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lwpat, Attorney
Category: Business Law
Satisfied Customers: 25387
Experience:  Attorney with over 35 years of business experience.
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I am an independent distributor and I as well as many others

Resolved Question:

I am an independent distributor and I as well as many others who are independent dist. for the same company are being billed back for inventory that is claimed to have been oversold. The company has gone back a period for the past five years. Can they do this?
Submitted: 7 years ago.
Category: Business Law
Expert:  lwpat replied 7 years ago.
Please explain your situation in more detail.
Customer: replied 7 years ago.
we recieve a settlement statement each week for the product that we purchase and the sales that were made in that week. They pay us a commision on the sold inventory less inventory purchased. They are saying that we have sold more inventory than we purchased from them. They sent a printout showing dollar amounts of each week for the past 5 years of positive or negetive inventories resulting in a favorable inventory for most of us. They are now billing us back for the over inventory sold that is supposed never been paid for. If we have unsold inventory at the end of a week, the cost of the inventory is deducted from our commisions (underselling). When the product is sold in a period to follow then you would be paid for inventory exceeding your purchases (overselling). It would take hundreds of hours to reseach every week for the past 5 years. Their side is that with the reconcilliation each week should show the problem. Our side is the same. They should have been reembursed for any oversold inventory. Can they even legally go this far back and hold us accountable when it would be almost impossible to reseach?
Expert:  lwpat replied 7 years ago.
This is a crazy way to do business. Usually commissions are based on revenue actually remitted to the company. The way they are doing it makes it almost impossible to keep track. But to answer your question the statute of limitations in Florida on a written contract is five years so they can go back that far. Here all you can do is to sit down and go through the reports to see if they are correct.
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