New Hampshire Sales Representative


TITLE XXXI Trade And Commerce

CHAPTER 339-E Sales Representatives and Post-Termination Commissions


RSA 339-E:1 (2012)

339-E:1 Definitions.

In this chapter:

1. “Commission” means compensation paid a sales representative by a principal, the rate of which is expressed as a percentage of the dollar amount of orders or sales of the principal’s product.

2. “Principal” means a person who manufactures, produces, imports or distributes a product for sale to customers who purchase the product for resale; uses a sales representative to solicit orders for such product; and compensates individuals who solicit orders, in whole or in part, by commission.

3. “Sales representative” means an individual other than an employee, who contracts with a principal to solicit orders and who is compensated, in whole or in part, by commission but shall not include one who places orders or pur-chases exclusively for his own account for resale.

4. “Termination” means the end of services performed by the sales representative for the principal by discharge, resignation, or death.

339-E:2 Contract.

A sales representative and a principal shall enter into a written contract for services to be performed within this state by a sales representative. The written contract entered into pursuant to this section shall contain provisions which establish:

The form of payment and the method by which such payment is to be computed and paid;

Reasonable length of notice which either party must provide to the other for termination of the contract;

The number of calendar days, up to a maximum of 45 days, after the date of termination or notification of death when all commissions due shall be paid; and

Any other terms and conditions which the parties agree to include in such contract.

The principal shall provide the sales representative a signed copy of a written contract entered into pursuant to this section.

A provision in the contract establishing venue for an action arising under the contract in a state other than this state is void.

339-E:3 Damages.

The party who fails to comply with a provision of a contract entered into under RSA 339-E:2 relating to payment of a commission is liable in a civil action for damages, plus reasonable attorney’s fees and costs. The court may award exemplary damages of up to 3 times the commission owed in an action brought under this chapter.

339-E:4 Jurisdiction.

A principal who is not a resident of this state who enters into a contract with a sales representative subject to this chapter shall be considered to be doing business in this state for purposes of the exercise of personal jurisdiction over the principal.

339-E:5 Other Remedies; Combination of Claims.

Nothing in this chapter shall invalidate or restrict any other or additional right or remedy available to a sales representative, or preclude a sales representative from seeking to recover in one action on all claims against a principal.

339-E:6 No Waivers by Contract.

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, shall be void.

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