Title 12 · WY

12-9-108, either party, in appropriate circumstances, may bring

Citation: Wyo. Stat. § 12-9-108

Section: 12-9-108

12-9-108, either party, in appropriate circumstances, may bring an action in the appropriate court of this state pending a final determination of the proceedings on the merits.

(b) In any action brought under this act, the court shall have authority to grant temporary, preliminary and final injunctive relief.

(c) In addition to temporary, preliminary or final injunctive relief, any manufacturer or distributor who shall be aggrieved or injured in his business or property by reason of anything forbidden in this act may bring an action in the appropriate court of this state and may recover the damages sustained and the costs of the action, including a reasonable attorney's fee. (d) In addition to any other remedy or relief to which a person is entitled, a distributor or manufacturer aggrieved by a violation of this act may bring an action to obtain a declaratory judgment that an act, action or practice violates this act and to enjoin a manufacturer or distributor who has violated, is violating or is otherwise likely to violate this act.

(e) In an action for money damages, if a judge or jury finds that the defendant acted maliciously, the judge or jury may award punitive damages as permitted by Wyoming law.

(f) The remedies provided in this section shall be in addition to any other remedies provided by law or in equity.

12-9-117. Contracts and the validity thereof.

No manufacturer shall effect any sale to a distributor in Wyoming except pursuant to a written contract between the manufacturer and the distributor.

12-9-118. Repurchase of inventory upon termination.

(a) Except as otherwise provided in W.S. 12-9-120, whenever any malt beverage distributor enters into a franchise agreement with a manufacturer in which the distributor agrees to maintain an inventory of malt beverages and the franchise is subsequently terminated, the manufacturer shall repurchase the inventory as provided in this section. If the distributor has any outstanding debts to the manufacturer, then the repurchase amount may be credited to the distributor's account.

(b) The manufacturer shall repurchase that inventory previously purchased from him and held by the distributor on the date of termination of the contract. The manufacturer shall pay one hundred percent (100%) of the distributor's laid-in cost, payable when the product is returned to the manufacturer free and clear of all liens, claims and charges created or permitted by the distributor.

(c) Upon payment of the repurchase amount to the distributor, the title and right of possession to the repurchased inventory shall be transferred to the manufacturer.

(d) A distributor shall not keep any inventory except with the consent of the manufacturer and the distributor's agreement that such product will be maintained and sold in accordance with the manufacturer's product handling standards.

(e) If any manufacturer shall fail or refuse to repurchase any inventory covered under the provisions of this section within sixty (60) days after termination of a distributor's contract, he shall be civilly liable for one hundred percent (100%) of the current wholesale price of the inventory plus any freight charges paid by the distributor, the distributor's reasonable attorney's fees, court costs and interest on the current wholesale price computed at the legal interest rate.

12-9-119. Indemnification.

A manufacturer shall fully indemnify and hold harmless its distributor against any losses, including, but not limited to, court costs and reasonable attorney's fees or damages arising out of complaints, claims or lawsuits, including, but not limited to, strict liability, negligence, misrepresentation or express or implied warranty if the complaint, claim or lawsuit relates to a product liability claim pertaining to the manufacturing of a malt beverage product.

12-9-120. Terminating a franchise agreement without cause; compensation; arbitration; applicability.

(a) This section shall only apply to a franchise in which the franchisor annually produces twenty-five thousand (25,000) barrels of malt beverages in aggregate or less, including the production of malt beverages by any affiliate. For purposes of this section, malt beverages produced for a franchisor under a brand owned or controlled by the franchisor shall be attributed to the franchisor and not to the brewer producing the malt beverages for the franchisor.

(b) Notwithstanding any agreement or other provision of law, a franchise governed by this section may be terminated, not renewed, canceled or discontinued by the franchisor for any reason or no reason upon not less than forty-five (45) days written notice of the effective date of the termination, cancellation, nonrenewal or discontinuance of the franchise. Upon the effective date of any termination, cancellation, nonrenewal or discontinuance by a franchisor under this section, the franchisee shall be entitled to the following compensation: (i) The fair market value, as defined in W.S. 12-9- 115(c), of the terminated, cancelled, not renewed or discontinued franchise; and

(ii) The repurchase of all the franchisor's merchantable product at an amount equal to the laid-in cost of the franchisee's inventory of the franchisor's products that are in the franchisee's warehouse or in transit to the franchisee. Unmerchantable products shall be disposed of in accordance with the preexisting agreement of the parties or, if no agreement exists, shall be disposed of with the franchisor and franchisee sharing equally in the costs of disposal.

(c) If the franchisor and franchisee have not agreed to the reasonable compensation as provided under subsection (b) of this section upon the effective date of the termination, cancellation, nonrenewal or discontinuance of the franchise, then on or before the termination date the franchisor shall pay the franchisee a good faith estimate of compensation due under this section, including a good faith estimate of fair market value. The franchisee shall make merchantable inventory available for pickup by the franchisor or its designee.

