16-3-507. Winery and wine importer agreement of distributorship provisions. (1) An agreement of distributorship for a winery or wine importer's product must provide that a distributor shall:

(a) maintain the financial and competitive capability to efficiently and effectively distribute a winery or wine importer's products;

(b) maintain the quality and integrity of a winery or wine importer's products in a manner set forth by the winery or wine importer;

(c) exert the distributor's best efforts to sell the winery or wine importer's brands;

(d) merchandise the products in retail stores and agency liquor stores as agreed between the distributor and the winery or wine importer; and

(e) give a winery or wine importer not less than 60 days' written notice of the distributor's intent to terminate an agreement of distributorship.

(2) As provided in 16-3-506, a winery or wine importer may terminate an agreement of distributorship based on a deficiency or other good cause by giving 60 days' prior written notice to the distributor.

(3) A winery or wine importer may terminate an agreement of distributorship immediately and without notice if the reason for the termination is insolvency, assignment for the benefit of creditors, bankruptcy, or revocation or suspension for more than 14 days of a license to operate that is required by the state or the federal government.