Current with changes from the 2024 Legislative Session
Section 3-601 - Definitions(a) In this subtitle the following words have the meanings indicated.(b) "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; or3. earns in profits for the principal.(c) "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)(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.