ensed by the Nevada Tax Commission to sell malt beverages, distilled spirits and wines, or all of them, as it is originally packaged to retail liquor stores or to another licensed wholesaler, but not to sell to the consumer or general public. (Added to NRS by 1973, 1353; A 1995, 1569) NRS 597.155 Termination of franchise by supplier: Notice; effective date. 1. Except as otherwise provided in subsection 2, a supplier must, at least 90 days before he terminates or refuses to continue any franchise with a wholesaler or causes a wholesaler to resign from any franchise, send a notice by certified mail, return receipt requested, to the wholesaler. The notice must include: (a) The reason for the proposed action and a description of any failure of the wholesaler to comply with the terms, provisions and conditions of the franchise alleged by the supplier pursuant to NRS 597.160; and (b) A statement that the wholesaler may correct any such failure within the period prescribed in NRS 597.160. 2. Any action taken by a supplier pursuant to subsection 1 becomes effective on the date the wholesaler receives the notice required pursuant to subsection 1 if the wholesaler: (a) Has had his license to sell alcoholic beverages issued pursuant to state or federal law revoked or suspended for more than 31 days; (b) Is insolvent pursuant to 11 U.S.C. § 101; (c) Has had an order for relief entered against him pursuant to 11 U.S.C. §§ 701 et seq.; (d) Has had his ability to conduct business substantially affected by a liquidation or dissolution; (e) Or any other person who has a financial interest in the wholesaler of not less than 10 percent and is active in the management of the wholesaler has been convicted of or has pleaded guilty to a felony and the supplier determines that the conviction or plea substantially and adversely affects the ability of the wholesaler to sell the products of the supplier; (f) Has committed fraud or has made a material misrepresentation in his dealings with the supplier or the products of the supplier; (g) Has sold alcoholic beverages which the wholesaler received from the supplier to: (1) A retailer who the wholesaler knows or should know does not have a place of business where the retailer is entitled to sell alcoholic beverages within the marketing area of the wholesaler; or (2) Any person who the wholesaler knows or should know sells or supplies alcoholic beverages to any retailer who does not have a place of business where the retailer is entitled to sell alcoholic beverages within the marketing area of the wholesaler; (h) Has failed to pay for any product ordered and delivered pursuant to the provisions of an agreement between the supplier and wholesaler within 7 business days after the supplier sends to the wholesaler a written notice which includes a statement that he has failed to pay for the product and a demand for immediate payment; (i) Has made an assignment for the benefit of creditors or a similar disposition of substantially all the assets of his franchise; (j) Or any other person who has a financial interest in the wholesaler has: (1) Transferred or attempted to transfer the assets of the franchise, voting stock of the wholesaler or voting stock of any parent corporation of the wholesaler; or (2) Changed or attempted to change the beneficial ownership or control of any such entity, unless the wholesaler first notified the supplier in writing and the supplier has not unreasonably withheld his approval; or (k) Discontinues selling the products of the supplier, unless: (1) The discontinuance is a result of an accident which the wholesaler was unable to prevent; (2) The wholesaler has, if applicable, taken action to correct the condition which caused the accident; and (3) The wholesaler has notified the supplier of the accident if he has discontinued selling the products of the supplier for more than 10 days. (Added to NRS by 1995, 1567) NRS 597.160 Prohibited acts by supplier; exceptions; correction by wholesaler of alleged failure to comply with franchise. 1. Except as otherwise provided in subsection 4, if more than one franchise for the same brand or brands of malt beverages, distilled spirits and wines, or all of them, is granted to different wholesalers in this state, it is a violation of NRS 597.120 to 597.180, inclusive, for any supplier to discriminate between such wholesalers with respect to any of the terms, provisions and conditions of these franchises. 2. Except as otherwise provided in this subsection and notwithstanding the terms, provisions or conditions of any franchise, a supplier shall not unilaterally terminate or refuse to continue any franchise with a wholesaler or cause a wholesaler to resign from that franchise unless the supplier has first established good cause for that termination, noncontinuance or causing of that resignation. This subsection does not apply to a supplier who sells less than 2,500 barrels of malt beverages, less than 250 cases of distilled spirits or less than 2,000 cases of wine in this state in any calendar year, or who operates a winery pursuant to NRS 597.240. 3. A wholesaler may, within 60 days after he receives a notice required pursuant to NRS 597.155, correct any failure to comply with the terms, provisions and conditions of the franchise alleged by the supplier. 4. Unless otherwise specified by contract between the supplier and wholesaler, a supplier shall not grant more than one franchise to a wholesaler for any brand of alcoholic beverage in a marketing area. (Added to NRS by 1973, 1354; A 1995, 1569) NRS 597.165 Requiring wholesaler to increase payment for product prohibited after delivery by supplier. A supplier shall not require a wholesaler to increase his payment to the supplier for any product of that supplier after the product is delivered to the wholesaler. (Added to NRS by 1995, 1567) NRS 597.170 Remedies of wholesaler. 1. Any wholesaler may bring an action in a court of competent jurisdiction against a supplier for violation of NRS 597.120 to 597.180, inclusive, and may recover the damages sustained by him, together with such costs of the action and reasonable attorney’s fees as are authorized under NRS 18.110. 2. The remedies provided in NRS 597.120 to 597.180, inclusive, are independent of and supplemental to any other remedy or remedies available to the wholesaler in law or equity. (Added to NRS by 1973, 1354)—(Substituted in revision for NRS 598.340) NRS 597.180 Action by wholesaler: Defense by supplier. In any action brought by a wholesaler against a supplier for termination or noncontinuance of, or causing to resign from a franchise in violation of NRS 597.120 to 597.180, inclusive, the supplier has the burden of establishing that he acted for good cause and that the wholesaler did not act in good faith. It is a complete defense for the supplier to prove that the termination, noncontinuance or causing to resign was done in good faith and for good cause. (Added to NRS by 1973, 1354; A 1995, 1569) Regulation of Business Practices NRS 597.190 Statement of legislative policy. It is the policy of the Legislature to insure the orderly distribution and marketing of alcoholic beverages in this state in order to protect locally owned and operated business enterprises and those residents whose livelihoods and investments are dependent on their freedom to manage their businesses without economic and coercive control by nonresident suppliers of alcoholic beverages. (Added to NRS by 1975, 623)—(Substituted in revision for NRS 598.351) NRS 597.200 Definitions. As used in NRS 597.190 to 597.250, inclusive, unless the context otherwise requires: 1. “Alcoholic beverage” means any malt beverage or spirituous, vin

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