Sales Representation Contractual Relations Act

Summary

Sales Representation Contractual Relations Act - Title I: General Provisions - Sets forth findings and definitions. Title II: Contracts Between Sales Representatives and Principals - Subjects a principal to an indemnification action by a sales representative where a written contract exists between them under which the sales representative solicits orders from accounts and prospective accounts for the merchandise of the principal. Enumerates items to be included in any such written contract in order to conform with this Act. Title III: Indemnification - Exempts a principal from any indemnification action brought under this Act where: (1) a contract exists between the principal and sales representative which meets the requirements of Title I; or (2) the conduct of the principal for which indemnification is sought occurred before the sales representative had solicited orders on behalf of the principal for a period of 18 months. Permits a sales representative to bring an action for indemnification against a principal in any U.S. district court or State court where the principal: (1) terminates, without good cause, a sales representative from the assignment to solicit orders; or (2) reduces the size of any geographical territory assigned, the rate of commission paid, or the number of accounts assigned to a sales representative. Sets forth a formula for the computation of the amount of indemnification a principal shall pay in such an action. Provides that in an indemnification brought under this Act, the burden of proof shall be placed on the principal to show that the termination or reduction was for good cause if the sales representative presents certain evidence.

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1 official file

• Introduced in House

  summary · EN · 19 July 1983

  Open at official source

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