Powersports And Motor Vehicle Sales Bond Requirement

Preexisting law requires motor vehicle and powersports dealers, salespersons, buyer agents, wholesale auction dealers, business disposers, and wholesalers to have bonds to compensate people for fraud or a violation of the motor vehicle dealer statutes if the violation is designated as recoverable by the motor vehicle dealer board. The act requires the violation to be related to fraud in order for a person to recover from the bond. A person may recover from a bond in an action if the board issues a final agency order with a finding of fraud. (Note: This summary applies to this bill as enacted.)