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Contracts Between Out-of-State Principals and Commissioned Sales Representatives

Miss. Code Ann. tit. 75, ch. 87
in effect

Miss. Code Ann. § 75-87-1 Definitions.

As used in this chapter: “Commission” means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the dollar amount of certain orders or sales. “Principal” means any person who does not have a permanent or fixed place of business in this state and who: Engages in the business of manufacturing, producing, importing or distributing a product or products for sale to customers who purchase such product or products for resale; Utilizes sales representatives to solicit orders for such product or products; and Compensates the sales representatives, in whole or in part, by commission. “Sales representative” means any person who engages in the business of soliciting, on behalf of a principal, orders for the purchase at wholesale of the product or products of the principal. The term “sales representative” shall not include a person who places orders or purchases for such person’s own account for resale or is engaged in home solicitation sales regulated pursuant to Section 75-66-1 et seq., Mississippi Code of 1972.

Miss. Code Ann. § 75-87-3 Sales representative contract to set forth means by which commissions shall be computed and paid.

Whenever any principal enters into an oral or written contract with a sales representative for services to be rendered within this state and the contemplated method of compensation of the sales representative involves a commission, the contract shall set forth the means by which the commission shall be computed and paid.

Miss. Code Ann. § 75-87-5 Commissions due and payable within 21 days of termination of sales representative’s contract.

Whenever the contract between a sales representative and any principal is terminated, all commissions due the sales representative by the principal shall be due and payable within twenty-one (21) days of such termination.

Miss. Code Ann. § 75-87-7 Action to recover commissions; triple commissions; attorney fees.

Any principal who fails to timely pay the sales representative as provided in Section 75-87-5, shall be liable to the sales representative in a civil action for up to triple the commissions due to the sales representative, plus reasonable attorney’s fees and costs.

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