Alcohol Franchise Contract Arbitration Fairness Act of 2008

Alcohol Franchise Contract Arbitration Fairness Act of 2008 - Authorizes the resolution of alcohol beverage franchise disputes through arbitration if an alcoholic beverage franchise contract provides for it, but only if, after a dispute arises, all parties to the dispute consent to use of arbitration.

Defines "alcoholic beverage franchise contract" as one under which an alcoholic beverage manufacturer, importer, or distributor sells alcoholic beverages to any other person for resale to an ultimate purchaser.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 7076 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7076

 To resolve the alcohol beverage franchise dispute resolution process.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2008

 Mr. Space (for himself and Mr. Turner) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To resolve the alcohol beverage franchise dispute resolution process.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alcohol Franchise Contract 
Arbitration Fairness Act of 2008''.

SEC. 2. VOLUNTARY ARBITRATION OF ALCOHOLIC BEVERAGE FRANCHISE DISPUTES.

    (a) Election of Arbitration.--
            (1) Definitions.--For purposes of this subsection--
                    (A) the term ``alcoholic beverage'' has the meaning 
                given such term in section 203 of the Federal Alcohol 
                Administration Act (27 U.S.C. 214); and
                    (B) the term ``alcoholic beverage franchise 
                contract'' means a contract under which an alcoholic 
                beverage manufacturer, importer, or distributor sells 
                alcoholic beverages to any other person for resale to 
                an ultimate purchaser.
            (2) Consent required.--Notwithstanding any other provision 
        of law, whenever an alcoholic beverage franchise contract 
        provides for the use of arbitration to resolve a controversy 
        arising out of or relating to such contract, arbitration may be 
        used to settle such controversy only if after such controversy 
        arises all parties to such controversy consent in writing to 
        use arbitration to settle such controversy.
            (3) Explanation required.--Notwithstanding any other 
        provision of law, whenever arbitration is elected to settle a 
        dispute under an alcoholic beverage franchise contract, the 
        arbitrator shall be bound to follow the applicable law and 
        provide the parties to such contract with a written explanation 
        of the factual and legal basis for the award.
    (b) Application.--Subsection (a) shall apply to contracts entered 
into, amended, altered, modified, renewed, or extended after October 1, 
2008.
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