{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/4.1-406.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/4.1-406.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/4.1-406.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/4.1-406.html"}],"law_id":72000,"edition_id":1,"section_id":72000,"structure_id":13869,"section_number":"4.1-406","catch_line":"Cancellation","history":"Code 1950, \u00a7 4-118.27; 1985, c. 542, \u00a7 4-118.47; 1987, c. 246; 1989, c. 10; 1993, c. 866; 1996, c. 3.","full_text":"Notwithstanding the terms, provisions or conditions of any agreement, no winery shall unilaterally amend, cancel, terminate or refuse to continue to renew any agreement, or unilaterally cause a wholesaler to resign from an agreement, unless the winery has first complied with \u00a7 4.1-407 and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuance or causing a resignation. Good cause shall not include the sale or purchase of a winery. Good cause shall include, but is not limited to the following:\n\n1\n\nRevocation of the wholesaler’s license to do business in the Commonwealth;2\n\nBankruptcy or receivership of the wholesaler;3\n\nAssignment for the benefit of creditors or similar disposition of the assets of the wholesaler, other than the creation of a security interest in the assets of a wholesaler for the purpose of securing financing in the ordinary course of business; or4\n\nFailure by the wholesaler to substantially comply, without reasonable cause or justification, with any reasonable and material requirement imposed upon him in writing by the winery including, but not limited to, a substantial failure by a wine wholesaler to (i) maintain a sales volume or trend of his winery’s brand or brands comparable to that of other distributors of that brand in the Commonwealth similarly situated or (ii) render services comparable in quality, quantity or volume to the services rendered by other wholesalers of the same brand or brands within the Commonwealth similarly situated. In any determination as to whether a wholesaler has failed to substantially comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon him by the winery, consideration shall be given to the relative size, population, geographical location, number of retail outlets and demand for the products applicable to the territory of the wholesaler in question and to comparable territories.\n\t\t\tNothing in this section shall be construed to prohibit a winery from proposing or effecting an amendment to a contract with a wine wholesaler in the Commonwealth provided that such amendment is not inconsistent with this chapter.\n\t\t\tGood cause shall not be construed to exist without a finding of a material deficiency for which the wholesaler is responsible in any case in which good cause is alleged to exist based on circumstances not specifically set forth in subdivisions 1 through 4 of this section.","order_by":null,"text":{"0":{"id":259437,"text":"Notwithstanding the terms, provisions or conditions of any agreement, no winery shall unilaterally amend, cancel, terminate or refuse to continue to renew any agreement, or unilaterally cause a wholesaler to resign from an agreement, unless the winery has first complied with \u00a7 4.1-407 and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuance or causing a resignation. Good cause shall not include the sale or purchase of a winery. Good cause shall include, but is not limited to the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":259438,"text":"Revocation of the wholesaler’s license to do business in the Commonwealth;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":259439,"text":"Bankruptcy or receivership of the wholesaler;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":259440,"text":"Assignment for the benefit of creditors or similar disposition of the assets of the wholesaler, other than the creation of a security interest in the assets of a wholesaler for the purpose of securing financing in the ordinary course of business; or","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":259441,"text":"Failure by the wholesaler to substantially comply, without reasonable cause or justification, with any reasonable and material requirement imposed upon him in writing by the winery including, but not limited to, a substantial failure by a wine wholesaler to (i) maintain a sales volume or trend of his winery’s brand or brands comparable to that of other distributors of that brand in the Commonwealth similarly situated or (ii) render services comparable in quality, quantity or volume to the services rendered by other wholesalers of the same brand or brands within the Commonwealth similarly situated. In any determination as to whether a wholesaler has failed to substantially comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon him by the winery, consideration shall be given to the relative size, population, geographical location, number of retail outlets and demand for the products applicable to the territory of the wholesaler in question and to comparable territories.\n\t\t\tNothing in this section shall be construed to prohibit a winery from proposing or effecting an amendment to a contract with a wine wholesaler in the Commonwealth provided that such amendment is not inconsistent with this chapter.\n\t\t\tGood cause shall not be construed to exist without a finding of a material deficiency for which the wholesaler is responsible in any case in which good cause is alleged to exist based on circumstances not specifically set forth in subdivisions 1 through 4 of this section.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/4.1-406\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 5 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 1987, chapter 246; in 1989, chapter 10; in 1993, chapter 866; in 1996, chapter 3<\/a>.