Can a motor vehicle salesman be personally liable for claims exceeding their surety bond?

A motor vehicle salesman can indeed be personally liable for claims exceeding their surety bond. In most states, including Colorado, a surety bond is a form of protection that provides a financial guarantee that the salesman will uphold their obligations, such as complying with state laws and the automotive sales code. However, this bond is not a limit on liability; instead, it serves as a means for consumers to claim certain damages.

If a claim exceeds the amount covered by the surety bond, the salesman can still be held personally responsible for the remainder. This means that if the bond does not cover the full extent of damages incurred by a consumer due to the salesperson's actions or omissions, the individual salesperson may have to pay out of their own resources to satisfy the claim.

This principle reinforces the importance of ethical practices and compliance in the sales profession, as salespeople need to ensure they conduct their business in a manner that minimizes risk and potential liability.