Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 15

Nodak Mutual Insurance Co. (Nodak) terminated Barry Myaer's contract as an insurance agent. The most recent contract Myaer had signed provided a 10 percent commission on gross premiums for sales of insurance, with a 1 percent bonus if notes for insurance were paid by a set date However, the contract allowed Nodak to "modify … any bonuses that might apply." A subsequent contract, sent by e-mail, provided for a reduction of 1 percent in commissions if all submissions and loss reports were not submitted online, and another 1 percent it all notes for insurance were not paid and received by the home office by a specified date. When Nodak failed to pay Myaer deferred commissions on the policies he had sold, Myaer sued. He stated in an affidavit that if he did his reports via the Internet and all notes were paid, his total commission would be 12 percent. Nodak argued Myaer's claim to a 12 percent commission was barred by the parol evidence rule. Was it?