CHAPTER 7. CONTRACTS WITH WHOLESALE SALES REPRESENTATIVES
IC 24-4-7
Chapter 7. Contracts With Wholesale Sales Representatives
IC 24-4-7-1
"Commission"
Sec. 1. As used in this chapter, "commission" meanscompensation that accrues to a sales representative, for payment bya principal, at a rate expressed as a percentage of the dollar amountof 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, unincorporatedassociation, 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 aproduct for wholesale;
(2) contracts with a sales representative to solicit wholesaleorders for the product; and
(3) compensates the sales representative, in whole or in part, bycommission.
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 aperson who:
(1) contracts with a principal to solicit wholesale orders inIndiana; and
(2) is compensated, in whole or in part, by commission.
The term does not include a person who places orders or purchaseson the person's own account for resale.
As added by P.L.238-1985, SEC.1.
IC 24-4-7-5
Termination of contract; payment of commissions accrued; failureto comply; attorney's fees and costs
Sec. 5. (a) If a contract between a sales representative and aprincipal is terminated, the principal shall, within fourteen (14) daysafter payment would have been due under the contract if the contracthad not been terminated, pay to the sales representative allcommissions 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 salesrepresentative, for exemplary damages in an amount no more thanthree (3) times the sum of the commissions owed to the salesrepresentative.
(c) In a civil action under subsection (b), a principal against whomexemplary damages are awarded shall pay the sales representative'sreasonable attorney's fees and court costs. However, if judgment isentered for the principal and the court determines that the action wasbrought on frivolous grounds, the court shall award reasonableattorney'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 whocontracts with a sales representative to solicit wholesale orders fora 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 commissionto a sales representative who is not an employee of the principal, thesales representative is entitled to the commission agreed upon if:
(1) the principal revokes the offer of commission and the salesrepresentative establishes that the revocation was for a purposeof avoiding payment of the commission;
(2) the revocation occurs after the sales representative hasobtained a written order for the principal's product because ofthe efforts of the sales representative; and
(3) the principal's product that is the subject of the order isshipped 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
Waiver of provision in chapter
Sec. 8. A provision in a contract between a sales representativeand 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.