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Texas Alcoholic Beverage Code - Section 102.73. Termination And Notice Of Cancellation

Legal Research Home > Texas Lawyer > Alcoholic Beverage Code > Texas Alcoholic Beverage Code - Section 102.73. Termination And Notice Of Cancellation

§ 102.73. TERMINATION AND NOTICE OF CANCELLATION.  (a) 
Except as provided in Subsection (c) of this section, and except as 
may be specifically agreed upon at the time by the parties, no 
manufacturer or beer distributor may cancel, fail to renew, or 
otherwise terminate an agreement unless the manufacturer or 
distributor furnishes prior notification in accordance with 
Subsection (b) of this section to the affected party.
	(b)  The notification required under Subsection (a) of this 
section shall be in writing and must be received by the affected 
party not less than 90 days before the date on which the agreement 
will be cancelled, not renewed, or otherwise terminated.  Such 
notification shall contain a statement of intention to cancel, 
failure to renew, or otherwise terminate an agreement, a statement 
of reasons therefor, and the date on which such action shall take 
effect.
	(c)  A manufacturer or distributor may cancel, fail to renew, 
or otherwise terminate an agreement without furnishing any prior 
notification for any of the following reasons:
		(1)  in the event of insolvency or bankruptcy or 
dissolution or liquidation of the other party;
		(2)  in the event the other party shall make an 
assignment for the benefit of creditors or similar disposition of 
substantially all of the assets of such party's business;
		(3)  in the event of a conviction or plea of guilty or 
no contest to a charge of violating a law or regulation or the 
revocation or suspension of a license or permit for a period of 30 
days or more relating to the business and which materially and 
adversely affects the party's ability to continue in business;  or
		(4)  in the event of the failure to pay amounts owing 
the other when due, upon demand therefor, in accordance with agreed 
payment terms.

Added by Acts 1981, 67th Leg., p. 60, ch. 26, § 1, eff. April 8, 
1981.   

Last modified: August 10, 2007