How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask wallstreetesq. Your Own Question

wallstreetesq.
wallstreetesq., Attorney
Category: Business Law
Satisfied Customers: 15255
Experience:  10 years, Corp litigation, Of Counsel to several global and nationwide corporation
Type Your Business Law Question Here...
wallstreetesq. is online now
A new question is answered every 9 seconds

Ive been talking to a number of people that want to sell products

Customer Question

I've been talking to a number of people that want to sell products and services that my window company offers. I'm not sure how to protect myself, as a business owner, from legal issues that coupld potentially arrise from them mis-representing my company. Also, I want to limit my losses from them mis-ordering product that would be unusable. I want to make them accountable for their own mistakes.
Would it make sense to enter an agreement with them as exempt independent reps? Or how about setting them up as independent brokers or sub-dealers and allowing them to use my company name? Kind of like a franchise concept.
Submitted: 4 years ago.
Category: Business Law
Expert:  wallstreetesq. replied 4 years ago.
how will they get paid?
Customer: replied 4 years ago.

A possible arrangement might be to enter an agreement having the rep set up as a Broker or Sub-dealer. The sub-dealer would have wholesale pricing from my company and would write their own contracts with customers.

A Broker would write contracts for us and slap a broker fee of, say, 20% on top of the contract as their commission which is to be paid by the customer.

 

Otherwise, I'm guessing that I would have to set them up as commission based exempt reps that got paid after we were paid on a job and it could be done on a sliding scale based on the profit or mark-up amount.

Expert:  wallstreetesq. replied 4 years ago.
I would suggest you have them as independant contractors, where you pay them on a 100% commission and they would be solely independant from your company. Also, you would pay them a 1099 and not have to pay state and federal taxes. The liability would be on them, and you could even require them to have insurance.
Customer: replied 4 years ago.

But, what I am trying to get suggestions on, is how do I protect myself from losses caused by them and their mistakes?

And how can I protect myself from any mis-representation from them? Is it ok to have them get a contract signed by the customer and have the rep sign it. And then have a clause stipulating that the contract is not binding without my signature?

Expert:  wallstreetesq. replied 4 years ago.
As independant contractors they would be liable, you would have a separate contract, to the client signed by them for your company, and another for the contractor, indemnifying you of any liability caused by them. It would be in your contract stated to the client, that you are not liable for the contractors mistake, and in the contractors contract.
Customer: replied 4 years ago.

So, maybe we can wrap this up. Would I be able to provide them with business cards with their name? If so, would the card need to have them titled as independent Sales Associate (or Rep)? Would that be the clarification to the customer so that they understand that the rep is an independant?

 

Thanks

Expert:  wallstreetesq. replied 4 years ago.
to be sure they will be treated as contractors, you can have their name printed on a card but I would not put your company name on the card or phone number,, possibly underneat state independant salesman of various window products.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA