As used in this chapter:

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 of each order or sale.
2. (2) "Person" means an individual, corporation, partnership, association, estate, or trust.

3. (3) "Principal" means a person 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.

HISTORY: 1988 Act No. 489, eff May 2, 1988.