Does the Act Override the Terms of the Sales Rep Agreement Itself?
Yes. The Act’s statutory provision limiting the right of a principal to terminate a sales representative overrides any contrary provision in the sales representative agreement. Thus, a sales representative may have a valid claim for unlawful termination under the Act even where the agreement itself would otherwise allow termination under its own terms. The Act provides a trap for the unwary principal, manufacturer, wholesaler, or importer that engages a Minnesota sales rep without being familiar with the Act. Even if the principal terminates the sales rep in accordance with the negotiated terms of the sales rep agreement, liability could arise.
