As used in the Sales Representatives Recognition Act:
1. "Commission" means compensation accruing to a person for payment by another person, the rate of which is expressed as a percentage of the dollar amount of orders, sales or profits;
2. "Principal" means any person who does not have a permanent or fixed place of business in this state and who does all of the following:
a.Engages in the business of manufacturing, producing, importing or distributing one or more products for sale to customers who purchase products for resale,
b.Utilizes one or more sales representatives to solicit wholesale orders for those products, and
c.Compensates the sales representatives in whole or in part by commission; and
3. "Sales representative" means a person who contracts with a principal to solicit wholesale orders for a product within this state and who is compensated, in whole or in part, by commission. "Sales representative" does not include a person who places orders for or purchases the product for his own account for resale, a person who is an employee of a principal, or a person who sells the product to the ultimate consumer.
Added by Laws 1989, c. 268, § 2, eff. Nov. 1, 1989.
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