2018 Maryland Code
Labor and Employment
Title 3 - Employment Standards and Conditions
Subtitle 6 - Wholesale Sales Representatives
§ 3-601. Definitions

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

  • (b) Commission. -- "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. -- "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) Sales representative. --

    • (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.

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