{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/4.1-508.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/4.1-508.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/4.1-508.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/4.1-508.html"}],"law_id":54162,"edition_id":1,"section_id":54162,"structure_id":13131,"section_number":"4.1-508","catch_line":"Remedies","history":"1978, c. 579, \u00a7 4-118.10; 1985, c. 549; 1987, c. 247; 1993, c. 866.","full_text":"A\n\nIn addition to any other sanctions which the Board is empowered by law to impose, it may order that any act or practice constituting a violation of this chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery is found to have attempted or accomplished an amendment, termination, cancellation, or refusal to continue or renew an agreement without good cause as defined in \u00a7 4.1-505, the Board shall, upon the request of the wholesaler involved, enter an order requiring that (i) the agreement remain in effect or be reinstated or (ii) the brewery pay the wholesaler reasonable compensation for the value of the agreement, which shall be determined in the manner provided for in subsection B. Reasonable compensation shall include, but is not limited to, the following:1\n\nThe fair market value of the assets used by the wholesaler specifically for the purpose of distributing the brewery’s products;2\n\nThe cost of the wholesaler’s inventory of the brewery’s products calculated as the sum of the net price paid by the wholesaler for the inventory;3\n\nThe amount of any taxes paid by the wholesaler in connection with purchasing the inventory;4\n\nThe cost of transporting the inventory from the brewery to the wholesaler’s warehouse, plus any handling costs; and5\n\nThe goodwill of the wholesaler’s business representing a value over and above the fair market value of the foregoing tangible assets.\n\t\t\t\tThe compensation for such assets shall be subject to offset for (i) any sums recovered by the wholesaler in liquidation of the assets and (ii) the value which the assets have to the wholesaler independent of their value for use in distributing the brewery’s products.B\n\nIn the event the brewery and the beer wholesaler are unable to agree on the reasonable compensation to be paid for the value of the agreement, the matter shall be submitted to a panel of three arbitrators. The brewery and the beer wholesaler shall each select one arbitrator and the two arbitrators selected shall appoint a third arbitrator who shall be a person qualified by experience to appraise the value of existing businesses. The decision of the arbitrators shall be rendered within ninety days from the time the matter is submitted to arbitration unless the Board, for good cause shown, allows for an extension of time not to exceed thirty days, or unless the parties agree to an extension of time. All of the costs of the arbitration shall be paid one-half by the wholesaler and one-half by the brewery. By entering into an agreement, the parties are deemed to have agreed to arbitration as provided in this subsection and, further, that such arbitration shall be governed by the provisions of Chapter 21 (§ 8.01-577 et seq.) of Title 8.01.C\n\nIn addition to the foregoing remedies, in any case in which a brewery is found to have violated § 4.1-506, the Board may, upon request of the wholesaler involved, order the brewery to compensate the wholesaler for any losses proximately resulting from such violation, including but not limited to lost profits. Such losses shall be determined in the manner provided in subsection B and shall be calculated from the date of the violation by the brewery to the date the brewery initiates remedial action pursuant to Board order.","order_by":null,"text":{"0":{"id":198786,"text":"In addition to any other sanctions which the Board is empowered by law to impose, it may order that any act or practice constituting a violation of this chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery is found to have attempted or accomplished an amendment, termination, cancellation, or refusal to continue or renew an agreement without good cause as defined in \u00a7 4.1-505, the Board shall, upon the request of the wholesaler involved, enter an order requiring that (i) the agreement remain in effect or be reinstated or (ii) the brewery pay the wholesaler reasonable compensation for the value of the agreement, which shall be determined in the manner provided for in subsection B. Reasonable compensation shall include, but is not limited to, the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":198787,"text":"The fair market value of the assets used by the wholesaler specifically for the purpose of distributing the brewery’s products;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":198788,"text":"The cost of the wholesaler’s inventory of the brewery’s products calculated as the sum of the net price paid by the wholesaler for the inventory;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":198789,"text":"The amount of any taxes paid by the wholesaler in connection with purchasing the inventory;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":198790,"text":"The cost of transporting the inventory from the brewery to the wholesaler’s warehouse, plus any handling costs; and","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":198791,"text":"The goodwill of the wholesaler’s business representing a value over and above the fair market value of the foregoing tangible assets.