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Manufacturing Representative Agreement

Manufacturing Representative Agreement Template for United States

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Key Requirements PROMPT example:

Manufacturing Representative Agreement

"I need a Manufacturing Representative Agreement for my medical device company to appoint an exclusive sales representative in California and Nevada, with a 10% commission structure and quarterly sales targets starting March 2025."

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Document background
The Manufacturing Representative Agreement serves as the foundation for a business relationship between manufacturers and their independent sales representatives. This document is essential when a manufacturer wants to expand their sales reach without hiring direct employees. The agreement, governed by U.S. federal and state laws, clearly defines the scope of authority, territory rights, commission structures, and performance expectations. It includes specific provisions to ensure compliance with state sales representative acts and maintains proper independent contractor classification while protecting both parties' interests in the sales relationship.
Suggested Sections

1. Parties: Identification of the manufacturer and the representative, including full legal names and addresses

2. Background: Context of the agreement and brief description of both parties' businesses

3. Definitions: Key terms used throughout the agreement including Products, Territory, Customers, etc.

4. Appointment and Territory: Scope of representative's authority and defined geographic territory

5. Representatives' Duties and Obligations: Detailed responsibilities and performance expectations

6. Compensation: Commission structure, payment terms, and calculation methods

7. Term and Termination: Duration of agreement and conditions for termination

8. Confidentiality: Protection of proprietary information and trade secrets

9. Independent Contractor Status: Clear statement of relationship between parties

Optional Sections

1. Non-Compete: Restrictions on representing competing products during and after the agreement term

2. Training Requirements: Specific training obligations and requirements for representatives

3. Marketing Support: Details of marketing materials and support provided by manufacturer

4. Performance Metrics: Specific sales targets and evaluation criteria for representative performance

5. International Trade Compliance: Export control and international trade requirements for cross-border sales

Suggested Schedules

1. Product Schedule: Detailed list of products covered by the agreement

2. Commission Schedule: Detailed breakdown of commission rates and special terms

3. Territory Map: Visual representation of assigned territory

4. Sales Targets: Specific performance metrics and goals

5. Required Reports: Templates and examples of required reporting documents

6. Training Materials: Product information and training documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Clauses




































Industries

Federal Antitrust Laws: Sherman Antitrust Act and Clayton Act governing competition and pricing, along with Federal Trade Commission Act regarding unfair trade practices and Robinson-Patman Act concerning price discrimination

State Sales Representative Acts: State-specific laws that protect sales representatives' rights, particularly regarding commissions and termination

Employment Classification Laws: Fair Labor Standards Act and IRS guidelines on independent contractor classification, including state-specific employment classification regulations

Intellectual Property Protection: Federal and state laws governing trademarks, patents, trade secrets, and copyrights that need to be addressed in the agreement

Uniform Commercial Code: Standard set of business laws governing commercial transactions, including state-specific commercial codes

Sales Commission Regulations: State and federal regulations governing commission payments, timing, and post-termination obligations

International Trade Compliance: Export control regulations, international trade agreements, and Foreign Corrupt Practices Act if international business is involved

State Contract Laws: General contract formation and enforcement principles specific to each state where the agreement will be operative

State Franchise Laws: Regulations to ensure the representative agreement doesn't inadvertently create a franchise relationship

Agency Law Principles: Federal and state laws governing principal-agent relationships and associated obligations and liabilities

Interstate Commerce Regulations: Federal rules governing business conducted across state lines and associated reporting requirements

State Unfair Trade Practices Acts: State-specific regulations preventing unfair competition and deceptive business practices

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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