{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/4.1-504.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/4.1-504.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/4.1-504.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/4.1-504.html"}],"law_id":76675,"edition_id":1,"section_id":76675,"structure_id":13131,"section_number":"4.1-504","catch_line":"Sale of brewery","history":"1985, c. 549, \u00a7 4-118.6:1; 1993, c. 866.","full_text":"A\n\nExcept for discontinuance of a brand or for good cause as provided in § 4.1-505, the purchaser of a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreements with distributors in effect on the date of purchase. The purchaser of a brand from a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreement with distributors 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 brewery selling such brand shall be a nonsurviving brewery and the purchaser shall be a surviving brewery.B\n\nFor purposes of this section, when a purchase of a brewery by or on behalf of another brewery causes the selling brewery to cease to exist as an independent legal entity, the selling brewery shall be regarded as a nonsurviving brewery and the brewery on whose behalf the purchase was made shall be regarded as a surviving brewery. The following rules shall apply in order to determine (i) the distribution rights to any brands which are first marketed in the Commonwealth by the surviving brewery on or after July 1, 1985, with respect to a dual distributorship created prior to July 1, 1985, and (ii) the distribution rights to any brands, regardless of when they were first marketed in the Commonwealth, with respect to a dual distributorship created on or after July 1, 1985:1\n\nIf the surviving brewery distributes in the Commonwealth any brand or brands of the nonsurviving brewery which that brewery marketed in the Commonwealth at any time during the one-year period ending on the day the purchase agreement was made, these brands shall be distributed through those beer wholesalers who were distributors in the Commonwealth for the nonsurviving brewery. Any brands which the surviving brewery had marketed in the Commonwealth prior to the purchase shall be distributed through those beer wholesalers who were wholesalers of the surviving brewery prior to the purchase.2\n\nIf the surviving brewery decides to market in the Commonwealth a new brand which is clearly an extension of a brand already assigned to beer wholesalers in the Commonwealth, the new brand shall be distributed through those wholesalers who distribute the brand of which the new brand is an extension.3\n\nIf the surviving brewery decides to introduce in the Commonwealth a new brand which was not marketed in the Commonwealth at any time during the one-year period ending on the date the purchase agreement was made and which is not a brand extension, the surviving brewery shall market the new brand either through a distributor of the nonsurviving brewery or through a distributor who was a distributor of the surviving brewery prior to the purchase, as the brewery may see fit in any territory.C\n\nSubsection B shall not apply to determine distributorship rights to any brands or brand extensions which were marketed in the Commonwealth prior to July 1, 1985, with respect to any dual distributorship created prior to July 1, 1985.","order_by":null,"text":{"0":{"id":275250,"text":"Except for discontinuance of a brand or for good cause as provided in § 4.1-505, the purchaser of a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreements with distributors in effect on the date of purchase. The purchaser of a brand from a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreement with distributors 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 brewery selling such brand shall be a nonsurviving brewery and the purchaser shall be a surviving brewery.