\n\t\t\t\tThe compensation for such assets shall be subject to offset for (i) any sums recovered by the wholesaler in liquidation of the assets and (ii) the value which the assets have to the wholesaler independent of their value for use in distributing the brewery’s products.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"B"},"6":{"id":198792,"text":"In the event the brewery and the beer wholesaler are unable to agree on the reasonable compensation to be paid for the value of the agreement, the matter shall be submitted to a panel of three arbitrators. The brewery and the beer wholesaler shall each select one arbitrator and the two arbitrators selected shall appoint a third arbitrator who shall be a person qualified by experience to appraise the value of existing businesses. The decision of the arbitrators shall be rendered within ninety days from the time the matter is submitted to arbitration unless the Board, for good cause shown, allows for an extension of time not to exceed thirty days, or unless the parties agree to an extension of time. All of the costs of the arbitration shall be paid one-half by the wholesaler and one-half by the brewery. By entering into an agreement, the parties are deemed to have agreed to arbitration as provided in this subsection and, further, that such arbitration shall be governed by the provisions of Chapter 21 (§ 8.01-577 et seq.) of Title 8.01.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A5","next_prefix":"C"},"7":{"id":198793,"text":"In addition to the foregoing remedies, in any case in which a brewery is found to have violated § 4.1-506, the Board may, upon request of the wholesaler involved, order the brewery to compensate the wholesaler for any losses proximately resulting from such violation, including but not limited to lost profits. Such losses shall be determined in the manner provided in subsection B and shall be calculated from the date of the violation by the brewery to the date the brewery initiates remedial action pursuant to Board order.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/4.1-508\/","history_text":"

This law was first created in 1978. The record of its establishment is cataloged in chapter 579 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 1978 \u201cActs\u201d aren\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 549; in 1987, chapter 247; in 1993, chapter 866.<\/p>","references":false,"refers_to":[{"id":64225,"section_number":"4.1-505","catch_line":"Cancellation","order_by":null,"url":"\/4.1-505\/"},{"id":68432,"section_number":"4.1-506","catch_line":"Notice of intent to terminate","order_by":null,"url":"\/4.1-506\/"},{"id":80815,"section_number":"8.01-577","catch_line":"Submission of controversy; agreement to arbitrate; condition precedent to action","order_by":null,"url":"\/8.01-577\/"}],"permalink":{"id":219371,"object_type":"law","relational_id":54162,"identifier":"4.1-508","token":"4.1\/I\/5\/4.1-508","url":"\/4.1-508\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/4.1-508\/","token":"4.1\/I\/5\/4.1-508","dublin_core":{"Title":"Remedies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 4.1-508","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In addition to any other sanctions<\/span> which the Board<\/span> is empowered by law<\/span> to impose, it may order<\/span> that any act or practice constituting a violation of this chapter be ceased and, where necessary, corrective measures implemented. In addition, in any case in which a brewery<\/span> is found to have attempted or accomplished an amendment, termination, cancellation, or refusal to continue or renew an agreement<\/span> without good cause as defined in \u00a7 4.1-505<\/a>, the Board<\/span> shall, upon the request of the wholesaler involved, enter an order<\/span> requiring that (i) the agreement<\/span> remain in effect or be reinstated or (ii) the brewery<\/span> pay the wholesaler reasonable compensation for the value of the agreement<\/span>, which shall be determined in the manner provided for in subsection B. Reasonable compensation shall include, but is not limited to, the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The fair market value of the assets<\/span> used by the wholesaler specifically for the purpose of distributing the brewery<\/span>’s products; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The cost of the wholesaler’s inventory of the brewery<\/span>’s products calculated as the sum of the net price paid by the wholesaler for the inventory; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The amount of any taxes paid by the wholesaler in connection with purchasing the inventory; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The cost of transporting the inventory from the brewery<\/span> to the wholesaler’s warehouse, plus any handling costs; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The goodwill of the wholesaler’s business representing a value over and above the fair market value of the foregoing tangible assets<\/span>.\n\t\t\t\tThe compensation for such assets<\/span> shall be subject to offset for (i) any sums recovered by the wholesaler in liquidation<\/span> of the assets<\/span> and (ii) the value which the assets<\/span> have to the wholesaler independent of their value for use in distributing the brewery<\/span>’s products. