Section 672.520 Breach of Contract

Section 672

Section 672.520   Breach of

Contract

a)         Upon determination by the Department that a substantial breach

of a WIC Vendor Contract has been committed by a Vendor, the Department will repudiate

that Contract and terminate the Vendor Authorization.

b)         Any repudiation of the Vendor Contract by the Department and

resultant termination of the WIC Retail Vendor Contract will take effect only

after the Vendor receives 15-day advance written notification of the adverse

action and the causes for, and effective date of, that action.

c)         The sale, lease, or cessation of a business authorized by the

WIC Vendor Contract will void the Vendor Contract.  Any change in location of

the business authorized by the WIC Vendor Contract may be subject to review and

approval by the Department in accordance with the Vendor Contract.

d)         Should the vendor qualify as a 50% Vendor during the period of

the contract, the Vendor Contract will become void.  If the Department

determines that a vendor qualifies as a 50% Vendor during the contract, it will

give the vendor 15 days' notice of the determination and declare the contract

void.  The vendor may reapply for WIC approval 90 days after the notice by

showing that the business model has changed and that it will not be a 50%

Vendor.  Upon approval by the Department, the contract may be reinstated.  The Vendor

may appeal a determination made during the contract that it is a 50% Vendor

pursuant to Section 672.600, but the appeal will not delay voiding of the contract.