9.1 — Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, or any illegal, fraudulent, deceptive or unethical business conduct by a Representative may result, at ITV’S discretion, in one or more of the following corrective measures:
Issuance of a written warning or admonition;
Requiring the Representative to take immediate corrective measures;
Imposition of a fine, which may be withheld from bonus and commission checks;
Loss of rights to one or more bonus and commission checks;
ITV may withhold from a Representative all or part of the Representative’s bonuses and commissions during the period that ITV is investigating any conduct allegedly violative of the Agreement. If a Representative’s business is cancelled for disciplinary reasons, the Representative will not be entitled to recover any commissions withheld during the investigation period;
Suspension of the individual’s Representative Agreement for one or more pay periods;
Involuntary termination of the offender’s Representative Agreement;
Any other measure expressly allowed within any provision of the Agreement or which ITV deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Representative’s policy violation or contractual breach;
In situations deemed appropriate by ITV, the Company may institute legal proceedings for monetary and/or equitable relief.
9.2 — Grievances and Complaints
When a Representative has a grievance or complaint with another Representative regarding any practice or conduct in relationship to their respective ITV businesses, the complaining Representative should first report the problem to his or her Sponsor who should review the matter and try to resolve it with the other party's upline sponsor. If the matter cannot be resolved, it must be reported in writing to the Representative Services Department at the Company. The Representative Services Department will review the facts and attempt to resolve it. If it is not resolved, it will be referred to the Dispute Resolution Board for final review and determination.
9.3 — Dispute Resolution Board
The purpose of the Dispute Resolution Board is to: (1) review appeals of disciplinary sanctions; and (2) review matters between ITV Representatives. After the response or settlement instituted by Representative Services has been denied or otherwise remains unresolved, the Dispute Resolution Board reviews evidence, deliberates, and responds to current outstanding issues on a collective basis.
A Representative may submit a written request for a telephonic or in-person hearing within seven business days from the date of: (1) the written notice by ITV of disciplinary action; or (2) the written decision of Representative Services regarding disputes between Representatives. All communication with ITV and the Representative seeking resolution of a dispute must be in writing. It is within the DRB’s discretion whether a claim is accepted for review. If the DRB agrees to review the matter, it shall schedule a hearing within thirty (30) days of the receipt of the Representative’s written request. All evidence (e.g., documents, exhibits, etc.) that a Representative desires to have considered by the DRB must be submitted to ITV no later than seven business days before the date of the hearing. The Representative shall bear all of the expenses related to his or her attendance and the attendance of any witnesses he or she desires to be present at the hearing. The decision of the Dispute Resolution Board will be final and subject to no further review. During the pendency of the claim before the DRB, the Representative waives his or her right to pursue arbitration or any other remedy.
Following issuance of a sanction, the disciplined Representative may appeal the sanction to the Dispute Resolution Board (“DRB”). Representative’s appeal must be in writing and received by the Company within 15 days from the date of ITV’S cancellation notice. If the appeal is not received by ITV within the 15 day period, the sanction will be final. The Representative must submit all supporting documentation with his or her appeal correspondence. If the Representative files a timely appeal of cancellation, the DRB will review and reconsider the cancellation, consider any other appropriate action, and notify the Representative in writing of its decision.
The Representative Agreement of any Representative initiating suit against ITV or its partners, directors, officers or employees will be considered cancelled upon receipt of notice or documentation that the suit is intended.
9.4 — Arbitration
Any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. If a Representative files a claim or counterclaim against ITV, he or she may only do so on an individual basis and not with any other Representative or as part of a class or consolidated action. Representatives waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Essex County, Massachusetts, unless the laws of the state in which a Representative resides expressly require the application of its laws, in which case the arbitration shall be held in the capital of that state. The parties shall be entitled to all discovery rights allowed under the Federal Rules of Civil Procedure. No other aspects of the Federal Rules of Civil Procedure shall be applicable to an arbitration. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel, which the American Arbitration Panel provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitrate shall survive any termination or expiration of the Agreement.
Nothing in these Policies and Procedures shall prevent ITV from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect ITV’S interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
9.5 — Governing Law, Jurisdiction and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside in Essex County, Commonwealth of Massachusetts unless the laws of the state in which a Representative resides expressly require the application of its laws, in which case that state’s law shall govern all issues related to jurisdiction and venue. The laws of the Commonwealth of Massachusetts shall govern all other matters relating to or arising from the Agreement unless the laws of the state in which a Representative resides expressly require the application of its laws.
Friday, June 15, 2007
DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
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