§ 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.