_______________________________________________
SUBSTITUTE
SENATE BILL 6120
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AS
AMENDED BY THE HOUSE
Passed
Legislature - 1992 Regular Session
State of Washington 52nd
Legislature 1992 Regular Session
Read first time 02/06/92.Regulating the relationship between a sales representative
and the representative's principal.
AN ACT
Relating to the relationship between a sales representative and the
representative's principal; adding new sections to chapter 49.48 RCW; and
prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. Unless
the context clearly requires otherwise, the definitions in this section apply
throughout sections 2 through 6 of this act.
(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, whether or not the person has a permanent
or fixed place of business in this state, who:
(a)
Manufactures, produces, imports, or distributes a product for sale to customers
who purchase the product for resale;
(b)
Uses a sales representative to solicit orders for the product; and
(c)
Compensates the sales representative in whole or in part by commission.
(3)
"Sales representative" means a person who solicits, on behalf of a
principal, orders for the purchase at wholesale of the principal's product, but
does not include a person who places orders for his own account for resale, or
purchases for his own account for resale, or sells or takes orders for the direct
sale of products to the ultimate consumer.
NEW
SECTION. Sec. 2. (1) A
contract between a principal and a sales representative under which the sales
representative is to solicit wholesale orders within this state must be in
writing and must set forth the method by which the sales representative's
commission is to be computed and paid. The principal shall provide the sales
representative with a copy of the contract. A provision in the contract
establishing venue for an action arising under the contract in a state other
than this state is void.
(2)
When no written contract has been entered into, any agreement between a sales
representative and a principal is deemed to incorporate the provisions of
sections 1 through 5 of this act.
(3)
During the course of the contract, a sales representative shall be paid the
earned commission and all other moneys earned or payable in accordance with the
agreed terms of the contract, but no later than thirty days after receipt of
payment by the principal for products or goods sold on behalf of the principal
by the sales representative.
Upon
termination of a contract, whether or not the agreement is in writing, all
earned commissions due to the sales representative shall be paid within thirty
days after receipt of payment by the principal for products or goods sold on
behalf of the principal by the sales representative, including earned
commissions not due when the contract is terminated.
NEW
SECTION. Sec. 3. A
principal shall pay wages and commissions at the usual place of payment unless
the sales representative requests that the wages and commissions be sent
through registered mail. If, in accordance with a request by the sales
representative, the sales representative's wages and commissions are sent
through the mail, the wages and commissions are deemed to have been paid as of
the date of their registered postmark.
NEW
SECTION. Sec. 4. A
principal who is not a resident of this state and who enters into a contract
subject to sections 1 through 5 of this act is considered to be doing business
in this state for purposes of the exercise of personal jurisdiction over the
principal.
NEW
SECTION. Sec. 5. (1)
Sections 1 through 5 of this act supplement but do not supplant any other
rights and remedies enjoyed by sales representatives.
(2) A
provision of sections 1 through 5 of this act may not be waived, whether by
express waiver or by attempt to make a contract or agreement subject to the
laws of another state. A waiver of a provision of sections 1 through 5 of this
act is void.
NEW
SECTION. Sec. 6. Sections
1 through 5 of this act are each added to chapter 49.48 RCW.
NEW
SECTION. Sec. 7. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
