2017 Arizona Revised Statutes
Title 44 - Trade and Commerce
§ 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.