N.J. Admin. Code § 2:52-3.1 - Change in source of supply

(a) A dealer may change his source of supply or engage an additional source of supply of milk and milk products upon approval by the Director as follows:

1. With a two week notice to the present supplier(s) and to the Division of Marketing and Development. Such notice shall be filed by the dealer making the change on forms provided for that purpose.

2. Without notice if the Director finds after investigation that the supplier(s) is failing to provide adequate service or to supply products desired by the dealer requesting the change or is supplying milk and milk products which do not meet minimum standards of the appropriate health authority.

3. Without notice, if such change is mutually agreeable to all parties.

4. Without notice, if the business is changing ownership, and the new owner accepts two or less deliveries of milk or milk products from the supplier. (If the new owner accepts three or more deliveries of milk and milk products from the supplier, notice shall be required.) As used herein "changing ownership" must be a bona fide transfer of title to the new owner(s). Transfers of title to another member of the owner's immediate family or partial change of ownership shall not be considered a change in ownership for purposes of this regulation.

5. Without notice, if the authorized supplier transfers the account to another supplier; however, if the licensed dealer is notified in writing of the transfer and accepts three deliveries from the new supplier after the date the written notice is received by the dealer, notice shall be required.

6. Without notice if yogurt is the only product involved.

(b) Approval to change supplier(s) may be denied if the Director determines through investigation that the offer violates the Milk Control Act or rules and regulations issued pursuant thereto. Also, until the dealer pays all indebtedness, less any legal rebates and discounts earned for milk and fluid milk products purchased from the previous supplier(s) approval to change supplier(s) shall be withheld.

(c) To provide an orderly flow of milk and milk products, all requests for assistance related to, but not limited to, this section must be filed with the Director of Marketing and Development within 30 days from date of last business transaction between the dealer and the previous supplier; and shall include the location of the store, amount in dispute, any attempted resolution and any other information necessary for a determination of compliance and/or the administration and enforcement of the applicable New Jersey statutes and rules.

Notes

N.J. Admin. Code § 2:52-3.1

As amended, R.1984 d.488, effective 11/5/1984.
See: 16 New Jersey Register 2028(a), 16 New Jersey Register 3004(b).
Deleted old (a)1; renumbered (a)2-3 as (a)1-2; added new (a)3.
Amended by R.1985 d.75, effective 3/4/1985.
See: 16 New Jersey Register 3071(a), 17 New Jersey Register 576(a).
(a)4 and 5 added. Amended by R.1985 d.335, effective 7/1/1985.
See: 17 New Jersey Register 1012(a), 17 New Jersey Register 1645(b).
(a)6 added. Amended by R.2005 d.327, effective 10/17/2005.
See: 37 New Jersey Register 1913(a), 37 New Jersey Register 3968(a).
In (b), added "through investigation" following "Director determines"; added (c).