A written rep contract is circulated, unsigned and quickly forgotten. Meanwhile, the parties perform for about eight years. When a dispute then arises, does the contract control?
Most terminations are telegraphed. Reps must pay attention to the warning signs. Consider Roger Rep’s plight:
Some manufacturers will initially consider a sales rep’s commission claim with sympathy, others with reasonableness, and perhaps most with nervous skepticism. Then there is The McGraw Hill Companies, Inc. (now known as McGraw Hill Financial, Inc.), a leading publisher of elementary school textbooks.
After signing a new contract with a principal, most reps will properly focus on generating sales within the newly assigned territory. Even in this era of corporations getting gobbled up or “restructured” on a regular basis, little thought is given to what happens if the principal gets bought out. Yet several important questions are usually presented.
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