Arizona Laws 44-1558. Obligation of distributor to repurchase upon termination of agreement; designation of successor in interest
A. In the event of any termination, cancellation or failure to renew, whether by mutual agreement or otherwise, a distributor shall make or cause to be made a good faith offer to repurchase from the dealer, his heirs, successors and assigns, at the current wholesale prices, any and all merchantable products purchased by such dealer from the distributor, provided that the distributor shall have the right to apply the proceeds against any existing indebtedness owed to him by the dealer and that such repurchase obligation is conditioned upon there being no other claims or liens against such products by or on behalf of other creditors of the dealer. Such repurchase shall not constitute a waiver of the dealer’s other rights and remedies under this article.
Terms Used In Arizona Laws 44-1558
- Adult: means a person who has attained eighteen years of age. See Arizona Laws 1-215
- 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
- franchise agreement: means a written agreement between a distributor and a dealer under which the dealer is granted the right to use a trademark, trade name, service mark or other identifying symbol or name owned by the distributor, under which the dealer is granted the right to occupy premises owned, leased, or controlled by the distributor, for the purpose of engaging in the retail sale of petroleum products of the distributor. 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
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
B. The distributor shall accept the designee of the dealer as the successor in interest to his rights and obligations under a franchise agreement if:
1. Prior to his death, the dealer notifies the distributor of the designation of his surviving spouse or child as his successor in interest.
2. At the time of his death, the surviving spouse or adult child meets the reasonable qualifications required of dealers by the distributor for the operation of service stations.