Sec. 42-481. Definitions.
228 words·~1 min read·
/ct/title-42/chapter-743ff-sales-representatives-commissions/42-481·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in sections 42-481 to 42-484 , inclusive:
(1)“Commission” means compensation that accrues to a sales representative, for payment by a principal, at a rate expressed as a percentage of the dollar amount of sales, orders or profits or any other method of compensation agreed to between a sales representative and principal including, but not limited to, fees for services and retainers;
(2)“Person” means an individual, corporation, limited liability company, partnership, unincorporated association, trust or estate;
(3)“Principal” means a person who:
(A)Manufactures, produces, imports, sells or distributes a product or service,
(B)establishes a business relationship with a sales representative to solicit orders for a product or service, and
(C)compensates a sales representative, in whole, or in part, by commission;
(4)“Sales representative” means a person who:
(A)Establishes a business relationship with a principal to solicit orders for products or services, and
(B)is compensated in whole, or in part, by commission. “Sales representative” does not include an employee or a person who places orders or purchases on the person's own account or for resale or a seller, as defined in subsection
(c)of section 42-134a ; and
(5)“Termination” means the end of the business relationship between a sales representative and a principal, whether by the principal or the sales representative, or by operation of the terms of a contract.