Definitions

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As used in this subchapter, unless the context otherwise requires:

  1. (1) “Commission” means compensation paid a sales representative by a principal in an amount based on a percentage of the dollar amount of certain orders for, or sales of, the principal's product;

  2. (2) “Principal” means a person who:

    1. (A) Does not have a permanent or fixed place of business in this state;

    2. (B) Manufactures, produces, imports, or distributes a product for sale to customers who purchase the product for resale;

    3. (C) Uses a sales representative to solicit orders for the product; and

    4. (D) Compensates the sales representative in whole or in part by commission; and

  3. (3) “Sales representative” means a person who solicits on behalf of a principal orders for the purchase at wholesale of the principal's product. The term “sales representative” does not include a person who places orders for or purchases the product for his or her own account for resale, or is engaged in door-to-door sales regulated by § 4-89-101 et seq.


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