Definitions.

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As used in this chapter:

(1) "Commissions" means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a specified amount of each order or sale.

(2) "Person" means an individual, corporation, partnership, association, estate, or trust.

(3) "Principal" means a person who:

(a) manufactures, produces, imports, or distributes a tangible product for wholesale;

(b) contracts with a sales representative to solicit orders for the product; and

(c) compensates the sales representative, in whole or in part, by commission.

(4) "Sales representative" means a person who:

(a) contracts with a principal to solicit wholesale orders;

(b) is compensated, in whole or in part, by commission;

(c) does not place orders or purchase for his own account or for resale; and

(d) does not sell or take orders for the sale of products to the ultimate consumer.

HISTORY: 1988 Act No. 489, eff May 2, 1988.


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