I'm pretty sure there has to be something in his contract (and possibly every rep's contract) regarding this, as they are representing the brand of the company as well as their own personal brand. The company can easily take those actions into consideration and either bring it up for grounds of terminating the contract or not renewing it.
Pete was lucky in that aspect because not only did he have somewhat of a decent rapport with Storm (at least that I can tell; don't know if Dick had anything to do with it), but when the former people at Micro$oft bought the PBA, they wanted to get to know the problem child, which not only saved the PBA, but Pete's career as well..
BL.
My memory had it that Pete's worst years, behavior-wise, came with him under contract at AMF, not Storm. I remember watching him throw Bobcats, Sumos, Ninjas and Cobras all the time back then. Dick was with AMF still as well, doing a lot of promotional work for them (he came to open up a bowling alley near here when the Gold Angle was still new -- while throwing some games, he left the big four and then picked it up with a Gold Angle they'd drilled for him that day).
I think DP3 hit on it in page one ... when Randy really kept belaboring the point, the first thing that went through my head was that this was probably not just a reaction to what we were seeing live, but maybe some things that had previously happened off-camera as well.
Jess