(d) If the franchisee believes that the payment made by the franchisor under subsection (c) of this section was less than the compensation due under subsection (b) or (e) of this section or if no payment is made, the franchisee may, within forty-five (45) days of the effective date of the termination, cancellation, nonrenewal or discontinuance of the franchise, submit the question of compensation due to final and binding arbitration in accordance with the following:

(i) The manner of arbitration under this section shall be the manner agreed upon by the parties or, in the absence of an agreement, the arbitration shall proceed before a panel of three (3) arbitrators selected in accordance with the commercial rules of the American Arbitration Association;

(ii) If the arbitration concludes that the payment made by the franchisor to the franchisee upon termination was less than the compensation due under subsection (b) of this section, the franchisor shall pay the franchisee any additional amount of determined compensation, plus interest. If the arbitration concludes that the payment made by the franchisor to the franchisee upon termination was more than the compensation due by reason of the termination, the franchisee shall repay any determined overpayment to the franchisor, plus interest; (iii) All arbitration fees and expenses shall be equally divided among the parties to the arbitration unless the arbitration determines that the franchisor's payment under subsection (c) of this section was not a good faith estimate of the compensation due in which event the arbitration may award up to one hundred percent (100%) of the arbitration costs to the franchisee;

(iv) The arbitration shall be final and binding and shall fully resolve the issue of compensation due to the franchisee from the franchisor under this section.

(e) Notwithstanding any other provision of this section, by written mutual agreement, regardless of whether the agreement existed before or after the termination, cancelation, nonrenewal or discontinuance of a franchise under this section, the franchisor and the franchisee may establish a method or formula for compensating a franchisee under this section.

(f) This section shall be effective on July 1, 2024. This section shall apply to:

(i) All franchise agreements entered on or after July 1, 2024;

(ii) Any franchise in existence on July 1, 2024 upon the amendment or renewal of the franchise. For purposes of this paragraph, if a franchise has an indefinite duration or has a duration of one (1) year or more after July 1, 2024 the franchise shall be deemed to be renewed on July 1, 2025.

CHAPTER 10 - MISCELLANEOUS

12-10-101. Possessing, purchasing or selling an alcohol without liquid device prohibited; exception; definition; penalties.

(a) Except as provided in subsection (b) of this section, no person shall possess, purchase, sell or offer to sell an alcohol without liquid device.

(b) This section shall not apply to a hospital that operates primarily for the purpose of conducting scientific research, a state institution conducting bona fide research, a private college or university conducting bona fide research or to a pharmaceutical company or biotechnology company conducting bona fide research.

(c) Any person who violates subsection (a) of this section is guilty of a misdemeanor punishable by a fine of up to two hundred fifty dollars ($250.00) for the first offense and not more than seven hundred fifty dollars ($750.00), imprisonment for not more than six (6) months, or both, for second and subsequent offenses.

(d) Except as provided in subsection (b) of this section, any alcohol without liquid device found in Wyoming shall be confiscated and, after an opportunity for a hearing in a court of competent jurisdiction on the issue of whether the device is an alcohol without liquid device, shall be destroyed. The destruction of the device may be delayed if the device is needed for evidence in a criminal case.

(e) As used in this section "alcohol without liquid device" means a device, machine, apparatus or appliance that mixes alcoholic liquor with pure or diluted oxygen to produce an alcohol vapor that an individual can inhale. An alcohol without liquid device does not include an inhaler, nebulizer, atomizer or other device that is designed and intended by the manufacturer to dispense a prescribed or over-the-counter medication.

12-10-102. Homemade beverage tastings.

(a) In addition to any other privilege granted to a licensee under this title, a licensee may conduct an organized judging, tasting, exhibition, contest or competition of homemade beers, meads, wines or fermented fruit juices, or related events, at the premises or location where the licensee may legally serve alcoholic beverages. Nothing in this subsection shall be deemed to authorize any homemade beer, mead, wine or fermented fruit juice to be packaged or otherwise provided for consumption outside of the premises where the judging, tasting, exhibition, contest, competition or related event is occurring. The local licensing authority may restrict the portion of the premises that may be used for the judging, tasting, exhibition, contest, competition or related event. Homemade beers, meads, wines or fermented fruit juices provided at an event under this subsection shall not be provided for financial consideration.

(b) A licensee shall not acquire any ownership interest in homemade beers, meads, wines or fermented fruit juices stored for any period to be provided at an event under this section. The homemade beers, meads, wines and fermented fruit juices stored for the event shall be clearly identified and shall be kept separate from the alcoholic and malt beverage stock of the licensee. Nothing in this subsection shall prohibit a licensee from using homemade beers, meads, wines and fermented juices in conducting an organized event under subsection (a) of this section.

(c) As used in this section:

(i) "Financial consideration" means value that is given or received directly or indirectly through sales, fees, charges, dues, contributions or donations. "Financial consideration" shall not include:

(A) A tax deduction or credit for donating beer, mead, wine or fermented fruit juice to a nonprofit organization;

(B) An event admission charge, cover charge or club or organization dues, if the amount of the charge or dues is independent of the amount of beer, mead, wine or fermented fruit juice to be provided or consumed at the event or through club or organization activities;

(C) A prize awarded at a state or county fair or other organized judging, tasting, exhibition, contest or competition event at which consumption of a submitted beer, mead, wine or fermented fruit juice is offered without charge and only by the entrants, judges, exhibitors, contestants or competitors;

(D) The receipt of homemade beer, mead, wine or fermented fruit juice manufactured by another person;

(E) The receipt of beer, mead, wine or fermented fruit juice ingredients;

(F) Wages and salaries paid by an educational organization for teaching brewing, winemaking, fermentation science or fermentation processes.

(ii) "Homemade" means made for noncommercial purposes; (iii) "Noncommercial" means not sold, offered for sale or otherwise conditioned upon the provision or receipt of financial consideration.