Arizona Laws 44-1554. Prohibited practices
It is a violation of this article for any distributor directly or indirectly or through any officer, agent or employee to engage in any of the following practices:
Terms Used In Arizona Laws 44-1554
- Dealer: means any person engaged in the retail sale of petroleum products supplied under a distributorship, franchise or other agreement, entered into with a distributor. See Arizona Laws 44-1551
- Distributor: means any person engaged in the sale, consignment or other distribution of petroleum products to dealers at retail outlets serving the general motoring public. See Arizona Laws 44-1551
- Good cause: means the failure of a dealer to comply with those express provisions of the franchise except any that may be unconscionable. See Arizona Laws 44-1551
- Good faith: includes the duty of a party to act in a fair and equitable manner in the performance and in demanding performance of the franchise. See Arizona Laws 44-1551
- Petroleum products: means motor vehicle fuels and lubricants. See Arizona Laws 44-1551
- sell: means a sale or any other disposition of a security or interest in a security for value and includes a contract to make such sale or disposition. See Arizona Laws 44-1801
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. To prohibit directly or indirectly the right of free association among dealers for any lawful purpose.
2. To fail to act in good faith in performing or complying with any terms, provisions of or collateral to a franchise.
3. To terminate or cancel a franchise without good cause.
4. To use undue influence to induce a dealer to surrender any right given to the dealer by any provision contained in the franchise.
5. To cancel, terminate, fail to renew or to threaten the cancellation, termination or nonrenewal of any franchise because of the dealer’s failure to purchase merchandise or products sold by the distributor where the requirement that the dealer sell exclusively the merchandise or products of the distributor would be a violation of any law, rule or regulation of this state or of the United States.
6. To change or modify any restrictions upon nonpetroleum related business activities of the gasoline dealer during the term of his franchise.
7. To unreasonably reduce, limit or curtail the supply of gasoline or other petroleum products to any dealer.
8. To cancel or terminate a franchise solely to secure for its own account the distributor’s more successful or profitable franchise stations.
9. To place unreasonable restrictions upon nonpetroleum related business activities of the dealer.