2026-06-26 03:46:08","permalink":{"id":219259,"object_type":"structure","relational_id":13869,"identifier":"4","token":"4.1\/I\/4","url":"\/4.1\/I\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13130,"edition_id":1,"name":"Alcoholic Beverage Control Act","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":13129,"metadata":{},"date_created":"2026-06-26 03:44:19","date_modified":"2026-06-26 03:44:19","permalink":{"id":218571,"object_type":"structure","relational_id":13130,"identifier":"I","token":"4.1\/I","url":"\/4.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13129,"edition_id":1,"name":"Alcoholic Beverage and Cannabis Control","identifier":"4.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:19","date_modified":"2026-06-26 03:44:19","permalink":{"id":218569,"object_type":"structure","relational_id":13129,"identifier":"4.1","token":"4.1","url":"\/4.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":83781,"structure_id":13869,"section_number":"4.1-400","catch_line":"Construction and purpose","url":"\/4.1-400\/","token":"4.1\/I\/4\/4.1-400","metadata":false},{"id":60540,"structure_id":13869,"section_number":"4.1-401","catch_line":"Definitions","url":"\/4.1-401\/","token":"4.1\/I\/4\/4.1-401","metadata":false},{"id":55509,"structure_id":13869,"section_number":"4.1-402","catch_line":"Applicability","url":"\/4.1-402\/","token":"4.1\/I\/4\/4.1-402","metadata":false},{"id":75909,"structure_id":13869,"section_number":"4.1-403","catch_line":"No inducement or coercion","url":"\/4.1-403\/","token":"4.1\/I\/4\/4.1-403","metadata":false},{"id":60486,"structure_id":13869,"section_number":"4.1-404","catch_line":"Sales territory","url":"\/4.1-404\/","token":"4.1\/I\/4\/4.1-404","metadata":false},{"id":59612,"structure_id":13869,"section_number":"4.1-405","catch_line":"Sale of winery","url":"\/4.1-405\/","token":"4.1\/I\/4\/4.1-405","metadata":false},{"id":72000,"structure_id":13869,"section_number":"4.1-406","catch_line":"Cancellation","url":"\/4.1-406\/","token":"4.1\/I\/4\/4.1-406","metadata":false},{"id":78096,"structure_id":13869,"section_number":"4.1-407","catch_line":"Notice of intent to terminate","url":"\/4.1-407\/","token":"4.1\/I\/4\/4.1-407","metadata":false},{"id":78276,"structure_id":13869,"section_number":"4.1-408","catch_line":"Transfer of business","url":"\/4.1-408\/","token":"4.1\/I\/4\/4.1-408","metadata":false},{"id":62136,"structure_id":13869,"section_number":"4.1-409","catch_line":"Remedies","url":"\/4.1-409\/","token":"4.1\/I\/4\/4.1-409","metadata":false},{"id":66145,"structure_id":13869,"section_number":"4.1-410","catch_line":"Board proceedings and appellate review","url":"\/4.1-410\/","token":"4.1\/I\/4\/4.1-410","metadata":false},{"id":85496,"structure_id":13869,"section_number":"4.1-411","catch_line":"Price of product","url":"\/4.1-411\/","token":"4.1\/I\/4\/4.1-411","metadata":false},{"id":63605,"structure_id":13869,"section_number":"4.1-412","catch_line":"Increase of prices","url":"\/4.1-412\/","token":"4.1\/I\/4\/4.1-412","metadata":false},{"id":86203,"structure_id":13869,"section_number":"4.1-413","catch_line":"Retaliatory action prohibited","url":"\/4.1-413\/","token":"4.1\/I\/4\/4.1-413","metadata":false},{"id":86032,"structure_id":13869,"section_number":"4.1-414","catch_line":"Management","url":"\/4.1-414\/","token":"4.1\/I\/4\/4.1-414","metadata":false},{"id":54897,"structure_id":13869,"section_number":"4.1-415","catch_line":"Discrimination prohibited","url":"\/4.1-415\/","token":"4.1\/I\/4\/4.1-415","metadata":false},{"id":80880,"structure_id":13869,"section_number":"4.1-416","catch_line":"Waiver prohibited; conflicts of laws","url":"\/4.1-416\/","token":"4.1\/I\/4\/4.1-416","metadata":false},{"id":78176,"structure_id":13869,"section_number":"4.1-417","catch_line":"Right of free association","url":"\/4.1-417\/","token":"4.1\/I\/4\/4.1-417","metadata":false},{"id":82038,"structure_id":13869,"section_number":"4.1-418","catch_line":"Reasonableness and good faith","url":"\/4.1-418\/","token":"4.1\/I\/4\/4.1-418","metadata":false}],"previous_section":{"id":60486,"structure_id":13869,"section_number":"4.1-404","catch_line":"Sales territory","url":"\/4.1-404\/","token":"4.1\/I\/4\/4.1-404","metadata":false},"next_section":{"id":72000,"structure_id":13869,"section_number":"4.1-406","catch_line":"Cancellation","url":"\/4.1-406\/","token":"4.1\/I\/4\/4.1-406","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/4.1-405\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1985, chapter 542; in 1989, chapter 10; in 1993, chapter 866.<\/p>","references":[{"id":60540,"section_number":"4.1-401","catch_line":"Definitions","order_by":null,"url":"\/4.1-401\/"},{"id":60486,"section_number":"4.1-404","catch_line":"Sales territory","order_by":null,"url":"\/4.1-404\/"}],"refers_to":[{"id":72000,"section_number":"4.1-406","catch_line":"Cancellation","order_by":null,"url":"\/4.1-406\/"}],"permalink":{"id":219281,"object_type":"law","relational_id":59612,"identifier":"4.1-405","token":"4.1\/I\/4\/4.1-405","url":"\/4.1-405\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/4.1-405\/","token":"4.1\/I\/4\/4.1-405","dublin_core":{"Title":"Sale of winery","Type":"Text","Format":"text\/html","Identifier":"\u00a7 4.1-405","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except for discontinuance of a brand<\/span> or for good cause as provided in § 4.1-406<\/a>, the purchaser of a winery shall become obligated to all of the terms and conditions of the selling winery’s agreements<\/span> with wholesalers in effect on the date of purchase. The purchaser of a brand<\/span> from a winery shall become obligated