Utah Code 41-3-404. Right of action against dealer, salesperson, crusher, body shop, or surety on bond
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(1) A person may maintain an action against a dealer, crusher, or body shop on the corporate surety bond if:
Terms Used In Utah Code 41-3-404
- Body shop: means a person engaged in rebuilding, restoring, repairing, or painting the body of motor vehicles for compensation. See Utah Code 41-3-102
- Crusher: means a person who crushes or shreds motor vehicles subject to registration under Chapter 1a, Motor Vehicle Act, to reduce the useable materials and metals to a more compact size for recycling. See Utah Code 41-3-102
- Dealer: includes a representative or consignee of any dealer. See Utah Code 41-3-102
- Fraud: Intentional deception resulting in injury to another.
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- Salesperson: means an individual who for a salary, commission, or compensation of any kind, is employed either directly, indirectly, regularly, or occasionally by any new motor vehicle dealer or used motor vehicle dealer to sell, purchase, or exchange or to negotiate for the sale, purchase, or exchange of motor vehicles. See Utah Code 41-3-102
(1)(a) the person suffers a loss or damage because of:(1)(a)(i) fraud;(1)(a)(ii) fraudulent representation; or(1)(a)(iii) a violation of Section41-3-210 ; and(1)(b) the loss or damage results from the action of:(1)(b)(i) a licensed dealer;(1)(b)(ii) a licensed dealer’s salesperson acting on behalf of the dealer or within the scope of the salesperson’s employment;(1)(b)(iii) a licensed crusher; or(1)(b)(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 .