2016 Indiana Code TITLE 24. TRADE REGULATION ARTICLE 4. REGULATED BUSINESSES CHAPTER 7. CONTRACTS WITH WHOLESALE SALES REPRESENTATIVES
Download as PDF
IC 24-4-7
Chapter 7. Contracts With Wholesale Sales Representatives
IC 24-4-7-0.1
Application of certain amendments to chapter
Sec. 0.1. The addition of this chapter by P.L.238-1985 does not
apply to contracts formed before September 1, 1985.
As added by P.L.220-2011, SEC.387.
IC 24-4-7-1
"Commission"
Sec. 1. As used in this chapter, "commission" means
compensation that accrues to a sales representative, for payment by
a principal, at a rate expressed as a percentage of the dollar amount
of orders taken or sales made by the sales representative.
As added by P.L.238-1985, SEC.1.
IC 24-4-7-2
"Person"
Sec. 2. As used in this chapter, "person" means an individual,
corporation, limited liability company, partnership, unincorporated
association, estate, or trust.
As added by P.L.238-1985, SEC.1. Amended by P.L.8-1993,
SEC.355.
IC 24-4-7-3
"Principal"
Sec. 3. As used in this chapter, "principal" means a person who:
(1) manufactures, produces, imports, sells, or distributes a
product for wholesale;
(2) contracts with a sales representative to solicit wholesale
orders for the product; and
(3) compensates the sales representative, in whole or in part, by
commission.
As added by P.L.238-1985, SEC.1.
IC 24-4-7-4
"Sales representative"
Sec. 4. As used in this chapter, "sales representative" means a
person who:
(1) contracts with a principal to solicit wholesale orders in
Indiana; and
(2) is compensated, in whole or in part, by commission.
The term does not include a person who places orders or purchases
on the person's own account for resale.
As added by P.L.238-1985, SEC.1.
IC 24-4-7-5
Indiana Code 2016
Termination of contract; payment of commissions accrued; failure
to comply; attorney's fees and costs
Sec. 5. (a) If a contract between a sales representative and a
principal is terminated, the principal shall, within fourteen (14) days
after payment would have been due under the contract if the contract
had not been terminated, pay to the sales representative all
commissions accrued under the contract.
(b) A principal who in bad faith fails to comply with subsection
(a) shall be liable, in a civil action brought by the sales
representative, for exemplary damages in an amount no more than
three (3) times the sum of the commissions owed to the sales
representative.
(c) In a civil action under subsection (b), a principal against whom
exemplary damages are awarded shall pay the sales representative's
reasonable attorney's fees and court costs. However, if judgment is
entered for the principal and the court determines that the action was
brought on frivolous grounds, the court shall award reasonable
attorney's fees and court costs to the principal.
As added by P.L.238-1985, SEC.1.
IC 24-4-7-6
Doing business in Indiana
Sec. 6. For purposes of Indiana trial rule 4.4, a principal who
contracts with a sales representative to solicit wholesale orders for
a product in Indiana is doing business in Indiana.
As added by P.L.238-1985, SEC.1.
IC 24-4-7-7
Commission; revocable offer; entitlement
Sec. 7. (a) If a principal makes a revocable offer of a commission
to a sales representative who is not an employee of the principal, the
sales representative is entitled to the commission agreed upon if:
(1) the principal revokes the offer of commission and the sales
representative establishes that the revocation was for a purpose
of avoiding payment of the commission;
(2) the revocation occurs after the sales representative has
obtained a written order for the principal's product because of
the efforts of the sales representative; and
(3) the principal's product that is the subject of the order is
shipped to and paid for by a customer.
(b) This section may not be construed:
(1) to impair the application of IC 32-21-1 (statute of frauds);
(2) to abrogate any rule of agency law; or
(3) to unconstitutionally impair the obligations of contracts.
As added by P.L.138-1990, SEC.1. Amended by P.L.1-1993,
SEC.193; P.L.2-2002, SEC.76.
IC 24-4-7-8
Indiana Code 2016
Waiver of provision in chapter
Sec. 8. A provision in a contract between a sales representative
and a principal that waives a provision of this chapter by:
(1) an express waiver; or
(2) a contract subject to the laws of another state;
is void.
As added by P.L.138-1990, SEC.2.
Indiana Code 2016
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
