As used in KRS 371.375 to 371.385, unless the context otherwise requires:

1. (1) "Commissions" means compensation accruing to a sales representative for payment by a principal, the rate of which is expressed as a percentage of the amount of orders or sales or as a specified amount per order or per sale.
2. (2) "Person" means an individual, corporation, partnership, association, estate, or trust.

3. (3) "Principal" means a person who does not have a permanent or fixed place of business in this state and who:

   1. (a) Manufactures, produces, imports, or distributes a tangible product for wholesale;
   2. (b) Contracts with a sales representative to solicit orders for the product; and
   3. (c) Compensates the sales representative, in whole or in part, by commission.

4. (4) "Sales representative" means a person who:

   1. (a) Contracts with a principal to solicit wholesale orders;
   2. (b) Is compensated, in whole or in part, by commission;
   3. (c) Does not place orders or purchase for his own account or for resale; and
   4. (d) Does not sell or take orders for the sale of products to the ultimate consumer.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 167, sec. 1, effective July 15, 1988.