{"data":{"id":"us-ky/krs-244.609","jurisdiction":"us-ky","citation":"KRS 244.609","heading":"Resolution of disputes between microbrewer and distributor --","body":"Arbitration.\nIn the event the microbrewer and distributor cannot agree on the fair market value as set\nforth in KRS 244.608(4)(g), then the parties shall arbitrate in accordance wi th the\nfollowing:\n(1) If the parties fail to reach an agreement not later than thirty (30) days after the\ndistributor receives the microbrewer's written notice to terminate, the distributor or\nmicrobrewer may send a written notice to the other party and th e American\nArbitration Association, or its successor in interest, declaring the party's intention to\nproceed with final and binding arbitration administered by the American Arbitration\nAssociation under the American Arbitration Association's Commercial Arb itration\nRules. Thereafter, an arbitration shall be held for the purpose of determining the fair\nmarket value of the distributor's total investment in the microbrewer's products\nbeing terminated. For the purpose of this subsection, fair market value shall be the\nvalue that would be determined in an arm's length transaction entered into without\nduress or threat of termination of the existing distributor's right and shall include all\nelements of value, including goodwill and going-concern value.\n(2) Notice of  intent to arbitrate shall be sent, as provided in subsection (1) of this\nsection, not later than thirty -five (35) days after the distributor receives written\nnotice to terminate. The arbitration proceeding shall conclude not later than forty -\nfive (45) days after the date the notice of intent to arbitrate is mailed to a party.\n(3) Any arbitration held pursuant to this section shall be conducted in the city within\nKentucky that:\n1. Is closest to the distributor; and\n2. Has a population of more than twenty thousand (20,000).\n(4) Any arbitration held pursuant to this section shall be conducted before one (1)\nimpartial arbitrator to be selected by the American Arbitration Association. The\narbitration shall be conducted in accordance with the rules and procedures  of the\nAmerican Arbitration Association.\n(5) An arbitrator's award in any arbitration held pursuant to this section shall be\nmonetary only and shall not enjoin or compel conduct. Any arbitration held\npursuant to this section shall be instead of all other remedies and procedures.\n(6) The cost of the arbitrator and any other direct costs of any arbitration held pursuant\nto this section shall be equally divided by the parties engaged in the arbitration. All\nother costs shall be paid by the party incurring them.\n(7) The arbitrator in any arbitration held pursuant to this section shall render a decision\nnot later than thirty (30) days after the conclusion of the arbitration, unless this time\nperiod is extended by mutual agreement of the parties or by the arbitra tor. The\ndecision of the arbitration is final and binding on the parties. Under no\ncircumstances may the parties appeal the decision of the arbitrator.\n(8) A party who fails to participate in the arbitration hearings in any arbitration held\npursuant to this section waives all rights the party would have had in the arbitration\nand is considered to have consented to the determination of the arbitrator.\n(9) Nothing in this section shall be construed to limit or prohibit good -faith settlements\nvoluntarily entered into by the parties.","path":["KRS Chapter 244"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50973","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:55Z","sha256":"0770066b6de55ca2f561ccf65322175b6224379c9f3b218a42e321832698a415","source_id":"us-ky","stale":false,"prev":"us-ky/krs-244.608","next":"us-ky/krs-244.650"},"notice":"GroundRules: Original legal text. Not legal advice."}