<\/p>","references":[{"id":59612,"section_number":"4.1-405","catch_line":"Sale of winery","order_by":null,"url":"\/4.1-405\/"},{"id":78096,"section_number":"4.1-407","catch_line":"Notice of intent to terminate","order_by":null,"url":"\/4.1-407\/"},{"id":62136,"section_number":"4.1-409","catch_line":"Remedies","order_by":null,"url":"\/4.1-409\/"}],"refers_to":[{"id":78096,"section_number":"4.1-407","catch_line":"Notice of intent to terminate","order_by":null,"url":"\/4.1-407\/"}],"permalink":{"id":219285,"object_type":"law","relational_id":72000,"identifier":"4.1-406","token":"4.1\/I\/4\/4.1-406","url":"\/4.1-406\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/4.1-406\/","token":"4.1\/I\/4\/4.1-406","dublin_core":{"Title":"Cancellation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 4.1-406","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Notwithstanding the terms, provisions or conditions of any agreement<\/span>, no winery<\/span> shall unilaterally amend<\/span>, cancel, terminate or refuse to continue to renew any agreement<\/span>, or unilaterally cause a wholesaler to resign from an agreement<\/span>, unless the winery<\/span> has first complied with \u00a7 4.1-407<\/a> and good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuance or causing a resignation. Good cause shall not include the sale<\/span> or purchase of a winery<\/span>. Good cause shall include, but is not limited to the following:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Revocation<\/span> of the wholesaler’s license to do business in the Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Bankruptcy<\/span> or receivership of the wholesaler; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Assignment for the benefit of creditors<\/span> or similar disposition<\/span> of the assets<\/span> of the wholesaler, other than the creation of a security interest in the assets<\/span> of a wholesaler for the purpose of securing financing in the ordinary course of business; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Failure by the wholesaler to substantially comply, without reasonable cause or justification, with any reasonable and material<\/span> requirement imposed upon him in writing by the winery<\/span> including, but not limited to, a substantial failure by a wine wholesaler<\/span> to (i) maintain a sales<\/span> volume or trend of his winery<\/span>’s brand<\/span> or brands<\/span> comparable to that of other distributors of that brand<\/span> in the Commonwealth similarly situated or (ii) render services comparable in quality, quantity or volume to the services rendered by other wholesalers of the same brand<\/span> or brands<\/span> within the Commonwealth similarly situated. In any determination as to whether a wholesaler has failed to substantially comply, without reasonable excuse or justification, with any reasonable and material<\/span> requirement imposed upon him by the winery<\/span>, consideration shall be given to the relative size, population, geographical location, number of retail outlets and demand for the products applicable to the territory<\/span> of the wholesaler in question and to comparable territories.\n\t\t\tNothing in this section shall be construed to prohibit a winery<\/span> from proposing or effecting an amendment to a contract<\/span> with a wine wholesaler<\/span> in the Commonwealth provided that such amendment is not inconsistent with this chapter.\n\t\t\tGood cause shall not be construed to exist without a finding<\/span> of a material<\/span> deficiency for which the wholesaler is responsible in any case in which good cause is alleged to exist based on circumstances not specifically set forth in subdivisions 1 through 4 of this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCANCELLATION (\u00a7 4.1-406)\n\nNotwithstanding the terms, provisions or conditions of any agreement, no winery\nshall unilaterally amend, cancel, terminate or refuse to continue to renew any\nagreement, or unilaterally cause a wholesaler to resign from an agreement,\nunless the winery has first complied with \u00a7 4.1-407 and good cause exists for\namendment, termination, cancellation, nonrenewal, noncontinuance or causing a\nresignation. Good cause shall not include the sale or purchase of a winery. Good\ncause shall include, but is not limited to the following:\n\n1. Revocation of the wholesaler’s license to do business in the\nCommonwealth;\n\n2. Bankruptcy or receivership of the wholesaler;\n\n3. Assignment for the benefit of creditors or similar disposition of the assets\nof the wholesaler, other than the creation of a security interest in the assets\nof a wholesaler for the purpose of securing financing in the ordinary course of\nbusiness; or\n\n4. Failure by the wholesaler to substantially comply, without reasonable cause\nor justification, with any reasonable and material requirement imposed upon him\nin writing by the winery including, but not limited to, a substantial failure by\na wine wholesaler to (i) maintain a sales volume or trend of his winery’s\nbrand or brands comparable to that of other distributors of that brand in the\nCommonwealth similarly situated or (ii) render services comparable in quality,\nquantity or volume to the services rendered by other wholesalers of the same\nbrand or brands within the Commonwealth similarly situated. In any determination\nas to whether a wholesaler has failed to substantially comply, without\nreasonable excuse or justification, with any reasonable and material requirement\nimposed upon him by the winery, consideration shall be given to the relative\nsize, population, geographical location, number of retail outlets and demand for\nthe products applicable to the territory of the wholesaler in question and to\ncomparable territories.\n\t\t\tNothing in this section shall be construed to prohibit a winery from\nproposing or effecting an amendment to a contract with a wine wholesaler in the\nCommonwealth provided that such amendment is not inconsistent with this chapter.\n\t\t\tGood cause shall not be construed to exist without a finding of a material\ndeficiency for which the wholesaler is responsible in any case in which good\ncause is alleged to exist based on circumstances not specifically set forth in\nsubdivisions 1 through 4 of this section.\n\nHISTORY: Code 1950, \u00a7 4-118.27; 1985, c. 542, \u00a7 4-118.47; 1987, c. 246; 1989,\nc. 10; 1993, c. 866; 1996, c. 3.","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}}