Utah Code 48-5-405. Failure event
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(1) In the case of a failure event, legal personality and limited liability are maintained to the extent necessary to protect decentralized autonomous organization members and participants from personal liability.
Terms Used In Utah Code 48-5-405
- Decentralized: means that decision-making is distributed among multiple persons. See Utah Code 48-5-101
- Decentralized autonomous organization: means an organization:(6)(a) created by one or more smart contracts;(6)(b) that implements rules enabling individuals to coordinate for decentralized governance of an organization; and(6)(c) that is an entity formed under this chapter. See Utah Code 48-5-101
- Failure event: means an error in the decentralized autonomous organization's software code or an exploit that:
(10)(a) renders the decentralized autonomous organization inoperative; or(10)(b) fundamentally changes the expected operation of the decentralized autonomous organization. See Utah Code 48-5-101- 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(2) A failure event may trigger liability on the person deploying or upgrading the decentralized autonomous organization if that person:(2)(a) acted in bad faith; or(2)(b) engaged in gross negligence. - Failure event: means an error in the decentralized autonomous organization's software code or an exploit that: