Montana Attorney General Opinion 15-575

Opinion No. 575 Wholesale Dealel's-Bonds, Protection of-Non-Residents Pt·oteeted. HELD: The wholesale dealer's bond provided for by Chapter 164. Laws of 1988, protects sellers who sell merchan- dise to the wholesnle dealer in another state as well as sellers who make such a sale within the State of l'iontana. July 18, 1934. You haye submitted the question whether the seller of merchandise in nnother state, to a trucker, who, after making the purchase in such other state, transports the mercrandise by truck to Montana, and sells it within the State of Montnna, is protected by the wholesaler's bond provided fOI' hy Chnpter 164, Laws of 1938. Subdivision b of said chnpter, pro- vides: "Before issuing any license as pro- "ided by this Act, the Commissioner shall require the applicant to execute and file with him a good and suffi- cient surety bond in the sum of Five Thousand Dollars ($5000.00) to the State of Montana, executed by the ap- plicant as principal and a surety com- flany qualified and authorized to do business in this state, as surety; the form thereof to be fixed by the Com- miSSioner, conditioned for the faith- ful performnnce of his duties as a dealer at wholesale, for the obserY- nnce of all laws relating to the carrying on of the business of a dealer at wholesale, for the payment when due. of the purchase price of produce purchased by him, for the prompt reporting of sales as required by law to all persons consigning pro- duce to the dealer as licensee for sale on commission and the prompt pay- OPINIO~S OF THE ATTORNEY GENERAL 399 ment to persons entitled thereto of the proceeds of such sales less lawful charges, disbursements and commis- ~ion. Such bond shall CO\'er all whole- sale produce business transacted in whole or in part within the State of ~lontana." The question arises whether the ef- fect of the last sentence is to exclude from protection of the bond, seller of merchandise in another state. In my opinion this sentenc"e has reference to the location of the wholesale produce hu~iness and not to the situs of the contract and that it was the intention of the legislature, in using this sen- tence, to enlarge the scope of the sta t- ute as to persons who are required to obtain a license and furnish a bond rather than to restrict the obligation of a wholesale dealer on this bond to purchases made within the state. Your question should, therefore, be answered in the affirmative.