Latex foam sales rep Kevin Callinan, a fixture in the mattress industry, was starting to contemplate retirement. Shevick Sales Corp. (SSC), owned by industry acquaintance Karl Shevick, sold latex mattress toppers.
Many otherwise sound rep contracts are subject to termination for any reason or for no reason. Even if the parties agree to an initial contract term of three or more years to give the relationship time to develop and to enable the rep to create demand for the manufacturer’s products, most reps understand that if their three-year agreement allows termination on 30 days’ notice, they don’t really have a three-year contract. Instead, they’re working on a 30-day contract.
Each of these dispute resolution avenues includes certain advantages and disadvantages of which you need to be aware.