McDowell owned and operated Big River Harley Davidson in Wapello, Iowa. As required by law, McDowell took

Question:

McDowell owned and operated Big River Harley Davidson in Wapello, Iowa. As required by law, McDowell took out a retail motor vehicle dealer's surety bond for $35,000 with United Fire and Casualty Insurance. The bond protects retail customers who get stuck when a motor vehicle because of fraud or some other reason, does not deliver a vehicle that has been paid for. The surety bond was in force when Big River went out of business and McDowell left the state. While in business, Big River sold a Harley to Elworth Harley Davidson in Norfolk, Nebraska. Elworth paid $12,000 for the Harley that was never delivered. Elworth sued United Fire as surety for the $12,000. Can Elworth recover? [United Fire and Casualty v. Acker, 541 N.W.2d 517, Sup. Ct., Iowa (1995)]

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...