State Codes and Statutes
Statutes > Texas > Business-and-commerce-code > Title-4-business-opportunities-and-agreements > Chapter-54-compensation-agreements-for-sales-representatives
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.
State Codes and Statutes
Statutes > Texas > Business-and-commerce-code > Title-4-business-opportunities-and-agreements > Chapter-54-compensation-agreements-for-sales-representatives
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.
State Codes and Statutes
Statutes >
Texas >
Business-and-commerce-code >
Title-4-business-opportunities-and-agreements >
Chapter-54-compensation-agreements-for-sales-representatives 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.
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