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§ 3-601. Definitions

West's Annotated Code of MarylandLabor and Employment

West's Annotated Code of Maryland
Labor and Employment
Title 3. Employment Standards and Conditions (Refs & Annos)
Subtitle 6. Wholesale Sales Representatives (Refs & Annos)
MD Code, Labor and Employment, § 3-601
§ 3-601. Definitions
Currentness
In general
(a) In this subtitle the following words have the meanings indicated.
Commission
(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.
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.
Sales representative
(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.

Credits

Added by Acts 1991, c. 8, § 2, eff. Oct. 1, 1991. Amended by Acts 1993, c. 291.
Formerly Art. 100, § 127.
MD Code, Labor and Employment, § 3-601, MD LABOR & EMPLY § 3-601
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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