Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 7 of chapter 104 of the General Laws, as appearing in the 1994 Official Edition, is hereby amended by striking out, in line 11, the words "an individual" and inserting in place thereof the following words:- a person.

SECTION 2. Said section 7 of said chapter 104, as so appearing, is hereby further amended by inserting after the word "orders", in line 12, the following words:- in the commonwealth.

SECTION 3. Said section 7 of said chapter 104, as so appearing, is hereby further amended by striking out, in line 18, the words "by either" and inserting in place thereof the following words:- whether by expiration of a contract,.

SECTION 4. Said chapter 104 is hereby further amended by striking out sections 8 and 9, as so appearing, and inserting in place thereof the following two sections:-

Section 8. The terms of the contract between a principal and a sales representative shall determine when a commission shall be due. If the time when such commission shall be due is not specified in a contract, the past practices between the parties shall control or, if there are no such past practices, the custom and usage prevalent in the commonwealth for the business that is the subject of the relationship between the parties shall control. All commissions that are due at the time of termination of a contract between a sales representative and principal shall be paid within fourteen days after the date of termination. Commissions that become due after the termination date shall be paid within fourteen days after the date on which the commissions became due.

Section 9. A principal who wilfully or knowingly fails to comply with provisions relating to the prompt payment of commissions set forth in section eight shall be liable to the sales representative in a civil action for the principal amount of the commissions owed and for an additional sum up to three times the amount of commissions and for reasonable attorney's fees and court costs. A principal who is not a resident of the commonwealth and who enters into a contract subject to the provisions of sections seven to nine shall be deemed to be doing business in the commonwealth for purposes of the exercise of personal jurisdiction over such principal. No provision of sections seven to nine may be waived, whether by express waiver or by an attempt to make a contract or agreement subject to the laws of another jurisdiction. A waiver of any provision of sections seven to nine shall be void.