A. If a timely objection has been filed and, if the objection is to the establishment of a new motor vehicle dealership, the objection meets both of the reasons prescribed by section 28-4454, subsection B, the director shall:

Terms Used In Arizona Laws 28-4456

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Director: means the director of the department of transportation. See Arizona Laws 28-101
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Financial institution: means a bank, trust company, savings and loan association, credit union, consumer lender, international banking facility or holding company that is licensed, regulated or insured by the department of insurance and financial institutions, the federal deposit insurance corporation, the office of thrift supervision, the comptroller of the currency, the national credit union share insurance fund or the national credit union administration. See Arizona Laws 28-4301
  • Franchise: means a contract between two or more persons if all of the following conditions are included:

    (a) A commercial relationship of definite duration or continuing indefinite duration is involved. See Arizona Laws 28-4301

  • Franchisor: means a person who both:

    (a) Manufactures or distributes new motor vehicles. See Arizona Laws 28-4301

  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Motor vehicle: means an automobile, motor bus, motorcycle, truck or truck tractor or any other self-propelled vehicle, trailer or semitrailer. See Arizona Laws 28-4301
  • New motor vehicle: means a motor vehicle, other than a used motor vehicle, that is held either for:

    (a) Sale by the franchisee who first acquired the vehicle from the manufacturer or distributor of the vehicle. See Arizona Laws 28-4301

  • State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
  • Testimony: Evidence presented orally by witnesses during trials or before grand juries.
  • Transcript: A written, word-for-word record of what was said, either in a proceeding such as a trial or during some other conversation, as in a transcript of a hearing or oral deposition.
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

1. Enter an order fixing the time and place of a hearing on the objection. The hearing shall be held within seventy-five days after the date of the order.

2. Send by certified mail with return receipt requested a copy of the order to the same persons entitled to receive a copy of the notice provided for in section 28-4453.

3. Appoint a member of the Arizona state bar who shall be designated as an administrative law judge to conduct the hearing and who shall be compensated under a contractual relationship.

B. Prehearing discovery shall be conducted pursuant to the Arizona rules of civil procedure.

C. At the hearing the franchisor has the burden of proof to establish that good cause exists to terminate or not renew the franchise. If there is an objection to the establishment of a new motor vehicle dealership, the administrative law judge shall determine that good cause does or does not exist to establish the proposed dealership.

D. Evidence that would be admissible under the issues in such an action in a state or federal court is admissible in a hearing held by the administrative law judge. The administrative law judge shall reasonably apportion all costs between the parties, including compensation for the administrative law judge’s services.

E. The administrative law judge may:

1. Issue subpoenas.

2. Administer oaths.

3. Compel the attendance of witnesses and the production of books, papers, documents and all other evidence.

4. Apply to the superior court in the county in which the hearing is held for a court order enforcing this article.

F. A transcript of the testimony of all witnesses taken at the hearing shall be made and preserved. Within forty-five days after the hearing the administrative law judge shall make written findings of fact and conclusions and enter a final order.

G. A party to the hearing before the administrative law judge may appeal pursuant to Title 12, Chapter 7, Article 6. An appeal of a decision of an administrative law judge has preference over other civil matters and shall be heard at the earliest practicable date.

H. As a condition to the appeal, the appealing party shall file a cash bond, supersedeas bond or its equivalent with the director. The bond shall be sufficient in amount to cover the damages incurred by the prevailing party, but the amount of the bond shall not exceed the lesser of fifty thousand dollars or ten per cent of the appealing party’s net worth. The party may file alternatives to cash such as certificates of deposit purchased from a financial institution licensed to do business in this state or bonds of the United States government.