                                 CODE OF VIRGINIA

TRANSFER OF BUSINESS (§ 4.1-408)

A. No winery shall unreasonably withhold or delay consent to any transfer of the
wholesaler&#8217;s business or transfer of the stock or other interest in the
wholesalership, whenever the wholesaler to be substituted meets the material and
reasonable qualifications and standards required of its wholesalers. Whenever a
transfer of a wholesaler&#8217;s business occurs, the purchaser shall assume all
the obligations imposed on and succeed to all the rights held by the selling
wholesaler by virtue of any agreement between the selling wholesaler and one or
more wineries entered into prior to the transfer.

B. Notwithstanding any provision in subsection A, no winery shall withhold
consent to, or in any manner retain a right of prior approval of, the transfer
of the wholesaler&#8217;s business to a member or members of the
wholesaler&#8217;s family. However, subsequent to such transfer, the rights and
obligations of the wholesalership and its owners shall in all respects be
governed by the provisions of this chapter. As used in this subsection,
&#8220;family&#8221; means the wholesaler&#8217;s spouse, parents, siblings,
children, stepchildren, and lineal descendants, including those by adoption.

HISTORY: Code 1950, § 4-118.29; 1985, c. 542, § 4-118.49; 1989, c. 10; 1993,
c. 866.