House Bill 0305

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    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.

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23  Be It Enacted by the Legislature of the State of Florida:

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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:

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    Florida House of Representatives - 2000                 HB 305

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  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

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    Florida House of Representatives - 2000                 HB 305

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  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.

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    Florida House of Representatives - 2000                 HB 305

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  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.

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