Arizona § 28-4363 - Franchises; filing agreement; violation; classification

§ 28-4363. Franchises; filing agreement; violation; classification

A. At the time a franchisee applies for a license, the franchisee shall file with the director a certified copy of the franchisee's written agreement with the manufacturer and a certificate of appointment as dealer or distributor.

B. The certificate of appointment shall be signed as follows:

1. By an authorized agent of the manufacturer of domestic vehicles on direct manufacturer-dealer agreements.

2. If the manufacturer is wholesaling through an appointed distributorship, by an authorized agent of the distributor on indirect distributor-dealer agreements.

3. By an authorized agent of the importer on direct importer-dealer agreements of foreign made vehicles.

4. By an authorized agent of the distributor on indirect distributor-dealer agreements.

5. For a distributor's certificate of appointment, by an authorized agent of the manufacturer of domestically manufactured vehicles or by an authorized agent of the manufacturer or importer of foreign made vehicles.

C. A franchisee is not required to file a written agreement or certificate of appointment if the manufacturer on direct dealerships, the distributor on indirect dealerships or the importer on direct dealerships meets all of the following conditions:

1. Utilizes the identical basic agreement for all of its franchised dealers or distributors in this state.

2. Certifies in the certificate of appointment that this blanket agreement is on file and the written agreement with the dealer or distributor, respectively, is identical with the filed blanket agreement.

3. Has filed with the director one such agreement together with a list of franchised dealers or distributors.

D. The manufacturer, distributor or importer shall notify the director at least forty-five days before any proposed revisions of or additions to the basic agreement on file or of any franchisee supplements to the agreement.

E. A manufacturer, other than a manufacturer of a recreational vehicle as defined in section 41-4001, shall not modify a franchise during the term of the franchise or on the renewal of a franchise if the modification substantially and adversely affects the new motor vehicle dealer's rights, obligations, investment or return on the investment without giving at least forty-five days' notice of the proposed modification to the new motor vehicle dealer unless the change is required by law. Within the forty-five day period, the new motor vehicle dealer may file with the director and serve notice on the manufacturer of an objection requesting a determination pursuant to article 5 of this chapter of whether there is good cause for permitting the proposed modification.

F. Annual renewal of certificates filed as provided in this section is not required.

G. A manufacturer on direct dealerships, a distributor on indirect dealerships or an importer on direct dealerships who has filed with the director an agreement used by all of its franchisees in this state together with a list of all such franchisees and who knowingly fails to notify the director at least forty-five days before any proposed revisions, changes or additions to the materials filed is guilty of a class 2 misdemeanor.