Opinion ID: 1058614
Heading Depth: 3
Heading Rank: 2

Heading: Independent Sales Representatives

Text: Mario uses independent sales representatives in its contract sales division to promote and sell Mario's products. Each of Mario's sales representatives has an exclusive territory. Scutellaro explained that [i]n exchange [for an exclusive territory], [Mario] expect[s] their loyalty. That's the way it's done in this industry. In other words, in exchange for an exclusive territory, Mario did not permit its sales representatives to represent a competing company. Mario's sales representatives are not Mario employees. Mario does not provide its sales representatives with a salary, health insurance, or pension benefits. Instead, the sales representatives are only paid commissions. Mario's commission rate is generally 8%, but that rate may fluctuate. Mario withholds no taxes on commissions paid and issues IRS 1099 forms to its sales representatives rather than W-2 forms. Mario pays for the catalogs, swatches, and samples it gives to its sales representatives. Mario also pays most of the sales representatives' expenses for attendance at Mario business meetings. Cook began working at Mario in 1990. Cook, an at-will employee, served as the manager for Mario's contract sales division from 1995 to November 7, 2003. Banks was Mario's sales representative in Virginia, Maryland, and D.C. from January 26, 1998 until her resignation on June 1, 2004. Banks testified that she was a contract agent, an independent sales representative and was not an employee of Mario. Darnell Group (Darnell) is a sales organization formed by Joseph Darnell in 1992. Darnell was Mario's sales representative for Illinois and Michigan from 1988 through the date of its resignation on January 29, 2004.