House Bill 0305
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2000 HB 305
By Representative Valdes
1 A bill to be entitled
2 An act relating to contracts between sales
3 representatives and principals for wholesale
4 sales contracts; amending s. 686.201, F.S.;
5 revising the requirements for contracts between
6 sales representatives who solicit orders on
7 behalf of principals; providing that such
8 contracts may be oral or written; providing
9 that a principal may be in-state or
10 out-of-state; defining the term "termination"
11 for purposes of the section; providing for the
12 due date of certain commissions; providing for
13 triple damages; deleting the provision for
14 either party who prevails to receive an award
15 of reasonable attorney's fees and court costs;
16 providing for the sales representative to
17 receive such fees and costs; providing for
18 jurisdiction over out-of-state principals who
19 enter into contracts subject to the section;
20 prohibiting a waiver of any provision of the
21 section; providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Section 686.201, Florida Statutes, is
26 amended to read:
27 686.201 Sales representatives' representative
28 contracts providing for payment of involving commissions;
29 requirements; termination of agreement; civil remedies.--
30 (1) As used in this section act, the term:
31
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2000 HB 305
225-214-00
1 (a) "Commission" means compensation accruing to a
2 sales representative for payment by a principal, the rate of
3 which compensation is expressed as a percentage of the dollar
4 amount of orders or sales.
5 (b) "Principal" means a person who does not have a
6 permanent or fixed place of business in this state and who:
7 1. Manufactures, produces, imports, or distributes a
8 product for wholesale, except for fresh commodities;
9 2. Contracts orally or in writing with a sales
10 representative to solicit orders for the product; and
11 3. Compensates the sales representative, in whole or
12 in part, by commission.
13 (c) "Sales representative" means a person who
14 contracts orally or in writing with a principal to solicit
15 wholesale orders in this state and who is compensated, in
16 whole or in part, by commission, but does not include a person
17 who places orders for his or her own account for resale.
18 (d) "Termination" means the end of the services
19 performed by the sales representative for the principal by
20 discharge or resignation of the sales representative or by
21 expiration of the contract.
22 (2) When a principal contracts with a sales
23 representative to solicit wholesale orders within this state,
24 the contract may shall be oral or in writing and shall set
25 forth the method and the time by which the commission is to be
26 computed and paid. If the contract is in writing, the
27 principal shall provide the sales representative with a signed
28 copy of the contract and shall obtain a signed receipt for the
29 contract from the sales representative.
30 (3)(a) When the contract between a sales
31 representative and a principal is terminated and the contract
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2000 HB 305
225-214-00
1 was not reduced to writing, all commissions due at that time
2 shall be paid within 14 working 30 days after the date of
3 termination, and all commissions due after the date of
4 termination shall be paid within 14 working days after the due
5 date.
6 (b) If the time when the commissions are due cannot be
7 determined by the contract between the principal and the sales
8 representative, the past practices between the parties control
9 or, if there were no past practices, the custom and usage
10 prevalent in this state for the business that is the subject
11 of the relationship between the parties controls.
12 (c)(b) If In the event a principal fails to comply
13 with the commission payment terms of the contract or fails to
14 comply with the provisions of paragraph (a) or paragraph (b),
15 the sales representative has a cause of action for damages
16 equal to triple double the amount of commission found to be
17 due and. The prevailing party in any such action is entitled
18 to an award of reasonable attorney's fees and court costs.
19 (4) A principal who is not a resident of this state
20 and who enters into a contract subject to this section is
21 considered to be doing business in this state for purposes of
22 the exercise of personal jurisdiction over the principal.
23 (5) A provision of this section may not be waived by
24 an express waiver or by an attempt to make a contract subject
25 to the laws of another state. A waiver of a provision of this
26 section is void.
27 Section 2. This act shall take effect July 1, 2000.
28
29
30
31
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2000 HB 305
225-214-00
1 *****************************************
2 HOUSE SUMMARY
3
Revises the law pertaining to contracts between sales
4 representatives and principals for the solicitation of
wholesale sales contracts. Extends jurisdiction of the
5 law to include in-state and out-of-state principals who
enter such contracts with sales representatives who
6 solicit orders in this state. Provides for payment of
commissions upon termination of the contract. See bill
7 for details.
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
4