Arizona Laws 44-1557. Required provisions in agreements between distributors and dealers
Every agreement between a distributor and a dealer shall be in writing and contain:
Terms Used In Arizona Laws 44-1557
- 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
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Writing: includes printing. See Arizona Laws 1-215
1. In the absence of any express agreement, the dealer shall not be required to participate financially in the use of any premium, coupon, give-away, or rebate in the operation of his retail outlet, provided that the distributor may require the dealer to distribute to customers premiums, coupons or give-aways which are furnished to the dealer at the expense of the distributor.
2. The term of the initial agreement between the distributor and the dealer relating to specific premises shall not be less than one year and the term of all subsequent agreements between the distributor and the dealer shall not be for fewer than three years, provided that where the distributor is the lessee of the premises, this paragraph shall not be construed to require a term of greater duration than the remainder of the term to which the distributor is entitled under its lease, together with any renewal rights which the distributor may have, and further provided that notwithstanding any other provision of this article to the contrary a distributor may reserve the right to cancel such agreement without cause upon thirty days’ notice during the first six months of the initial term thereof when no previous distributor-dealer relationship existed between the parties thereto. Agreements entered into by distributors who are not also engaged in the refining of gasoline may be for shorter terms.