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§ 3-601. Definitions

MD Lab & Emp Code § 3-601 (2019) (N/A)
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(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.

(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.

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§ 3-602. Scope of subtitle