2017 Arizona Revised Statutes
Title 44 - Trade and Commerce
§ 44-1798 Definitions

Universal Citation: AZ Rev Stat § 44-1798 (2017)

44-1798. Definitions

In this article, unless the context otherwise requires:

1. " Commission" means:

(a) Compensation accruing to a sales representative for payment by a principal the rate of which is expressed as a percentage of the dollar amount of orders or sales.

(b) Any other method of compensation agreed to between a sales representative and a principal, including fees for services and retainers.

2. " Principal" means a person who does all of the following:

(a) Engages in the business of manufacturing, producing, importing, selling or distributing a product or service.

(b) Uses sales representatives to solicit orders for the product or service.

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

3. " Sales representative" :

(a) Means a person who does both of the following:

(i) Establishes a business relationship with a principal to solicit orders for products or services.

(ii) Is compensated, in whole or in part, by commission.

(b) Is not an employee or a person who places orders or purchases on the person's own account or for resale.

4. " Termination" means the end of the business relationship between the sales representative and the principal, whether by agreement, by expiration of time or by exercise of a right of termination by either party.

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