Legal Aspects of Salesperson Commission Payments Implications for the Implementation of Commission Sales Programs

Leslie M. FineLeslie Fine received her Ph.D. in Marketing from the University of Tennessee. She is an assistant professor at the Fisher College of Business at The Ohio State University and has 5 years experience as a salesperson and sales manager. Dr. Fine has previously published in the Journal of Personal Selling and Sales Management, Journal of Consumer Psychology and various conference proceedings. Her research interests are in the development of effective buyer-seller relationships and sales force management.

Janice R. FrankeJanice R. Franke received her Juris Doctor at the Ohio State University and her undergraduate degree at Smith College. She is currently an assistant professor of business law at the Fisher College of Business at the Ohio State University. Professor Franke has published in the American Business Law Journal and several other law journals. Her major research focuses on issues of employment law and affirmative action, and her teaching experience is in legal environment and institutional management.

Abstract

Commission compensation plans often lead to disagreements between salespeople and sales managers, particularly when salespeople are terminated or leave the job. This paper explores the legal aspects of the relationship between the salesperson and the selling firm with regard to the payment of commissions. In addition, the aspects of agency law, contract law and state statutory law which impact the payment of sales commissions are reviewed. The paper concludes with managerial implications and research suggestions.

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Legal Aspects of Salesperson Commission Payments Implications for the Implementation of Commission Sales Programs

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Legal Aspects of Salesperson Commission Payments Implications for the Implementation of Commission Sales Programs

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