Do you know the answer to this threshold question: are my company’s agreements with our sales representatives even legal and enforceable?
Whether you know it or not, there is most likely a state law that imposes certain requirements on the relationship between you and your sales representatives. Nearly every state has enacted a statute that governs the relationship between companies and sales representatives. These statutes primarily govern the payment of commission during the representation relationship and following termination of the relationship. If a company violates these provisions the penalty can be severe.
Sales representatives have contact with a company’s two most important assets: its customers and its technical knowledge. An up-to-date and enforceable sales representative agreement is critical to appropriately defining the company’s relationship with its sales people, maximizing protection of its critical assets, and avoiding liability. A simple review and update of agreements can provide the needed preventive measures to protect these assets and minimize risk.
Read the full alert “Sales representative agreements: Are you protected?” to learn the six fundamental questions you need to ask (and answer) when reviewing your company's agreements.