MARVIN MANDEL, Governor                           2937

policy to promote temperance in the consumption
thereof and the orderly distribution thereof,
prohibiting certain unfair and coercive acts engaged
in by beer manufacturers, making it illegal to
terminate a beer franchise without good cause,
setting forth procedures governing notice and
implementation of proposed termination, forbidding
dual franchising in sales territories by beer
manufacturers, forbidding sales outside of sales
territories by beer distributors, creating a cause
of action for aggreived franchisees, and relating
generally to franchisees and franchisors of beer.

BY adding to

Article 2B - Alcoholic Beverages

Section 203A, 203B, 203C, 203D, 203E and 203F, to be

under the new subtitle "Beer Franchise Fair

Dealing Act"

Annotated Code of Maryland
(1968 Replacement Volume and 1973 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Sections 203A, 203B, 203C, 203D, 203E
and 203F, to be under the new subtitle "Beer Franchise
Fair Dealing Act" be and they are hereby added to Article
2B — Alcoholic Beverages, of the Annotated Code of
Maryland (1968 Replacement Volume and 1973 Supplement) to
read as follows:

Article 2B — Alcoholic Beverages
BEER FRANCHISE FAIR DEALING ACT
203A.

(A) IT IS THE DECLARED POLICY OF THE STATE OF
MARYLAND THAT IT IS NECESSARY TO REGULATE AND CONTROL THE
AGREEMENTS, FRANCHISES AND RELATIONSHIPS BETWEEN
MANUFACTURERS OF BEER AND THEIR DISTRIBUTORS FOR THE
PURPOSE OF FOSTERING AND PROMOTING TEMPERANCE IN THE
CONSUMPTION THEREOF, AND TO PROMOTE RESPECT FOR AND
OBEDIENCE TO THE LAWS CONTROLLING THE DISTRIBUTION AND
SALE OF BEER. IT IS NECESSARY TO ACCOMPLISH THE DECLARED
POLICY IN ORDER TO ELIMINATE THE UNDUE STIMULATION OF
SALES OF BEER IN THIS STATE BY MANUFACTURERS INDUCING,
COERCING, OR ATTEMPTING TO INDUCE OR COERCE, DISTRIBUTORS
OF BEER TO DO ACTS DETRIMENTAL TO THE ORDERLY AND LAWFUL
DISTRIBUTION THEREOF BY THREATENED OR ACTUAL TERMINATION
OF THE MANUFACTURER AND DISTRIBUTOR RELATIONSHIP,
DIRECTLY OR INDIRECTLY, BY THE ESTABLISHMENT OF DUAL
DISTRIBUTORS OF A BRAND OR BRANDS THEREOF IN A TERRITORY