HF 3789

as introduced - 86th Legislature (2009 - 2010) Posted on 04/19/2010 11:22am

A bill for an act
relating to trade practices; amending termination of sales representatives;
amending Minnesota Statutes 2008, section 325E.37, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 325E.37, subdivision 6, is amended to read:

Subd. 6.

Scope; limitations.

(a) This section applies to a sales representative who,
during some part of the period of the sales representative agreement:

(1) is a resident of Minnesota or maintains that person's principal place of business
in Minnesota; or

(2) whose geographical territory specified in the sales representative agreement
includes part or all of Minnesota.

(b) To be effective, any demand for arbitration under subdivision 5 must be made
in writing and delivered to the principal on or before one year after the effective date of
the termination of the agreement.

(c) A provision in any contract between a sales representative dealing in plumbing
equipment or supplies and a principal purporting to waive any provision of Laws 2007,
chapters 135 or 140, whether by express waiver or by a provision stipulating that the
contract is subject to the laws of another state, shall be void.

new text begin (d) No contract between a sales representative and principal may limit the right of
the sales representative to initiate litigation or alternative dispute resolution in this state.
new text end

new text begin (e) A principal who establishes a business relationship with a sales representative
to solicit orders for products or services in this state is doing business in this state for
the purposes of this subdivision.
new text end

new text begin (f) The provisions of this section may not be waived, whether by express waiver or
by any provision in a contract attempting to make the contract or agreement subject to the
laws of another state. A waiver of any provision of this section is void.
new text end

new text begin (g) This section does not invalidate or restrict any other right or remedy available
to a sales representative, or preclude a sales representative from seeking to recover in
an action on all claims against a principal.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end