Arizona Laws 28-4462. Refusal to honor succession to ownership; notice required
A. If a manufacturer believes that good cause exists for refusing to honor the succession to ownership interest of the owner of a new motor vehicle dealer by a family member of a deceased or incapacitated owner of a new motor vehicle dealer under the existing franchise agreement, the manufacturer, not more than sixty days after the receipt of either the notice that is prescribed by section 28-4461, subsection B or any personal or financial data that the manufacturer has requested pursuant to section 28-4461, whichever is received later, may serve on the designated family member notice of its refusal to honor the succession and of its intent to discontinue the existing franchise with the dealer no sooner than one hundred twenty days after the notice is served.
Terms Used In Arizona Laws 28-4462
- Dealer: means a person who is engaged in the business of buying, selling or exchanging motor vehicles, trailers or semitrailers and who has an established place of business and has paid fees pursuant to section 28-4302. See Arizona Laws 28-101
- 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
- Manufacturer: means any person who either:
(a) Manufactures or assembles new motor vehicles. See Arizona Laws 28-4301
- 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
- Motor vehicle dealer: means a new motor vehicle dealer, a used motor vehicle dealer, a public consignment auction dealer, a broker or a wholesale motor vehicle auction dealer, excluding a person who comes into possession of a motor vehicle as an incident to the person's regular business and who sells, auctions or exchanges the motor vehicle. 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
- Owner: means :
(a) A person who holds the legal title of a vehicle. See Arizona Laws 28-101
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- State: means a state of the United States and the District of Columbia. See Arizona Laws 28-101
B. The notice of refusal and discontinuance must state the specific grounds for the refusal to honor the succession and of the manufacturer’s intent to discontinue the existing franchise with the new motor vehicle dealer no sooner than one hundred twenty days after the notice is served.
C. If the notice of refusal and discontinuance is not timely served on the designated family member, the franchise shall continue in effect subject to termination only as otherwise permitted by this chapter.
D. If there is a conflict between the written instrument filed by the motor vehicle dealer with the manufacturer designating a certain person as the motor vehicle dealer’s successor and this section, the written instrument filed with the manufacturer governs.