CHAPTER 54. COMPENSATION AGREEMENTS FOR SALES REPRESENTATIVES - Texas Statutes

BUSINESS AND COMMERCE CODE

TITLE 4. BUSINESS OPPORTUNITIES AND AGREEMENTS

CHAPTER 54. COMPENSATION AGREEMENTS FOR SALES REPRESENTATIVES

Sec. 54.001. DEFINITIONS. In this chapter:

(1) "Commission" means compensation paid a sales representative

by a principal in an amount based on a percentage of the dollar

amount of certain orders for or sales of the principal's product.

(2) "Principal" means a person who:

(A) manufactures, produces, imports, or distributes a product

for sale;

(B) uses a sales representative to solicit orders for the

product; and

(C) compensates the sales representative wholly or partly by

commission.

(3) "Sales representative" means an independent contractor who

solicits, on behalf of a principal, orders for the purchase at

wholesale of the principal's product.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 54.002. CONTRACT. (a) A contract between a principal and

a sales representative under which the sales representative is to

solicit wholesale orders within this state must:

(1) be in writing or in a computer-based medium; and

(2) state the method by which the sales representative's

commission is to be computed and paid.

(b) The principal shall provide the sales representative with a

copy of the contract.

(c) A provision in the contract establishing venue for an action

arising under the contract in a state other than this state is

void.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 54.003. PAYMENT ON TERMINATION OF CERTAIN COMPENSATION

AGREEMENTS. If a compensation agreement between a sales

representative and a principal that does not comply with Section

54.002 is terminated, the principal shall pay all commissions due

the sales representative not later than the 30th working day

after the date of the termination.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 54.004. DAMAGES. A principal who fails to comply with a

provision of a contract under Section 54.002 relating to payment

of a commission or who fails to pay a commission as required by

Section 54.003 is liable to the sales representative in a civil

action for:

(1) three times the unpaid commission due the sales

representative; and

(2) reasonable attorney's fees and costs.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 54.005. PERSONAL JURISDICTION. A principal who is not a

resident of this state and who enters into a contract subject to

this chapter is considered to be transacting business in this

state for purposes of the exercise of personal jurisdiction over

the principal.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 54.006. WAIVER. A provision of this chapter may not be

waived, whether by an express waiver or by an attempt to make a

contract or agreement subject to the laws of another state. A

waiver of a provision of this chapter is void.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.