41-3-404. Right of action against dealer, salesperson, crusher, body shop, or surety
on bond.
(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
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Last revised: Thursday, May 01, 2008