California Civil Code

Sec. § 1738.13


Whenever a manufacturer, jobber, or distributor is engaged in business within this state and uses the services of a wholesale sales representative, who is not an employee of the manufacturer, jobber, or distributor, to solicit wholesale orders at least partially within this state, and the contemplated method of payment involves commissions, the manufacturer, jobber, or distributor shall enter into a written contract with the sales representative.


The written contract shall include all of the following:


The rate and method by which the commission is computed.


The time when commissions will be paid.


The territory assigned to the sales representative.


All exceptions to the assigned territory and customers therein.


What chargebacks will be made against the commissions, if any.


The sales representative and the manufacturer, jobber, or distributor shall each be provided with a signed copy of the written contract and the sales representative shall sign a receipt acknowledging receipt of the signed contract.


The sales representative shall be provided with the following written information and documentation with payment of the commission:


An accounting of the orders for which payment is made, including the customer’s name and invoice number.


The rate of commission on each order.


Information relating to any chargebacks included in the accounting.


No contract shall contain any provision which waives any rights established pursuant to this chapter. Any such waiver is deemed contrary to public policy and void.

Last accessed
Jun. 6, 2016