PARRIS N. GLENDENING, Governor                            S.B. 455

Annotated Code of Maryland

(1990 Replacement Volume and 1994 Supplement)

BY adding to

Article - Commercial Law

Section 11-1307

Annotated Code of Maryland

(1990 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

11-1301.

(g) (1) "Distributor" means a person:

(i) Whose primary business is the wholesale distribution of
commercial goods for resale;

(ii) 1. Who maintains an inventory of commercial goods for resale;
OR

2. WHO DISTRIBUTES SPECIALTY CUSTOM MADE

PRODUCTS PRODUCED BY A MANUFACTURER ON A PER JOB BASIS AND MAINTAINS
AN INVENTORY OF ACCESSORY PRODUCTS THAT ARE UNIQUE TO THE SPECIALTY
CUSTOM PRODUCTS;

(iii) Who has been granted either expressly or implicitly the right to sell
or distribute a grantor's commercial goods in Maryland for resale to retailers or other
resellers or to an industrial or commercial manufacturer; and

(iv) Who conducts a substantial business in Maryland.

(2) "Distributor" does not include:

(i) A sales representative that does not maintain an inventory of
commercial goods; or

(ii) A direct seller whose work is exempt from covered employment
under § 8-206(b) of the Labor and Employment Article.

11-1303.

(a) Except as provided in subsections (d) and (e) of this section, [a grantor shall
notify] a GRANTOR MAY NOT CANCEL OR REFUSE TO RENEW AN AGREEMENT
UNLESS;

(1) THE DISTRIBUTOR HAS FAILED TO MEET THE MATERIAL TERMS
AND CONDITIONS OF THE AGREEMENT; AND

(2) THE GRANTOR NOTIFIES THE distributor not less than 60 days before:

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