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. By entering into an agreement with any company,
each Distributor is entitled to specific and undeniable rights to protect and
preserve immediate and long-term residual income.
2.
Distributors' personal business relationships shall be honored and
protected. Distributors' downlines that are personally sponsored and personal
retail customers are part of the distributor's business. Companies will
recognize the sacred nature of the sponsor/distributor relationship.
Distributors have the right to expect company’s efforts to support and sustain
that relationship, and do nothing to compete with or harm the Distributors
business. No restrictions should be placed on any legitimate business
relationship, regardless of a competing company being involved or not.
3.
Product usage by a distributor's personally sponsored downline and
customers is considered as retail sales of that distributor and is
commissionable. 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.
Distributors shall be protected from termination without just cause.
Distributors have a right to automatic renewal without material breach of
contract. Distributors have a right to a process and system of fair and
independent recourse.
5.
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.
6.
Distributors have a right to sell, transfer or will their
independent contractor business to any party that would qualify as a
distributor under normal conditions. This is a provision that also helps
protect the independent contractor status.
7.
Distributors have the right to expect that their company and
employees be honest and treat them courteously and respectfully; and submit to
likewise treat them with mutual respect.
8.
Distributors have the right to expect that their company has taken
all reasonable steps to insure that their products are properly represented and
meet any and all legal standards, have taken all reasonable steps to protect
the proprietorship of the products and they are shipped in a timely manner.
9.
Distributors should have the right to join any legitimate
association of their choice.
10.
Loyalty is expected from both Distributor and Company to each
other
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