to all of the terms and conditions of the selling winery’s agreements<\/span> with wholesalers concerning that brand<\/span>. Whenever such a purchase of a brand<\/span> results in the creation of a dual distributorship, the provisions of subdivisions 1 and 2 of subsection B will determine the distribution rights to such brand<\/span> or any extension thereof. For the limited purpose of making such determination, the winery selling the brand<\/span> shall be a nonsurviving winery<\/span> and the purchaser shall be a surviving winery<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For purposes of this section, when a purchase of a winery by or on behalf of another winery causes the selling winery to cease to exist as an independent legal entity, the selling winery shall be regarded as a nonsurviving winery<\/span>, and the winery on whose behalf the purchase was made shall be regarded as a surviving winery<\/span>. In any case in which such a purchase of a winery by or on behalf of another winery has created or will create a dual distributorship, the following rules shall apply in order<\/span> to determine the allocation of any brands<\/span> which are first marketed in the Commonwealth by the surviving winery<\/span> after February 18, 1989: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the surviving winery<\/span> distributes in the Commonwealth brands<\/span> of the nonsurviving winery<\/span> which that winery marketed anywhere prior to the purchase, these brands<\/span> shall be distributed through any wholesalers who were distributors in the Commonwealth for the nonsurviving winery<\/span>. If the nonsurviving winery<\/span> had no distributors in the Commonwealth, then the surviving winery<\/span>’s brands<\/span>, as well as the brands<\/span> of the surviving winery<\/span> which were marketed anywhere prior to the purchase, shall be distributed through those wine wholesalers<\/span> who were wholesalers of the surviving winery<\/span> prior to the purchase. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the surviving winery<\/span> decides to market in the Commonwealth a new brand which was not marketed anywhere prior to the purchase, but which is clearly an extension of a brand<\/span> which did exist prior to the purchase, the new brand shall be distributed through those wholesalers who distributed the brand of which the new brand is an extension. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the surviving winery<\/span> decides to introduce in the Commonwealth a new brand which was not marketed anywhere prior to the purchase and which is not a brand extension<\/span>, the new brand may be distributed through any distributor. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSALE OF WINERY (\u00a7 4.1-405)\n\nA. Except for discontinuance of a brand or for good cause as provided in §\n4.1-406, the purchaser of a winery shall become obligated to all of the terms\nand conditions of the selling winery’s agreements with wholesalers in\neffect on the date of purchase. The purchaser of a brand from a winery shall\nbecome obligated to all of the terms and conditions of the selling\nwinery’s agreements with wholesalers concerning that brand. Whenever such\na purchase of a brand results in the creation of a dual distributorship, the\nprovisions of subdivisions 1 and 2 of subsection B will determine the\ndistribution rights to such brand or any extension thereof. For the limited\npurpose of making such determination, the winery selling the brand shall be a\nnonsurviving winery and the purchaser shall be a surviving winery.\n\nB. For purposes of this section, when a purchase of a winery by or on behalf of\nanother winery causes the selling winery to cease to exist as an independent\nlegal entity, the selling winery shall be regarded as a nonsurviving winery, and\nthe winery on whose behalf the purchase was made shall be regarded as a\nsurviving winery. In any case in which such a purchase of a winery by or on\nbehalf of another winery has created or will create a dual distributorship, the\nfollowing rules shall apply in order to determine the allocation of any brands\nwhich are first marketed in the Commonwealth by the surviving winery after\nFebruary 18, 1989:\n\n 1. If the surviving winery distributes in the Commonwealth brands of the\n nonsurviving winery which that winery marketed anywhere prior to the purchase,\n these brands shall be distributed through any wholesalers who were\n distributors in the Commonwealth for the nonsurviving winery. If the\n nonsurviving winery had no distributors in the Commonwealth, then the\n surviving winery’s brands, as well as the brands of the surviving winery\n which were marketed anywhere prior to the purchase, shall be distributed\n through those wine wholesalers who were wholesalers of the surviving winery\n prior to the purchase.\n\n 2. If the surviving winery decides to market in the Commonwealth a new brand\n which was not marketed anywhere prior to the purchase, but which is clearly an\n extension of a brand which did exist prior to the purchase, the new brand\n shall be distributed through those wholesalers who distributed the brand of\n which the new brand is an extension.\n\n 3. If the surviving winery decides to introduce in the Commonwealth a new\n brand which was not marketed anywhere prior to the purchase and which is not a\n brand extension, the new brand may be distributed through any distributor.\n\nHISTORY: Code 1950, \u00a7 4-118.26; 1985, c. 542, \u00a7 4-118.46; 1989, c. 10; 1993,\nc. 866.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}