South Carolina General Assembly
107th Session, 1987-1988

Bill 2943

                    Current Status

Bill Number:               2943
Ratification Number:       546
Act Number                 489
Introducing Body:          House
Subject:                   Payment of post-termination claims to
                           sales representatives
View additional legislative information at the LPITS web site.

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A489, R546, H2943)

AN ACT TO AMEND TITLE 39, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TRADE AND COMMERCE, BY ADDING CHAPTER 65 SO AS TO REQUIRE AN OUT-OF-STATE PRINCIPAL TO PAY COMMISSIONS OWED TO A SALES REPRESENTATIVE WITHIN A CERTAIN PERIOD AFTER A CONTRACT BETWEEN THEM IS TERMINATED, PROVIDE FOR CERTAIN PUNITIVE DAMAGES AND ATTORNEY'S FEES IF POST-TERMINATION COMMISSIONS ARE NOT PAID IN A TIMELY MANNER, PROVIDE FOR ATTORNEY'S FEES TO BE AWARDED AGAINST PERSONS BRINGING FRIVOLOUS ACTIONS, PROVIDE FOR PERSONAL JURISDICTION OVER CERTAIN NONRESIDENT PRINCIPALS, AND PROVIDE THAT ANY AGREEMENTS WHICH WAIVE ANY OF THE REQUIREMENTS OF THIS CHAPTER ARE VOID.

Be it enacted by the General Assembly of the State of South Carolina:

Payment of post-termination claims to sales representatives

SECTION 1. Title 39 of the 1976 Code is amended by adding:

"CHAPTER 65

Payment of Post-termination Claims to Sales

Representatives

Section 39-65-10. As used in this chapter:

(1) 'Commissions' means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a specified amount of each order or sale.

(2) 'Person' means an individual, corporation, partnership, association, estate, or trust.

(3) 'Principal' means a person who:

(a) manufactures, produces, imports, or distributes a tangible product for wholesale;

(b) contracts with a sales representative to solicit orders for the product; and

(c) compensates the sales representative, in whole or in part, by commission.

(4) 'Sales representative' means a person who:

(a) contracts with a principal to solicit wholesale orders;

(b) is compensated, in whole or in part, by commission;

(c) does not place orders or purchase for his own account or for resale; and

(d) does not sell or take orders for the sale of products to the ultimate consumer.

Section 39-65-20. When a contract between a sales representative and a principal is terminated for any reason, the principal shall pay the sales representative all commissions that have or will accrue under the contract to the sales representative according to the terms of the contract.

Section 39-65-30. A principal who fails to comply with the provisions of Section 39-65-20 is liable to the sales representative in a civil action for:

(1) all amounts due the sales representative plus punitive damages in an amount not to exceed three times the amount of commissions due the sales representative; and

(2) attorney's fees actually and reasonably incurred by the sales representative in the action and court costs.

Section 39-65-40. Where the court determines that an action brought by a sales representative against a principal under this chapter is frivolous, the sales representative is liable to the principal for attorney's fees actually and reasonably incurred by the principal in defending the action and court costs.

Section 39-65-50. A principal who is not a resident of this State who contracts with a sales representative to solicit orders in this State is deemed to be doing business in this State for purposes of the exercise of personal jurisdiction over nonresidents under Part 8, Chapter 2, Title 36.

Section 39-65-60. Nothing in this chapter invalidates or restricts any other right or remedy available to a sales representative or precludes a sales representative from seeking to recover in one action on all claims against a principal.

Section 39-65-70. A provision in any contract between a sales representative and a principal purporting to waive any provision of this chapter, whether by expressed waiver or by a contract subject to the laws of another state, is void.

Section 39-65-80. Any person bringing an action under the provisions of this chapter may not bring an action under the provisions of Section 41-10-10."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.