§ 3-601
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/md/labor-and-employment/3-601·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§3–601.
(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; or
3. 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.
(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.