Definitions
This law defines three key words used in a set of rules about sales commissions. A 'commission' is money paid to a salesperson based on a percentage or set amount of what they sell. A 'principal' is a business that makes or sells a product or service, hires someone to find buyers, and pays that person by commission. A 'sales representative' is a person or business hired by a principal to find buyers and get paid by commission, but does not include someone who buys products themselves to resell.
407.911. Definitions. — As used in sections 407.911 to 407.915, the following terms mean:
(1) "", to a for payment by a , the rate of which is expressed as a percentage of the dollar amount of s or sales, or as a specified amount per order or per sale;
(2) "Principal", a person, firm, , or other , whether or not it has a permanent or place of business in this state, and who:
(a) , produces, imports, provides, or a product or for sale;
(b) Contracts with a sales representative to for the product or service; and
(c) Compensates the sales representative, in whole or in part, by commission;
(3) "Sales representative", a person, firm, corporation, partnership, or other business entity who contracts with a principal to solicit orders and who is compensated, in whole or in part, by commission, but shall not include a person, firm, corporation, partnership, or other business entity who places orders or purchases for its own account for .
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Source & history notes
(L. 1989 S.B. 192 § 1 subsec. 1, A.L. 2005 S.B. 211)
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