34-44-102.   Definitions.
     As used in this chapter:
     (1) "Business relationship" means an agreement that governs the relationship of principal and sales representative.
     (2) "Commission" means:
     (a) compensation:
     (i) that accrues to a sales representative;
     (ii) for payment by a principal; and
     (iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits; or
     (b) any other method of compensation agreed to between a sales representative and a principal including:
     (i) fees for services; and
     (ii) a retainer.
     (3) "Principal" means a person who:
     (a) engages in any of the following activities with regard to a product or service:
     (i) manufactures;
     (ii) produces;
     (iii) imports;
     (iv) sells; or
     (v) distributes;
     (b) establishes a business relationship with a sales representative to solicit orders for a product or a service described in Subsection (3)(a); and
     (c) agrees to compensate a sales representative, in whole or in part, by commission.
     (4) (a) Except as provided in Subsection (4)(b), "sales representative" means a person who enters into a business relationship with a principal:
     (i) to solicit orders for a product or a service described in Subsection (3)(a); and
     (ii) under which the person is compensated, in whole or in part, by commission.
     (b) "Sales representative" does not include:
     (i) an employee of a principal;
     (ii) a person licensed under Title 31A, Insurance Code;
     (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;
     (iv) a person licensed under Title 61, Chapter 2, Division of Real Estate;
     (v) a person who provides a product or service under a business relationship with a principal that is incident to the purchase or sale of real property; or
     (vi) a person who places an order or purchases a product or service for that person's own account for resale.
     (5) "Terminates" or "termination" means the end of a business relationship between a sales representative and a principal, whether by:
     (a) agreement;
     (b) expiration of a time period; or
     (c) exercise of a right of termination by either the principal or the sales representative.

Enacted by Chapter 65, 2007 General Session
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Last revised: Thursday, May 28, 2009