2015 Utah Code
Title 34 - Labor in General
Chapter 44 - Sales Representative Commission Payment Act
Part 1 - General Provisions
Section 102 - Definitions.

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 2f, Real Estate Licensing and Practices Act;
    • (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.

Amended by Chapter 379, 2010 General Session