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":275251,"text":"For purposes of this section, when a purchase of a brewery by or on behalf of another brewery causes the selling brewery to cease to exist as an independent legal entity, the selling brewery shall be regarded as a nonsurviving brewery and the brewery on whose behalf the purchase was made shall be regarded as a surviving brewery. The following rules shall apply in order to determine (i) the distribution rights to any brands which are first marketed in the Commonwealth by the surviving brewery on or after July 1, 1985, with respect to a dual distributorship created prior to July 1, 1985, and (ii) the distribution rights to any brands, regardless of when they were first marketed in the Commonwealth, with respect to a dual distributorship created on or after July 1, 1985:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":275252,"text":"If the surviving brewery distributes in the Commonwealth any brand or brands of the nonsurviving brewery which that brewery marketed in the Commonwealth at any time during the one-year period ending on the day the purchase agreement was made, these brands shall be distributed through those beer wholesalers who were distributors in the Commonwealth for the nonsurviving brewery. Any brands which the surviving brewery had marketed in the Commonwealth prior to the purchase shall be distributed through those beer wholesalers who were wholesalers of the surviving brewery 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":275253,"text":"If the surviving brewery decides to market in the Commonwealth a new brand which is clearly an extension of a brand already assigned to beer wholesalers in the Commonwealth, the new brand shall be distributed through those wholesalers who distribute 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":275254,"text":"If the surviving brewery decides to introduce in the Commonwealth a new brand which was not marketed in the Commonwealth at any time during the one-year period ending on the date the purchase agreement was made and which is not a brand extension, the surviving brewery shall market the new brand either through a distributor of the nonsurviving brewery or through a distributor who was a distributor of the surviving brewery prior to the purchase, as the brewery may see fit in any territory.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":275255,"text":"Subsection B shall not apply to determine distributorship rights to any brands or brand extensions which were marketed in the Commonwealth prior to July 1, 1985, with respect to any dual distributorship created prior to July 1, 1985.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3"}},"ancestry":[{"id":13131,"edition_id":1,"name":"Beer Franchise Act","identifier":"5","label":"chapter","depth":3,"order_by":1,"parent_id":13130,"metadata":{},"date_created":"2026-06-26 03:44:19","date_modified":"2026-06-26 03:44:19","permalink":{"id":219337,"object_type":"structure","relational_id":13131,"identifier":"5","token":"4.1\/I\/5","url":"\/4.1\/I\/5\/","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":54985,"structure_id":13131,"section_number":"4.1-500","catch_line":"Definitions","url":"\/4.1-500\/","token":"4.1\/I\/5\/4.1-500","metadata":false},{"id":83515,"structure_id":13131,"section_number":"4.1-501","catch_line":"Applicability","url":"\/4.1-501\/","token":"4.1\/I\/5\/4.1-501","metadata":false},{"id":58797,"structure_id":13131,"section_number":"4.1-502","catch_line":"No inducement or coercion","url":"\/4.1-502\/","token":"4.1\/I\/5\/4.1-502","metadata":false},{"id":73349,"structure_id":13131,"section_number":"4.1-503","catch_line":"Sales territory","url":"\/4.1-503\/","token":"4.1\/I\/5\/4.1-503","metadata":false},{"id":76675,"structure_id":13131,"section_number":"4.1-504","catch_line":"Sale of brewery","url":"\/4.1-504\/","token":"4.1\/I\/5\/4.1-504","metadata":false},{"id":64225,"structure_id":13131,"section_number":"4.1-505","catch_line":"Cancellation","url":"\/4.1-505\/","token":"4.1\/I\/5\/4.1-505","metadata":false},{"id":68432,"structure_id":13131,"section_number":"4.1-506","catch_line":"Notice of intent to terminate","url":"\/4.1-506\/","token":"4.1\/I\/5\/4.1-506","metadata":false},{"id":82189,"structure_id":13131,"section_number":"4.1-507","catch_line":"Transfer of business","url":"\/4.1-507\/","token":"4.1\/I\/5\/4.1-507","metadata":false},{"id":54162,"structure_id":13131,"section_number":"4.1-508","catch_line":"Remedies","url":"\/4.1-508\/","token":"4.1\/I\/5\/4.1-508","metadata":false},{"id":63316,"structure_id":13131,"section_number":"4.1-509","catch_line":"Board proceedings and appellate review","url":"\/4.1-509\/","token":"4.1\/I\/5\/4.1-509","metadata":false},{"id":84856,"structure_id":13131,"section_number":"4.1-509.1","catch_line":"Board proceedings; contemplated actions by brewery or wholesaler","url":"\/4.1-509.1\/","token":"4.1\/I\/5\/4.1-509.1","metadata":false},{"id":79517,"structure_id":13131,"section_number":"4.1-510","catch_line":"Price of product","url":"\/4.1-510\/","token":"4.1\/I\/5\/4.1-510","metadata":false},{"id":84245,"structure_id":13131,"section_number":"4.1-511","catch_line":"Increase of