                                 CODE OF VIRGINIA

BOND OF DEALER; RIGHT OF ACTION FOR FRAUDULENT ACTS (§ 29.1-810)

A. Before any watercraft dealer&#8217;s license shall be issued by the Director
to any applicant, such applicant shall procure and file with the Director a good
and sufficient bond in the amount of $5,000 with corporate surety duly licensed
to do business within the Commonwealth, in such form as approved by the Attorney
General and conditioned that the applicant shall not practice fraud, make any
fraudulent representation or violate any of the provisions of this chapter in
the conduct of the business for which he is licensed. The Director may suspend
the dealer&#8217;s license without a hearing for such period as the dealer does
not have a good and sufficient bond on file with the Director. Such suspension
shall end when the bond is delivered to the Department.

B. If any person shall suffer any loss or damage by reason of any fraud
practiced on him or fraudulent representation made to him by a licensed
watercraft dealer or one of such dealer&#8217;s salesmen acting for the dealer
or within the scope of the employment of such salesman, or shall suffer any loss
or damage by reason of the violation by such dealer or salesman of any of the
provisions of this chapter, such person shall have a right of action against
such dealer and the sureties upon his bond. Such person may recover such
damages, as a court or jury may assess against such dealer as a proximate result
of such fraud or fraudulent misrepresentation, from such surety who shall be
subrogated to the rights of such person against such dealer.

HISTORY: 1988, c. 592.