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In the event the brewery<\/span> and the beer<\/span> wholesaler are unable to agree on the reasonable compensation to be paid for the value of the agreement<\/span>, the matter shall be submitted to a panel<\/span> of three arbitrators. The brewery<\/span> and the beer<\/span> wholesaler shall each select one arbitrator and the two arbitrators selected shall appoint a third arbitrator who shall be a person<\/span> qualified by experience to appraise the value of existing businesses. The decision of the arbitrators shall be rendered within ninety days from the time the matter is submitted to arbitration unless the Board<\/span>, for good cause shown, allows for an extension of time not to exceed thirty days, or unless the parties agree to an extension of time. All of the costs of the arbitration shall be paid one-half by the wholesaler and one-half by the brewery<\/span>. By entering into an agreement<\/span>, the parties are deemed to have agreed to arbitration as provided in this subsection and, further, that such arbitration shall be governed by the provisions of Chapter 21 (§ 8.01-577<\/a> et seq.) of Title 8.01. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In addition to the foregoing remedies, in any case in which a brewery<\/span> is found to have violated § 4.1-506<\/a>, the Board<\/span> may, upon request of the wholesaler involved, order<\/span> the brewery<\/span> to compensate the wholesaler for any losses proximately resulting from such violation, including but not limited to lost profits. Such losses shall be determined in the manner provided in subsection B and shall be calculated from the date of the violation by the brewery<\/span> to the date the brewery<\/span> initiates remedial action pursuant to Board<\/span> order<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREMEDIES (\u00a7 4.1-508)\n\nA. In addition to any other sanctions which the Board is empowered by law to\nimpose, it may order that any act or practice constituting a violation of this\nchapter be ceased and, where necessary, corrective measures implemented. In\naddition, in any case in which a brewery is found to have attempted or\naccomplished an amendment, termination, cancellation, or refusal to continue or\nrenew an agreement without good cause as defined in \u00a7 4.1-505, the Board shall,\nupon the request of the wholesaler involved, enter an order requiring that (i)\nthe agreement remain in effect or be reinstated or (ii) the brewery pay the\nwholesaler reasonable compensation for the value of the agreement, which shall\nbe determined in the manner provided for in subsection B. Reasonable\ncompensation shall include, but is not limited to, the following:\n\n 1. The fair market value of the assets used by the wholesaler specifically for\n the purpose of distributing the brewery’s products;\n\n 2. The cost of the wholesaler’s inventory of the brewery’s\n products calculated as the sum of the net price paid by the wholesaler for the\n inventory;\n\n 3. The amount of any taxes paid by the wholesaler in connection with\n purchasing the inventory;\n\n 4. The cost of transporting the inventory from the brewery to the\n wholesaler’s warehouse, plus any handling costs; and\n\n 5. The goodwill of the wholesaler’s business representing a value over\n and above the fair market value of the foregoing tangible assets.\n \t\t\t\tThe compensation for such assets shall be subject to offset for (i) any\n sums recovered by the wholesaler in liquidation of the assets and (ii) the\n value which the assets have to the wholesaler independent of their value for\n use in distributing the brewery’s products.\n\nB. In the event the brewery and the beer wholesaler are unable to agree on the\nreasonable compensation to be paid for the value of the agreement, the matter\nshall be submitted to a panel of three arbitrators. The brewery and the beer\nwholesaler shall each select one arbitrator and the two arbitrators selected\nshall appoint a third arbitrator who shall be a person qualified by experience\nto appraise the value of existing businesses. The decision of the arbitrators\nshall be rendered within ninety days from the time the matter is submitted to\narbitration unless the Board, for good cause shown, allows for an extension of\ntime not to exceed thirty days, or unless the parties agree to an extension of\ntime. All of the costs of the arbitration shall be paid one-half by the\nwholesaler and one-half by the brewery. By entering into an agreement, the\nparties are deemed to have agreed to arbitration as provided in this subsection\nand, further, that such arbitration shall be governed by the provisions of\nChapter 21 (§ 8.01-577 et seq.) of Title 8.01.\n\nC. In addition to the foregoing remedies, in any case in which a brewery is\nfound to have violated § 4.1-506, the Board may, upon request of the\nwholesaler involved, order the brewery to compensate the wholesaler for any\nlosses proximately resulting from such violation, including but not limited to\nlost profits. Such losses shall be determined in the manner provided in\nsubsection B and shall be calculated from the date of the violation by the\nbrewery to the date the brewery initiates remedial action pursuant to Board\norder.\n\nHISTORY: 1978, c. 579, \u00a7 4-118.10; 1985, c. 549; 1987, c. 247; 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}}