act-1998-0-173•Pennsylvania Act 1998-173 — COMMERCE AND TRADE - AMEND
Pennsylvania Act 1998-173 — COMMERCE AND TRADE - AMEND
act-1998-0-1731998 Pa. Act 173Law
Act text
COMMERCE AND TRADE - AMEND
Act of Dec. 21, 1998, P.L. 1305, No. 173 Cl. 12
Session of 1998
No. 1998-173
HB 2703
AN ACT
Amending the act of December 21, 1988 (P.L.1881, No.184),
entitled "An act providing for agreements between sales
representatives and their principals," further defining
"principal"; and further providing for commissions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "principal" in section 1 of the
act of December 21, 1988 (P.L.1881, No.184), entitled "An act
providing for agreements between sales representatives and their
principals," is amended to read:
Section 1. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Principal." Any person who [does not have a permanent or
fixed place of business in this Commonwealth and who] does all
of the following:
(1) Engages in the business of manufacturing, producing,
importing or distributing a product for sale to customers who
purchase such products for resale.
(2) Utilizes sales representatives to solicit orders for
such product.
(3) Compensates sales representatives, in whole or in
part, by commission.
* * *
Section 2. Sections 3 and 4 of the act are amended to read:
Section 3. Termination.
[If a contract between a sales representative and a principal
is terminated, the principal shall, within 14 days after payment
would have been due under the contract if the contract had not
been terminated, pay to the sales representative all commissions
accrued under the contract.] A principal shall pay a sales
representative all commission due at the time of termination
within 14 days after termination.
Section 4. Commissions on goods delivered after the end of the
agreement.
[Within 14 days after payment would have been due under the
contract if the contract had not been terminated, a sales
representative shall also receive commissions on goods ordered
prior to termination, but shipped thereafter.] A principal shall
pay a sales representative all commissions that become due after
termination within 14 days of the date such commissions become
due.
Section 3. The act is amended by adding a section to read:
Section 5.1. When commissions become due.
(a) Contract.--The terms of the contract, whether or not in
writing, between the principal and sales representative shall
determine when commissions become due.
(b) Custom and usage.--If the time when commissions become
due cannot be determined by a contract between the principal and
sales representative, the past practices of the parties shall
control, or, if there are no past practices, the custom and
usage prevalent in this Commonwealth for the business that is
the subject of the relationship between the parties shall
control.
Section 4. This act shall take effect January 1, 1999.
APPROVED--The 21st day of December, A. D. 1998.
THOMAS J. RIDGE
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