A DISTRIBUTOR AGREEMENT (Contract) TO STUDY
PURE EDITORIAL ON DISTRIBUTOR RIGHTS TO HELP MY READERS
RHONDA ANDERSON FOUNDER OF CREATIVE MEMORIES UNDER CONFUSING ATTACK BY Ahni & Zoe (A&Z) 0wned by CREATIVE MEMORIES OWNED BY The Antioch Cos (TAC).
OK all these names and who is running the show? Anderson one of the two founders of creative memories left Creative memories to join Heritage Makers. Naturally the alphabet soup companies (A&Z, CM & TAC) This is confusing isn’t it? Have threatened to Sue Anderson if she tries to recruit any of her friends of 27 years. (A&Z, CM & TAC) lawyer’s verbiage indicates that (Consultants/Distributors) must abide by the (A&Z, CM) CONSULTANT AGREEMENT which is in my experienced opinion HORRIBLE!
A&Z-CREATIVE MEMORIES: A SKIP THROUGH STUDY OF CONSULTANT AGREEMENT = CONTRACT !~! = OUCH !-!
PARAGRAPH 0 and PARAGRAPH 1: The Copy of the Consultant Agreement I got was in type SIZE 8 or even 7 point (terrible). There are quite a few states that say, Independent Contractor agreements must be in a minimum of 10 or 12 point type. If you bump heads with the Alphabet soup Check the point of the type on your agreement and call your state Department of Labor. SKIP TO:
PARAGRAPH 6: The Consultant Agreement is mean! As the Founder of the MLM Distributor Rights Association. We would not have accepted (A&Z, CM & TAC) as a member company because of this bad agreement. Paragraph 6. Ownership and Use of Confidential Information: Customer lists, downline lists, and profiles anything else movable? But the nutty one is, Potential Customer and Recruit leads! Do Consultants have to submit to polygraph tests: or brain washing to meet this silly requirement???? I have 3 million MLMer’s on my databases all of them are potential leads want to sort that out legal beagles!! :
Paragraph 7: Last sentence: I will not own or operate a business that is related or competing with (A&Z, CM & TAC) in a geographic location within 20 miles of of My A&Z Customers. NOTE: By this any MLM Company could be a competitor. What a pain this sounds like a line out of a franchise company! Anyhow any bumps here? Call your state Dept of Labor about Franchise law rules in your state! SKIP TO:
Paragraph 9 Termination of This Agreement: Big jump out here! It Says, " A&Z may immediately terminate this agreement without notice IN THE EVENT OF MY DEATH!" Ed. Note: This is horrible! Single mom has 3 kids works hard builds a good downline and income. She is killed in a car wreck on the 405! Her 65 year old mom on social security takes kids, doesn’t have money to properly support and feed them because company took the income her daughter built. SKIP TO:
Paragraph 11 TRANSFERABILITY : A&Z Business can’t be transferred or assigned = Can’t sell your business. Looking for link to Federal Court Cases where an MLM Distributorship is private property not the company’s SKIP TO:
Paragraph 13 A&Z Idemnification : Any mistakes! - you have to pay for! SKIP TO:
Paragraph 15 Injunctive relief: (we can sue you) A&Z Shall be entitled without proving actual damage to temporary and permanent injunctive relief (they go to court and get a court order to stop you from doing something A&Z doesn’t like). Included is that you have to pay for all the costs for lawyers and court fees! SKIP TO:
Paragraph 16 Arbitration: the move now is for a Distributor to fight Arbitration because the MLM Company is on their home territory and may have influence on the Arbitrator. This has been upheld in several courts on behalf of the Distributor. SKIP TO:
I will add my files on arbitration soon
Distributor Bill of Rights Draft
With input by Rod Cook and Mike Sheffield
1. Distributors have a right to own and operate their own independent contractor business. The company and the government should recognize that a distributorship is an independent small business with all of the rights and tax benefits of any independent small business.
2. Distributors' personal business relationships should be honored and protected. Distributors' downlines that are personally sponsored and personal retail customers are part of the distributor's business. No restrictions should be placed on any legitimate business relationship, regardless of a competing company being involved or not. A distributor has the right to expect that the company will protect his personal relationships (personally sponsored distributors and customers) from being approached by the company itself, subsidiaries of the company or any other distributor of the company or of the company's subsidiaries.
3. Product usage by a distributor's personally sponsored downline and customers is considered as retail sales of that distributor and is commissionable for that distributor and his or her upline. The use of the company's products within the sales organization is called "internal consumption." Whether a distributor or a customer receives a discount is immaterial, as in the case that factory or wholesale outlet sales are still considered as retail sales.
4. Distributors have a right to a fair and balanced contract including protection of being terminated without cause. This means that the terms of the contract should protect all parties and provide fair recourse. Distributors invest a lot of effort, time and money to build their business. Companies should not be allowed to terminate a distributorship without cause. When a company terminates a distributorship it often, through the same action, removes the distributor's financial ability to challenge that decision. The company must provide a system for a fair, independent recourse.
5. A distributor is an independent contractor and therefore has a right to use any legitimate method to build and market his or her business. This includes the right to use the company's name as long as the fact that they are an independent contractor is clearly stated.
6. There cannot be any restrictions on the distributor's spouse or family conducting any other legitimate business of their choice. The company has no right to condition their distributors' business based on any third party that is not a signature party to the independent contractor agreement/contract. Such attempts may be illegal.
7. Distributors have a right to sell or will their independent contractor business to any party that would qualify as a distributor under normal conditions. This is an important provision that also helps protect the independent contractor status.
8. Distributors have the right to expect that their company and employees will be honest and treat them courteously and respectfully.
9. Distributors have the right to expect that their company has taken all possible steps to insure that their products meet any and all legal standards, perform as promised, have taken all reasonable steps to protect the proprietorship of the products and that they are shipped on time.
10. Distributors should have the right to join any legitimate association of their choice.
Please Take A Moment To Sign Our Guest Book: