When a contract between a sales representative and a principal is terminated for any reason other than malfeasance on the part of the sales representative, the principal shall pay the sales representative all commissions due under the contract within 30 days after the effective date of the termination and all commissions that become due after the effective date of termination within 15 days after they become due. If the principal does not make payment as required by this section, the sales representative shall make a written demand upon the principal, sent by certified mail, for the commissions then due. The principal shall respond in writing to the demand within 15 days after the principal receives the written demand.
N.C. Gen. Stat. § 66-191
Payment of commissions; termination
Applied in 1 court decision — leading case 81 F. Supp. 2d 633 - GAVCO, INC. v. Chem-Trend Inc. (1999)
Most recently applied in 81 F. Supp. 2d 633 - GAVCO, INC. v. Chem-Trend Inc. (May 1999)
1989, c. 506, s. 1; 2003-331, s. 1.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.