38.2-4505 - Liability of participants. - Virginia Statutes

§ 38.2-4505. Liability of participants.

A. All dentists or optometrists participating in a plan shall be jointly andseverally liable on all contracts made for the purpose of the plan by thenonstock corporation as agent for them. Each contract may be executed andsigned by their agent on their behalf. A contract so signed shall be bindingon the principals and not on the agent.

B. Actions for breach of these contracts may be brought against theprincipals by naming the agent as the sole defendant. A judgment in favor ofthe plaintiff may be satisfied out of the assets of the nonstock corporationor out of the assets of each of the principals.

C. Each participant shall be liable for his own torts and not for the tortsof any other participant or of the agent.

(1980, c. 682, § 38.1-896; 1986, c. 562.)