A.R.S. § 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.

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.