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A bill to be entitled |
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An act relating to sales representative contracts |
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involving commissions; amending s. 686.201, F.S.; revising |
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definitions; providing for application to certain persons |
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as well as businesses; including services as well as |
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products; providing for application to retail as well as |
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wholesale transactions; increasing damages under certain |
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actions for compliance; providing an effective date. |
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Be It Enacted by the Legislature of the State of Florida: |
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Section 1. Section 686.201, Florida Statutes, is amended |
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to read: |
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686.201 Sales representative contracts involving |
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commissions; requirements; termination of agreement; civil |
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remedies.-- |
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(1) As used in this act, the term: |
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(a) "Commission" means compensation accruing to a sales |
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representative for payment by a principal, the rate of which |
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compensation is expressed as a percentage of the dollar amount |
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of orders or sales. |
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(b) "Principal" means a person or business which who does |
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not have a permanent or fixed place of business in this state |
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and who: |
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1. Manufactures, produces, imports, or distributes a |
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product or service for wholesale, except for fresh commodities.; |
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2. Contracts with a sales representative to solicit orders |
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for the product or service.; and |
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3. Compensates the sales representative, in whole or in |
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part, by commission. |
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(c) "Sales representative" means a person or business |
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which who contracts with a principal to solicit wholesaleorders |
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and who is compensated, in whole or in part, by commission, but |
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does not include a person or business which whoplaces orders |
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for his or her own account for resale. |
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(2) When a principal contracts with a sales representative |
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to solicit wholesaleorders within this state, the contract |
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shall be in writing and shall set forth the method by which the |
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commission is to be computed and paid. The principal shall |
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provide the sales representative with a signed copy of the |
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contract and shall obtain a signed receipt for the contract from |
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the sales representative. |
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(3)(a) When the contract between a sales representative |
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and a principal is terminated and the contract was not reduced |
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to writing, all commissions due shall be paid within 30 days |
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after oftermination. |
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(b) In the event a principal fails to comply with the |
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provisions of paragraph (a), the sales representative has a |
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cause of action for damages equal to triple doublethe amount of |
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commission found to be due. The prevailing party in any such |
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action is entitled to an award of reasonable attorney's fees and |
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court costs. |
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Section 2. This act shall take effect upon becoming a law. |