prices","url":"\/4.1-511\/","token":"4.1\/I\/5\/4.1-511","metadata":false},{"id":55929,"structure_id":13131,"section_number":"4.1-512","catch_line":"Retaliatory action prohibited","url":"\/4.1-512\/","token":"4.1\/I\/5\/4.1-512","metadata":false},{"id":69761,"structure_id":13131,"section_number":"4.1-513","catch_line":"Management","url":"\/4.1-513\/","token":"4.1\/I\/5\/4.1-513","metadata":false},{"id":82770,"structure_id":13131,"section_number":"4.1-514","catch_line":"Discrimination prohibited","url":"\/4.1-514\/","token":"4.1\/I\/5\/4.1-514","metadata":false},{"id":81269,"structure_id":13131,"section_number":"4.1-515","catch_line":"Waiver prohibited; conflicts of laws","url":"\/4.1-515\/","token":"4.1\/I\/5\/4.1-515","metadata":false},{"id":72076,"structure_id":13131,"section_number":"4.1-516","catch_line":"Right of free association","url":"\/4.1-516\/","token":"4.1\/I\/5\/4.1-516","metadata":false},{"id":77573,"structure_id":13131,"section_number":"4.1-517","catch_line":"Reasonableness and good faith","url":"\/4.1-517\/","token":"4.1\/I\/5\/4.1-517","metadata":false}],"previous_section":{"id":73349,"structure_id":13131,"section_number":"4.1-503","catch_line":"Sales territory","url":"\/4.1-503\/","token":"4.1\/I\/5\/4.1-503","metadata":false},"next_section":{"id":64225,"structure_id":13131,"section_number":"4.1-505","catch_line":"Cancellation","url":"\/4.1-505\/","token":"4.1\/I\/5\/4.1-505","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/4.1-504\/","history_text":"

This law was first created in 1985. The record of its establishment is cataloged in chapter 549 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1985 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. 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. That modification is as follows: in 1993, chapter 866.<\/p>","references":[{"id":54985,"section_number":"4.1-500","catch_line":"Definitions","order_by":null,"url":"\/4.1-500\/"},{"id":73349,"section_number":"4.1-503","catch_line":"Sales territory","order_by":null,"url":"\/4.1-503\/"}],"refers_to":[{"id":64225,"section_number":"4.1-505","catch_line":"Cancellation","order_by":null,"url":"\/4.1-505\/"}],"permalink":{"id":219355,"object_type":"law","relational_id":76675,"identifier":"4.1-504","token":"4.1\/I\/5\/4.1-504","url":"\/4.1-504\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/4.1-504\/","token":"4.1\/I\/5\/4.1-504","dublin_core":{"Title":"Sale of brewery","Type":"Text","Format":"text\/html","Identifier":"\u00a7 4.1-504","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 § 4.1-505<\/a>, the purchaser of a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreements<\/span> with distributors<\/span> in effect on the date of purchase. The purchaser of a brand<\/span> from a brewery shall become obligated to all of the terms and conditions of the selling brewery’s agreement<\/span> with distributors<\/span> 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 brewery selling such brand<\/span> shall be a nonsurviving brewery<\/span> and the purchaser shall be a surviving brewery<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For purposes of this section, when a purchase of a brewery by or on behalf of another brewery causes the selling brewery to cease to exist as an independent legal entity, the selling brewery shall be regarded as a nonsurviving brewery<\/span> and the brewery on whose behalf the purchase was made shall be regarded as a surviving brewery<\/span>. The following rules shall apply in order<\/span> to determine (i) the distribution rights to any brands<\/span> which are first marketed in the Commonwealth by the surviving brewery<\/span> on or after July 1, 1985, with respect to a dual distributorship created prior to July 1, 1985, and (ii) the distribution rights to any brands<\/span>, regardless of when they were first marketed in the Commonwealth, with respect to a dual distributorship created on or after July 1, 1985: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the surviving brewery<\/span> distributes in the Commonwealth any brand<\/span> or brands<\/span> of the nonsurviving brewery<\/span> which that brewery marketed in the Commonwealth at any time during the one-year period ending on the day the purchase agreement<\/span> was made, these brands<\/span> shall be distributed through those beer<\/span> wholesalers who were distributors<\/span> in the Commonwealth for the nonsurviving brewery<\/span>. Any brands<\/span> which the surviving brewery<\/span> had marketed in the Commonwealth prior to the purchase shall be distributed through those beer<\/span> wholesalers who were wholesalers of the surviving brewery<\/span> prior to the purchase. