State of Illinois
92nd General Assembly

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 1        AN ACT in relation to beverage distribution.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The Soft Drink Industry Fair Dealing Act is
 5    amended by changing Section 30 as follows:

 6        (815 ILCS 730/30)
 7        Sec. 30.  Reasonable compensation.
 8        (a)  A Any supplier that (i) cancels, fails to renew,  or
 9    otherwise  terminates  any  distribution  agreement,  or (ii)
10    unlawfully  denies  approval  of  or  unreasonably  withholds
11    consent  to  any  assignment,  transfer,   or   sale   of   a
12    distributor's  business,  assets,  stock,  or other ownership
13    interest in a distributor, shall (i) pay the distributor  the
14    fair  market  value  of  that  portion  of  the distributor's
15    business that the supplier has cancelled, failed to renew, or
16    otherwise terminated, or (ii) pay the  distributor  or  other
17    aggrieved person the fair market value of that portion of the
18    business,  assets,  stock, or other ownership interest sought
19    to be assigned, transferred, or sold. Fair market value shall
20    include, but shall not  be  limited  to,  the  value  of  the
21    goodwill  associated  with  the  business,  assets, stock, or
22    other ownership interest  valued  hereunder,  and  such  fair
23    market  value  shall  be  determined  without  regard  to any
24    marketability, minority interest, or other  similar  discount
25    or reduction.
26        (b)  If  a  supplier and a distributor or other aggrieved
27    person are unable to agree on the reasonable compensation  to
28    be  paid  under subsection (a), any such party may maintain a
29    civil suit as provided in Section  35  of  this  Act  or  the
30    matter  may, by mutual agreement of the parties, be submitted
31    to arbitration or mediation.  Unless  the  parties  otherwise
                            -2-                LRB9212054WHsb
 1    agree,  the  costs  of arbitration shall be shared equally by
 2    the parties.
 3        (c)  No  distributorship  agreement   may   require   the
 4    distributor to pay more than half the costs of arbitration or
 5    mediation or require arbitration or mediation to be conducted
 6    outside this State.
 7    (Source: P.A. 91-3, eff. 5-21-99.)

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