Sec. 42-482. Termination of contract between sales representative and principal. Payment of commissions due. Failure to pay. Civil action.
Sec. 42-482. Termination of contract between sales representative and principal. Payment of commissions due. Failure to pay. Civil action. (a) In the event a
contract between a principal and a sales representative is terminated, the principal shall
pay to the sales representative all commissions (1) that are due on or before the effective
date of such termination, by the date specified in the contract or thirty days after the
effective date of termination, whichever is later, and (2) that are due after the effective
day of such termination, by the date specified in the contract but not later that thirty
days after such commission becomes due under the terms of such contract.
(b) Any principal who wilfully, wantonly, recklessly or in bad faith fails to pay any
commissions due in accordance with the provisions of subsection (a) of this section
shall be liable in a civil action brought by a sales representative for twice the full amount
of the commission owed to such sales representative.
(c) The failure of a principal to respond to the written demand by a sales representative for commissions owed to the sales representative not later than thirty days after
such principal receives such written demand shall create a rebuttable presumption that
such principal acted wilfully and in bad faith provided such written demand is sent to
such principal by certified mail.
(d) The prevailing party in any action brought pursuant to subsection (b) of this
section shall be entitled to reasonable attorney's fees and court costs.
(e) Any principal who establishes a business relationship with a sales representative
to solicit orders for products or services in this state shall be deemed to be doing business
in this state for purposes of establishing jurisdiction over such principal in an action
brought pursuant to subsection (b) of this section.
(P.A. 05-166, S. 2.)
History: P.A. 05-166 effective July 1, 2005.