A.R.S. § 3-518: Exempt transactions

This article shall not prevent:

1. A producer of fruit or vegetables in the state from selling or delivering his products unpacked and unmarked in bulk to a packer in this state for grading, packing or storage.

2. A producer or packer from manufacturing the products into a by-product.

3. A producer from selling the products unpacked or unmarked to a person engaged in the operation of a commercial by-products factory for the purpose of being used in the manufacture of a by-product for resale.