Beware of the Definition of “Order” in Your Sales Representation Agreement
By Randall J. GillaryI represented sales representatives in two lawsuits recently where the definition of “Order” was a key issue.
Both cases involved the sale of automotive production parts but the principles in this article can be applied to any sales representation agreement that involves the sale of any kind of production parts pursuant to a blanket order with issuance of periodic releases. Both cases were litigated in Federal Court in Detroit.
The Problem
The sales representation agreement in the first of the two cases had a “Definitions” section which included the following definition: “‘Orders’ shall mean a firm, contractual commitment by and … Read the rest