P.R. Laws tit. 10, § 279b

2019-02-20
§ 279b. Termination of the relationship—Just cause; exceptions; presumptions

For the purposes of this section and § 279a of this title, it shall not be deemed as just cause:

(a) The violation or noncompliance of any provision included in the sales representation contract by a sales representative, which fixes codes of behavior, sales quotas or goals, marketing or promotion that do not conform to the realities of the Puerto Rican market at the time of the violation or noncompliance by the sales representative.

The burden of the proof to evidence the fairness of the code of behavior of the fixed quota or goal shall rest on the principal or grantor.

(b) Except when proved otherwise, it shall be presumed that a principal or grantor has impaired the established relationship in any of the following cases:

(1) When the principal or grantor establishes facilities in Puerto Rico for the direct representation of merchandise or the rendering of services which the sales representatives has previously been in charge of.

(2) When the principal or grantor establishes a sales representation relationship with one or more additional representatives for the Puerto Rican area, or any part of said area, in contravention of the existing contract between the parties.

(3) When the principal or grantor unjustifiably refuses to or omits serving the orders for merchandise or services, which the sales representatives sends him in reasonable amounts and within a reasonable time.

(4) When the principal or grantor unilaterally and unreasonably varies the method of making orders and shipments, the manner, conditions or terms of payment for the merchandise or services, thus injuring the sales representative.

(5) The continuous and unjustified delay in servicing the orders of merchandise or services sent by the sales representative.

History —Dec. 5, 1990, No. 21, p. 1496, § 3.