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91_HB4419
LRB9112960LDpr
1 AN ACT to amend the Soft Drink Industry Fair Dealing Act
2 by changing Section 20.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Soft Drink Industry Fair Dealing Act is
6 amended by changing Section 20 as follows:
7 (815 ILCS 730/20)
8 Sec. 20. Notice of cancellation.
9 (a) Except as hereinafter provided in subsection (c), no
10 supplier may cancel, fail to renew, or otherwise terminate a
11 distribution agreement unless the supplier furnishes prior
12 notification to the affected party in accordance with
13 subsection (b).
14 (b) The notification required by subsection (a) of this
15 Section shall contain (i) a statement of the supplier's
16 intention to cancel, fail to renew, or otherwise terminate
17 the distribution agreement, (ii) a complete statement of the
18 reasons therefor, including all data and documentation
19 necessary to fully apprise the distributor of the reasons for
20 the action, and (iii) the date on which the action is
21 intended to take effect. The notification shall be in
22 writing and sent to the affected distributor by certified
23 mail not less than 90 days before the date on which the
24 supplier intends to cancel, fail to renew, or otherwise
25 terminate the distribution agreement, and shall provide the
26 distributor a reasonable period of time, in no event less
27 than 60 days from the date of delivery or posting of the
28 notice, within which to cure any claimed deficiency. If the
29 reason for cancellation, nonrenewal, or other termination is
30 nonpayment of sums due under the distributorship, the
31 notification shall be sent not less than 30 days before the
-2- LRB9112960LDpr
1 date on which the supplier intends to cancel, fail to renew,
2 or otherwise terminate the distribution agreement, and the
3 distributor shall have 30 days from the date of delivery or
4 posting of the notice within which to cure the default. If
5 the deficiency is cured within the applicable period, the
6 notice shall be void.
7 (c) The notice requirements of this Section shall not
8 apply if the reason for cancellation, failure to renew, or
9 other termination of a distributorship agreement is:
10 (1) an assignment for the benefit of the
11 distributor's creditors or similar disposition of
12 substantially all of the assets of the distributor's
13 business;
14 (2) the insolvency of the distributor or the
15 institution of proceedings in bankruptcy by or against
16 the distributor; or
17 (3) the dissolution or liquidation of the
18 distributor.
19 (Source: P.A. 91-3, eff. 5-21-99.)