***This is not a certified version of the text contained in the actual statute

KRS 230.357

Written bill of sale or acknowledgment of purchase -- Requirements --
Auction requirements -- Dual agents -- Disclosures required -- Violations --
Auction disclosures not required -- Limitation on application of section.
(1) Any sale, purchase, or transfer of an equine used for racing or showing, including
prospective racehorses, breeding prospects, stallions, stallion seasons, broodmares,
or weanlings, or any interest therein, shall be:
(a) Accompanied by a written bill of sale or acknowledgment of purchase and
security agreement setting forth the purchase price; and
(b) Signed by both the purchaser and the seller or their duly authorized agent or,
in a transaction solely relating to a season or fractional interest in the stallion,
signed by the syndicate manager or stallion manager.
(2) In circumstances where a transaction described in subsection (1) is accomplished
through a public auction the bill of sale requirement described in subsection (1) may
be satisfied by the issuance of an auction receipt, generated by the auction house,
and signed by the purchaser or the purchaser's duly authorized agent. An agent who
signs an auction receipt on behalf of his or her principal shall do so only if
authorized in writing. When presented with such authorization, all other parties to
the transaction may presume that an agent signing on behalf of his or her principal
is duly authorized to act for the principal.
(3) It shall be unlawful for any person to act as an agent for both the purchaser and the
seller, which is hereby defined as a dual agent, in a transaction involving the sale,
purchase, or transfer of an interest in an equine used for racing or showing,
including prospective racehorses, breeding prospects, stallions, stallion seasons,
broodmares, or weanlings, or any interest therein, without:
(a) The prior knowledge of both the purchaser and the seller; and
(b) Written consent of both the purchaser and the seller.
(4) It shall be unlawful for a person acting as an agent for either a purchaser or a seller
or acting as a dual agent in a transaction involving the sale, purchase, or transfer of
an equine used for racing or showing, including prospective racehorses, breeding
prospects, stallions, stallion seasons, broodmares, or weanlings, or any interest
therein, to receive compensation, fees, a gratuity, or any other item of value in
excess of five hundred dollars ($500) and related directly or indirectly to such
transaction from an individual or entity, including any consigner involved in the
transaction, other than an agent's principal, unless:
(a) The agent receiving and the person or entity making the payment disclose in
writing the payment to both the purchaser and seller; and
(b) Each principal for whom the agent is acting consents in writing to the
payment.
(5) Any person acting as an agent for a purchaser or seller or acting as a dual agent in a
transaction involving the sale, purchase, or transfer of an equine used for racing or
showing, including prospective racehorses, breeding prospects, stallions, stallion
seasons, broodmares, or weanlings, or any interest therein, shall, upon request by
his or her principal or principals, furnish copies of all financial records and financial
documents in the possession or control of the agent pertaining to the transaction to
the principal or principals. However, disclosure of compensation arrangements
described in subsection (7) of this section shall not be required. For purposes of this
subsection, financial records shall not include the agent's or owner's work product
used to internally evaluate the equine.
(6) Any person injured by a violation of this section shall recover treble damages from
persons or entities violating this section, and the prevailing party in any litigation
under this section shall be entitled to an award of costs of the suit, reasonable
litigation expenses, and attorney's fees. As used in this section, treble damages shall
equal three (3) times the sum of:
(a) The difference, if any, between the price paid for the equine and the actual
value of the equine at the time of sale; and
(b) Any payment made in violation of subsection (4) of this section.
(7) Nothing in this section shall require disclosure of compensation arrangements
between a principal and an agent where no dual agency exists, where the agent is
acting solely for the benefit of his or her principal, and where the agent is being
compensated solely by his or her principal.
(8) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, for
transactions contemplated by this section that are accomplished through a public
auction, this section shall not require disclosure of the reserves, the identity of the
principals, or the auctioneer's commissions. Auction companies shall not be deemed
to be dual agents for all purposes under this section.
(9) The provisions of this section shall not apply to the sale, purchase, or transfer of an
equine used for showing if the sale, purchase, or transfer does not exceed ten
thousand dollars ($10,000).
(10) No person shall be held liable under this section unless that person has actual
knowledge of the conduct constituting a violation of this section.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 70, sec. 1, effective July 12, 2006.