Resources
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.
Maximizing the qualified business income tax deduction for sole owner/sole employee businesses
The 2017 Tax Act introduced a new deduction for pass-through entities. Owners of S corporations, sole proprietorships, partnerships and limited liability companies treated as sole proprietorships are entitled to an income tax deduction of up to 20 percent of their qualified business income (“QBI”) on their personal income tax returns. Despite the fact that the QBI deduction has been available for years, many individuals starting their own businesses as sole owner companies with no employees continue to experience confusion in selecting the optimal structure to take advantage of the 20 percent tax deduction.
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.”