Resources
Empowered sales rep protects his contract rights; delivers strong jolt to breaching principal
William Valle’s commission lawsuit against Powertech Industrial Co. Ltd. offers a little bit of everything.
Two versions of a contract, changing commission rates, enforceability questions, and the duty of good faith and fair dealing are all raised in this dispute. (So too is the perennial employee v. independent contractor battle, but that part of their contest will be saved for another day.)
Not so fast! Rep’s statutory rights are protected from getting contracted away
While sales rep protection statutes vary state to state, most contain a provision invalidating any contract term that would negate or limit the rights provided or would make the contract subject to the laws of a different state.
Sales rep statute protects a rep’s earned commissions upon actual and constructive termination
… An exploitative principal angling to replace its longtime independent rep and withhold the commissions due could find a means to escape the statute’s reach by stopping just short of affecting a full termination.
Tips to a Better Rep Agreement
A sales representative typically will review a sales representative agreement twice — at the start of its relationship with a new principal, and then at the end.
Good facts and good judge support rep’s claim for breach of the duty of good faith and fair dealing
With surprising regularity, principals are taking legally flawed positions when reps must resort to legal action to collect commissions due, particularly following a termination. The assertion of defenses doomed to fail increases costs to both sides, fails to advance the litigation and generally serves no one’s interests.
Buying or selling: Key factors for sales rep agency valuation
With surprising regularity, principals are taking legally flawed positions when reps must resort to legal action to collect commissions due, particularly following a termination. The assertion of defenses doomed to fail increases costs to both sides, fails to advance the litigation and generally serves no one’s interests.
As a Public Service, Rep Lawyers Offer Free Advice to Principals
With surprising regularity, principals are taking legally flawed positions when reps must resort to legal action to collect commissions due, particularly following a termination. The assertion of defenses doomed to fail increases costs to both sides, fails to advance the litigation and generally serves no one’s interests.
Sales Rep Prevents Improper Termination with Rare Injunction
Sales rep lawsuits commonly seek to recover unpaid commissions following the termination of a rep contract. When Apex Technology Sales, Inc., a Minnesota sales rep firm, was terminated, however, it went unorthodox, responding with an underutilized remedy: seeking injunctive relief.
Changing a Commission Plan Is No Shoe-In
Unscrupulous principals might originally plan to pay the agreed-upon commissions to their reps, and will perhaps honor the contract terms for a while, or at least until the orders start coming in reliably.
From Toothless to Tigers: A Look at State Sales Rep Statutes
“Hey, Adam,” begins many an incoming office call, “the principal who owes me back commissions didn’t remember that our contract says Tennessee law (or Utah, Colorado, New Jersey, Georgia, etc.) applies. I can get triple commissions, right?”
“Well,” begins the formal, technical response to many such calls, while stalling for time. Then, the very first legal phrase taught in law school is invoked: “That depends.”