Third Substitute S.B. 239

Senator Mike Dmitrich proposes the following substitute bill:

1 UNFAIR BUSINESS PRACTICES
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Mike Dmitrich
5 Ron AllenCurtis S. Bramble 6
7 LONG TITLE
8 General Description:
9 This bill enacts provisions within the Utah Criminal Code related to unfair competition.
10 Highlighted Provisions:
11 This bill:
12 . defines unfair competition; and
13 . provides a private right of action for a person injured by unfair competition.
14 Monies Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 ENACTS:
20 13-5a-101, Utah Code Annotated 1953
21 13-5a-102, Utah Code Annotated 1953
22 13-5a-103, Utah Code Annotated 1953
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 13-5a-101 is enacted to read:

26 CHAPTER 5a. UNFAIR COMPETITION ACT
27 13-5a-101. Title.
28 This chapter is known as the "Unfair Competition Act."
29 Section 2. Section 13-5a-102 is enacted to read:
30 13-5a-102. Definitions.
31 As used in this chapter:
32 (1) "Control" means:
33 (a) ownership of more than 5% of the voting shares or ownership interests of an entity;
34 (b) the power to vote more than 5% of the voting shares of an entity; or
35 (c) the ability to influence the management of an entity.
36 (2) "Depository institution" is as defined in Section 7-1-103 .
37 (3) (a) Except as provided in Subsection (3)(b), "unfair competition" means a business
38 act or practice that:
39 (i) is unlawful, unfair, or fraudulent; and
40 (ii) leads to a material diminution in value of intellectual property.
41 (b) Notwithstanding Subsection (3)(a), "unfair competition" does not include the
42 departure and hiring of an employee by a competitor.
43 Section 3. Section 13-5a-103 is enacted to read:
44 13-5a-103. Private action for unfair competition.
45 (1) (a) Except as provided in Subsection (2), a person injured by unfair competition
46 may bring a private cause of action against a person who engages in unfair competition.
47 (b) In an action under this Subsection (1), a person injured by unfair competition may
48 recover:
49 (i) actual damages;
50 (ii) costs and attorney fees; and
51 (iii) if the court determines that the circumstances are appropriate, punitive damages.
52 (2) A person may not bring an action described in Subsection (1) against:
53 (a) a depository institution; or
54 (b) an entity that:
55 (i) controls a depository institution;
56 (ii) is controlled by an entity that controls a depository institution; or

57 (iii) is controlled by a depository institution.