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Direct Sales Agreement Template for United States

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Key Requirements PROMPT example:

Direct Sales Agreement

"I need a Direct Sales Agreement for my nutritional supplements company that authorizes independent sellers to market our products in the western United States, with specific commission structures and minimum monthly sales targets to begin from March 2025."

Document background
The Direct Sales Agreement serves as the foundational document for companies engaging in direct-to-consumer sales operations within the United States. This contract type is essential when establishing a direct sales channel, whether through individual sales representatives, multi-level marketing, or direct selling organizations. The agreement encompasses crucial elements such as territory definitions, compensation structures, compliance requirements, and operational guidelines while ensuring adherence to federal and state regulations, including FTC guidelines and state-specific direct selling laws.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including legal names and addresses

2. Background/Recitals: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Territory: Establishes the seller's rights and designated sales territory

5. Products and Pricing: Details the products covered and pricing structure

6. Order and Delivery Terms: Specifies ordering process and delivery requirements

7. Payment Terms: Details payment conditions, methods, and timing

8. Term and Termination: Specifies duration and termination conditions

9. Warranties: States product warranties and limitations

10. Governing Law: Specifies applicable law and jurisdiction

Optional Sections

1. Marketing Requirements: Details marketing obligations and restrictions when specific marketing requirements exist

2. Training Requirements: Specifies required training programs when product requires specialized knowledge

3. Minimum Purchase Requirements: States minimum order quantities when volume commitments are needed

4. Non-Compete Provisions: Restricts selling competing products when exclusivity is required

5. Insurance Requirements: Specifies required insurance coverage when liability risks are significant

Suggested Schedules

1. Product Schedule: Detailed list of products and specifications

2. Price List: Comprehensive pricing information and discounts

3. Territory Map: Geographic definition of sales territory

4. Service Level Agreement: Performance metrics and requirements

5. Return Policy: Detailed product return procedures

6. Commission Structure: Detailed commission calculations and terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses

































Industries

Federal Trade Commission Act: Primary federal law prohibiting unfair or deceptive practices in commerce and regulating direct selling practices and claims

Consumer Protection Laws Bundle: Collection of federal consumer protection laws including Fair Credit Reporting Act, Truth in Lending Act, and Consumer Product Safety Act

Federal Anti-Kickback Statute: Federal law regulating compensation arrangements and preventing improper payment schemes

Antitrust Laws: Sherman Antitrust Act and Clayton Act regulating competition, pricing practices, and preventing monopolistic behavior

Magnuson-Moss Warranty Act: Federal law governing product warranties and warranty terms in consumer goods

State Direct Selling Laws: State-specific regulations covering registration requirements, licensing, and local restrictions on direct selling activities

State Consumer Protection Laws: State-level consumer protection regulations, including cooling-off periods and return policy requirements

State Contract Laws: State-specific contract formation and enforcement requirements, including statute of frauds provisions

FDA Regulations: Federal regulations governing the sale of food and dietary products, if applicable to the direct sales agreement

Healthcare Regulations: Including HIPAA compliance and medical device regulations for health-related products

Financial Services Regulations: SEC and banking regulations applicable to financial products and services

Data Privacy Laws: Including CCPA and state-specific privacy laws governing the collection and use of consumer data

Electronic Commerce Laws: UETA and E-SIGN Act governing electronic transactions and digital signatures

Employment Laws: Fair Labor Standards Act and regulations governing independent contractor relationships in direct selling

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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