Court Expands Definition of Sales Representatives
Michigan’s economy is largely fueled by manufacturing. As a consequence, many sales representatives call Michigan home. A majority of these sales reps are paid in whole or part on a percentage of sales made by the manufacturer. In a recent case, the Michigan Court of Appeals looked at a truck dealership that had hired a salesman to establish a truck rental and leasing business. The salesman was paid on a salary plus commission basis. Commissions were 1% of truck rentals. The salesman was not involved with sales of trucks and his commissions did not involve truck sales. At issue in the case was whether Michigan Sales Representative Commissions Act (“SRCA”), which gives sales representatives a shot at triple damages up to $100,000 and attorney fees, applied to leasing transactions. The Court of Appeals acknowledged that the terms “order” and “goods” are not defined in the SRCA. The Court determined that the SRCA does not require a transfer of title. Because truck leases involve “orders for goods” the Court determined that the salesman was protected by the SRCA.
If you wish to read the case, it is Radina v Wieland Sales, Inc., Michigan Court of Appeals, Docket No. 301090 decided July 17, 2012 and can be viewed at: http://coa.courts.mi.gov/documents/OPINIONS/FINAL/COA/20120717_C301090_31_301090.OPN.PDF
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