Transactional attorneys spend almost all of their time working on business combinations and finance transactions. But they also need to understand the supply chain because supply chain transactions often form the foundation of the businesses they represent or negotiate against. Supply chain transactions include distribution and reseller agreements, manufacturing agreements, equipment leases, requirements and output contracts, franchise agreements, letter of credit transactions, transportation and storage agreementsbasically any transaction involving the sale, lease, transportation or storage of goods.
This column discusses the basics of the compensation issues impacting “outside” sales representative agreements.1 Transactional attorneys should keep these issues in mind not only when they draft, negotiate or benchmark these agreements, but also when they review them during due diligence.
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