Scott M. Sanders

Scott M. Sanders

About Scott M. Sanders

Scott M. Sanders has been practicing Agency Sales law and has been associated with Manufacturers' Agents National Association since 1989. Click here for more information.

Ruling In Favor Of Commissioned Sales Representative

Court of appeals upholds triple judgment award in favor of commissioned sales representative 

The Sales Rep friendly case: Reilly v. Inquest Tech., Inc., 218 Cal. App. 4th 536 (2013)

The Independent Wholesale Sales Representatives Contractual Relations Act of 1990 (“the Act”) was created to protect sales agents/representatives who receive wholesale sales commissions from manufacturers. (See California […]

By |July 3rd, 2015|Contract Law|0 Comments

Indemnification Clause in Representation Contracts

Indemnification Clauses in Representation Contracts
Many clients seek our advice on new contracts they are considering signing with their principals. Since many such contracts include an Indemnification Clause, almost as boilerplate language, our Sales Agent clients often ask: What is an Indemnity Clause, and should I sign a contract containing one?

An Indemnity Clause is a […]

By |June 12th, 2015|Contract Law|0 Comments

Contractual Sales Commissions

Contractual Sales Commissions
 

Employers and employees alike should be made aware that under California law (originally passed as AB 1396) a written contract is required to define the formula by which an employee’s sales commissions are calculated by the employer.

 
Section 2751 of the CA Labor Code states:
 
(a) Whenever an employer enters into a contract of […]

By |May 29th, 2015|Contract Law|0 Comments

Often Misunderstood Contract Terms

Many agents come to my firm with great confusion about the more “boilerplate” terms in their written contracts. There seems to be several universally misunderstood terms that just keep getting bandied about, erroneously:

VENUE, JURISDICTION, “CHOICE OF LAW” & “ADR.”

Each of these terms, often referred to as boilerplate, should be included in your contract; especially […]

By |January 26th, 2015|Misunderstood Contract Terms|0 Comments

California Sales Commission Protection Act

In 1990, the California legislature passed the “Independent Wholesale Sales Representatives Contractual Relations Act of 1990.” (CA Civil Code §1738.10 et seq.) a mouthful, but a very protective law for sales agents, in response to their widespread abuse by ruthless manufacturers. The Legislature enacted this statutory scheme based on its determination “independent wholesale sales […]

By |September 7th, 2014|Sales Commission Protection Act|0 Comments

California Sales Commission Protection Act

Congratulations to the California firms finally taking treble damage judgments for intentional violations of the California Sales Commission Protection Act; and the publication of Appellate decisions supporting such awards. This will go a long way towards giving Agents the kind of high profile that will command better contracts with longer term protection and the […]

By |August 3rd, 2014|Uncategorized|0 Comments

Protect Your Sales Commissions

Do you, as a sales agent, know your own States laws that protect your sales commissions, and whether they apply to your transactions? Most States now have statutes protecting commissions earned; but it takes a more precise analysis of whether they apply due to each laws’ unique definitions and applications. Contact a MANA referred […]

By |July 6th, 2014|Uncategorized|0 Comments

Long Term Protection for Sales Reps

Long Term Protection for Sales Reps (The Procuring Cause Doctrine)
By: Scott M. Sanders, lead counsel, The Sales Commission Enforcers

 

Having represented sales agents in contract negotiation and litigation since 1989, I have seen a wide variety of contracts.  Most often, Reps will settle for contracts completely lacking in long term commission protection.

Although the leverage to negotiate […]

By |June 8th, 2014|Longterm Contract Protection|0 Comments

Life of Part Protection

“A major manufacturer in the Metal Injection Molding industry is trying to escape its historic “Life of Part” (LOP) commission contracts with its sales agents, one territory at a time. The result is a commanding position for the agents in their negotiations with and lawsuits against the Principal. Very few agents in any industry […]

By |May 4th, 2014|Uncategorized|0 Comments

Often Misunderstood Contract Terms for Sales Reps

Often misunderstood contract terms for sales reps
By: Scott M. Sanders, lead counsel, The Sales Commission Enforcers

There seems to be several universally misunderstood, or poorly written contract terms that just keep getting regurgitated over and over, and promoting the same misunderstandings:
 VENUE, “CHOICE OF LAW” and “ADR.”
 Each of these terms really should be included in a […]

By |April 6th, 2014|Contracting With Foreign Principals|0 Comments