US Laws, Codes, Statutes & Cases

      (a)      In this subtitle the following words have the meanings indicated.

      (b)      "Commission" means compensation that:

            (1)      is due to a sales representative from a principal; and

            (2)      accrues at:

                  (i)      a specified amount for each order or sale; or

                  (ii)      a rate expressed as a percentage of the dollar amount that a sales representative:

                        1.      takes in orders for the principal;

                        2.      makes in sales for the principal; or

                        3.      earns in profits for the principal.

      (c)      "Principal" means a sales corporation, partnership, proprietorship, or other business entity that:

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

            (2)      enters into a contract with a sales representative to solicit a wholesale order for the product; and

            (3)      pays the sales representative wholly or partly by commission.

      (d)      (1)      "Sales representative" means a person who:

                  (i)      enters into a contract with a principal to solicit in the State a wholesale order; and

                  (ii)      is paid wholly or partly by commission.

            (2)      "Sales representative" does not include a person who:

                  (i)      buys a product or places an order for a product for resale by that person; or

                  (ii)      sells or takes an order for the sale of a product to an ultimate buyer.