41-3-404. Right of action against dealer, salesperson, crusher, body shop, or surety on bond.

182 words·~1 min read·/ut/title-41/chapter-3/41-3-404

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A person may maintain an action against a dealer, crusher, or body shop on the corporate surety bond if:

(a)the person suffers a loss or damage because of:

(i)fraud;

(ii)fraudulent representation; or

(iii)a violation of Section 41-3-210 ; and

(b)the loss or damage results from the action of:

(i)a licensed dealer;

(ii)a licensed dealer's salesperson acting on behalf of the dealer or within the scope of the salesperson's employment;

(iii)a licensed crusher; or

(iv)a body shop.

(2)Successive recovery against a surety on a bond is permitted, but the total aggregate liability on the bond to all persons making claims, regardless of the number of claimants or the number of years a bond remains in force, may not exceed the amount of the bond.

(3)A cause of action may not be maintained against any surety under any bond required under this chapter except as provided in Section 41-3-205 .

Amended by Chapter 239 , 1999 General Session