TABC Code - Texas Alcoholic Beverage Commission

e named in writing by each party and the third of whom shall be chosen by the two arbiters so selected.
Should the arbiters selected fail to choose a third arbiter within 10 days, a judge of a district court in the
county in which the distributor's principal place of business is located shall select the third arbiter. Arbitration
shall be conducted in accordance with the Texas General Arbitration Act, as amended (Article
224, Revised Civil Statutes of Texas, 1925). Arbitration costs shall be paid one-half by the distributor and
one-half by the manufacturer. The award of the arbitrators shall be binding on the parties unless appealed
within 10 days from the date of the award. All proceedings on appeal shall be in accordance with and
governed by the Texas General Arbitration Act, as amended (Article 224, Revised Civil Statutes of Texas,
1925).
Sec. 102.78. RIGHT OF FREE ASSOCIATION. No manufacturer or distributor shall restrict
or inhibit, directly or indirectly, the right of free association among manufacturers or distributors for any
lawful purpose.
Sec. 102.79. JUDICIAL REMEDIES. (a) If a manufacturer or distributor who is a party to an
agreement pursuant to Section 102.51 of this code fails to comply with this Act or otherwise engages in
conduct prohibited under this Act, or if a manufacturer and distributor are not able to mutually agree on
reasonable compensation under Section 102.77 of this code and the matter is not to be submitted to
arbitration, the aggrieved manufacturer or distributor may maintain a civil action in a court of competent
jurisdiction in the county in which the distributor's principal place of business is located.
(b) In any action under Subsection (a) of this section, the court may grant such relief as the
court determines is necessary or appropriate considering the purposes of this Act.
(c) The prevailing party in any action under Subsection (a) of this section shall be entitled to
actual damages, including the value of the distributor's business, as specified in Section 102.77 of this
code, reasonable attorney's fees, and court costs.
Sec. 102.80. COVERAGE AND EFFECTIVE DATE. This Act shall cover agreements in
existence on the date of enactment of this Act and also shall apply to agreements entered into and any
cancellation, termination, failure to renew, amendment, or material modification of any agreement
occurring after the date of enactment of this Act.
Sec. 102.81. ALE AND MALT LIQUOR. This subchapter and Subchapter C of this chapter
apply to agreements concerning ale and malt liquor in the same manner as they apply to agreements
concerning beer, and each particular class of permittee dealing with ale and malt liquor is subject to those
provisions that apply to functionally corresponding licensees within the beer industry.
Sec. 102.82. STATUTE OF LIMITATIONS. A person must bring suit on an action arising
under this chapter not later than four years after the day the cause of action accrues. If a termination
related to a change in ownership of the brand occurs, the cause of action accrues when either the new
brand owner or the transferring or selling brand owner provides notice of termination to the distributor.
NOTE: The change in law made by this Act applies only to a cause of action that accrues on or after the
effective date of this Act. A cause of action that accrues before the effective date of this Act is governed
by the law in effect immediately before that date, and that law is continued in effect for that purpose.
CHAPTER 103. ILLICIT BEVERAGES
Sec. 103.01. ILLICIT BEVERAGES PROHIBITED. No person may possess, manufacture,
transport, or sell an illicit beverage.
Sec. 103.02. EQUIPMENT OR MATERIAL FOR MANUFACTURE OF ILLICIT
BEVERAGES. No person may possess equipment or material designed for, capable of use for, or used in
manufacturing an illicit beverage.
Sec. 103.03. SEIZURE OF ILLICIT BEVERAGES, ETC. A peace officer may seize without a
warrant:
(1) any illicit beverage, its container, and its packaging;
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