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2018 SESSION
18101253DBe it enacted by the General Assembly of Virginia:
1. That § 4.1-404 of the Code of Virginia is amended and reenacted as follows:
§ 4.1-404. Sales territory.
Each winery which enters into an agreement with a wine
wholesaler shall designate a sales territory as the primary area of
responsibility of that wholesaler which is applicable to the agreement. The term "primary area
of responsibility" shall not be construed as restricting sales or sales
efforts by a wine wholesaler exclusively to retailers located within the
designated sales territory, and any agreement to the contrary shall be void. No winery shall enter into any agreement with more than
one wholesaler for the purpose of establishing more than one agreement for its
brands of wine in any territory. However, the existence of more than one such
agreement as a result of a sale of a winery as contemplated by § 4.1-405 shall
not be prohibited. Notwithstanding any other provision in this chapter, a
winery may enter into agreements with more than one wholesaler in a sales
territory for new brands which are not clearly extensions of existing brands.
Territories served by a wine wholesaler on February 18, 1989, shall be deemed
designated sales territories within the meaning of this section. Each winery
shall notify the Board in writing of all designations of sales territories, the
identity of the wholesaler appointed to serve such territory and a statement of
any variations which exist in the designated territory in regard to a
particular brand. Redesignations shall be reported to the Board within thirty 30
days.