In this chapter:

1. (1) "Commission" means compensation paid a sales representative by a principal in an amount based on a percentage of the dollar amount of certain orders for or sales of the principal's product.

2. (2) "Principal" means a person who:

   1. (A) manufactures, produces, imports, or distributes a product for sale;
   2. (B) uses a sales representative to solicit orders for the product; and
   3. (C) compensates the sales representative wholly or partly by commission.

3. (3) "Sales representative" means an independent contractor who solicits, on behalf of a principal, orders for the purchase at wholesale of the principal's product.

   Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.