Manufacturing & Distribution Client Advisory – Sales Representative Laws and Agreements

    By Stephen E. Story, Manufacturing & Distribution

    Thirty-six states and Puerto Rico have laws that protect sales representatives to ensure manufacturers that contract with them, timely pay them, particularly after termination. Many of these statutes permit an award of double or treble damages to the sales representatives, plus attorneys’ fees, upon a finding that the acts have been violated. Some of these statutes defer to the written contract in place between the manufacturer and the sales representative. Accordingly, manufacturers can often substantially improve their default position under these statutes by having strong, enforceable sales representative contracts in place.

    Manufacturers should periodically review their sales representative agreements to ensure the provisions governing payment of the sales representatives, particularly after termination, are crystal clear, to better avoid potential litigation over disputed sales representative commission payments.

    We routinely draft and review sales representative agreements for manufacturer clients. If you would like us to review your existing sales representative agreements or draft a new agreement for your use with sales representatives, contact Stephen E. Story at Kaufman & Canoles, email:, telephone: 757 624 3257, fax: 888-360-9092, or any member of our Manufacturing & Distribution Team.

    The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2024.