                                 CODE OF VIRGINIA

REMEDIES (§ 4.1-409)

A. 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 winery 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 § 4.1-406, 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 winery pay the
wholesaler reasonable compensation for the value of this agreement as determined
pursuant to subsection B. Reasonable compensation shall include, but is not
limited to, the following:

   1. The fair market value of the assets used by the wholesaler specifically for
   the purpose of distributing the winery&#8217;s products;

   2. The cost of the wholesaler&#8217;s inventory of the winery&#8217;s products
   calculated as the sum of the net price paid by the wholesaler for the
   inventory;

   3. The amount of any taxes paid by the wholesaler in connection with
   purchasing the inventory;

   4. The cost of transporting the inventory from the winery to the
   wholesaler&#8217;s warehouse, plus any handling costs; and

   5. The goodwill of the wholesaler&#8217;s business representing a value over
   and above the fair market value of the foregoing tangible assets.

B. In the event the winery and the 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 neutral arbitrator to be selected by the parties, or if
they cannot agree, a person qualified by experience to appraise the value of
existing businesses shall be appointed arbitrator by the Secretary of the Board.
The decision of the arbitrator 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 winery. 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 (&#xA7; 8.01-577 et seq.) of Title 8.01.

C. In addition to the foregoing remedies, in any case in which a winery is found
to have violated &#xA7; 4.1-407, the Board may, upon request of the wholesaler
involved, order the winery to compensate the wholesaler for any loss 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 winery to the date the winery
initiates remedial action pursuant to Board order.

HISTORY: Code 1950, § 4-118.30; 1985, c. 542, § 4-118.50; 1987, c. 246; 1989,
c. 10; 1993, c. 866.