Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Chapter 104 of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by adding the following three sections:-
Section 7. The following terms as used in sections eight and nine, unless the context otherwise requires, shall have the following meanings:
"Commission", compensation accruing to a sales representative for payment by a principal, earned through the last day on which services were performed by the sales representative, the rate of which is expressed as a percentage of the dollar amount of orders or sales.
"Principal", a person who manufactures, produces, imports or distributes a product for wholesale; contracts to solicit orders for such product, and compensates individuals who solicit wholesale orders in whole or in part, by commission.
"Sales representative", an individual other than an employee, who contracts with a principal to solicit wholesale orders and who is compensated, in whole or in part, by commission but shall not include one who places orders or purchases exclusively for his own account for resale.
"Day", any calendar day, including Saturdays, Sundays and legal holidays.
"Termination", the end of services performed by the sales representative for the principal by either discharge or resignation.
Section 8. At the written request of either party, a sales representative and a principal shall enter into a written contract for services to be performed by a sales representative. No such written contract shall be entered into prior to the termination of any existing agreement.
Any written contract entered into pursuant to this section shall contain provisions which establish: (a) the form of payment and the method by which such payment is to be computed and made, including instances where the written contract is terminated by either party under the provisions of the written contract; (b) the length of notice which either party must provide to the other for termination of the contract; and (c) 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.
Section 9. When an agreement between a principal and a sales representative is terminated by either party or has expired and the agreement is not in writing, the principal shall pay all unpaid commissions due the sales representative for orders delivered, accepted and paid for prior to such termination or expiration within seven days after the date of such termination or expiration of the agreement; provided, however, any commissions due a sales representative on an order made prior to such termination or expiration, but delivered, accepted and paid for after such termination or expiration shall become due and payable to the sales representative within fourteen days after the principal receives payment for the order; and, provided further, that either party shall provide the other with at least seven days notice before such agreement may be terminated.