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the surviving brewery<\/span> decides to market in the Commonwealth a new brand which is clearly an extension of a brand<\/span> already assigned to beer<\/span> wholesalers in the Commonwealth, the new brand shall be distributed through those wholesalers who distribute 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 brewery<\/span> decides to introduce in the Commonwealth a new brand which was not marketed in the Commonwealth at any time during the one-year period ending on the date the purchase agreement<\/span> was made and which is not a brand extension<\/span>, the surviving brewery<\/span> shall market the new brand either through a distributor<\/span> of the nonsurviving brewery<\/span> or through a distributor<\/span> who was a distributor<\/span> of the surviving brewery<\/span> prior to the purchase, as the brewery may see fit in any territory<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Subsection B shall not apply to determine distributorship rights to any brands<\/span> or brand extensions<\/span> which were marketed in the Commonwealth prior to July 1, 1985, with respect to any dual distributorship created prior to July 1, 1985. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSALE OF BREWERY (\u00a7 4.1-504)\n\nA. Except for discontinuance of a brand or for good cause as provided in §\n4.1-505, the purchaser of a brewery shall become obligated to all of the terms\nand conditions of the selling brewery’s agreements with distributors in\neffect on the date of purchase. The purchaser of a brand from a brewery shall\nbecome obligated to all of the terms and conditions of the selling\nbrewery’s agreement with distributors 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 brewery selling such brand shall be a\nnonsurviving brewery and the purchaser shall be a surviving brewery.\n\nB. For purposes of this section, when a purchase of a brewery by or on behalf of\nanother brewery causes the selling brewery to cease to exist as an independent\nlegal entity, the selling brewery shall be regarded as a nonsurviving brewery\nand the brewery on whose behalf the purchase was made shall be regarded as a\nsurviving brewery. The following rules shall apply in order to determine (i) the\ndistribution rights to any brands which are first marketed in the Commonwealth\nby the surviving brewery on or after July 1, 1985, with respect to a dual\ndistributorship created prior to July 1, 1985, and (ii) the distribution rights\nto any brands, regardless of when they were first marketed in the Commonwealth,\nwith respect to a dual distributorship created on or after July 1, 1985:\n\n 1. If the surviving brewery distributes in the Commonwealth any brand or\n brands of the nonsurviving brewery which that brewery marketed in the\n Commonwealth at any time during the one-year period ending on the day the\n purchase agreement was made, these brands shall be distributed through those\n beer wholesalers who were distributors in the Commonwealth for the\n nonsurviving brewery. Any brands which the surviving brewery had marketed in\n the Commonwealth prior to the purchase shall be distributed through those beer\n wholesalers who were wholesalers of the surviving brewery prior to the\n purchase.\n\n 2. If the surviving brewery decides to market in the Commonwealth a new brand\n which is clearly an extension of a brand already assigned to beer wholesalers\n in the Commonwealth, the new brand shall be distributed through those\n wholesalers who distribute the brand of which the new brand is an extension.\n\n 3. If the surviving brewery decides to introduce in the Commonwealth a new\n brand which was not marketed in the Commonwealth at any time during the\n one-year period ending on the date the purchase agreement was made and which\n is not a brand extension, the surviving brewery shall market the new brand\n either through a distributor of the nonsurviving brewery or through a\n distributor who was a distributor of the surviving brewery prior to the\n purchase, as the brewery may see fit in any territory.\n\nC. Subsection B shall not apply to determine distributorship rights to any\nbrands or brand extensions which were marketed in the Commonwealth prior to July\n1, 1985, with respect to any dual distributorship created prior to July 1, 1985.\n\nHISTORY: 1985, c. 549, \u00a7 4-118.6:1; 1993, c. 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}}