                                 CODE OF VIRGINIA

REMEDIES (§ 4.1-508)

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

   2. The cost of the wholesaler&#8217;s inventory of the brewery&#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 brewery 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.
   				The 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&#8217;s products.

B. 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 (&#xA7; 8.01-577 et seq.) of Title 8.01.

C. In addition to the foregoing remedies, in any case in which a brewery is
found to have violated &#xA7; 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.

HISTORY: 1978, c. 579, § 4-118.10; 1985, c. 549; 1987, c. 247; 1993, c. 866.