If a principal makes a revocable offer of a commission to a sales representative, the sales representative is entitled to the commission agreed upon under the business relationship if:

(1) the principal revokes the offer of commission;

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Terms Used In Utah Code 34-44-203

  • Business relationship: means an agreement that governs the relationship of principal and sales representative. See Utah Code 34-44-102
  • Commission: means :
         (2)(a) compensation:
              (2)(a)(i) that accrues to a sales representative;
              (2)(a)(ii) for payment by a principal; and
              (2)(a)(iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits; or
         (2)(b) any other method of compensation agreed to between a sales representative and a principal including:
              (2)(b)(i) fees for services; and
              (2)(b)(ii) a retainer. See Utah Code 34-44-102
  • Principal: means a person who:
         (4)(a) engages in any of the following activities with regard to a product or service:
              (4)(a)(i) manufactures;
              (4)(a)(ii) produces;
              (4)(a)(iii) imports;
              (4)(a)(iv) sells; or
              (4)(a)(v) distributes;
         (4)(b) establishes a business relationship with a sales representative to solicit orders for a product or a service described in Subsection (4)(a); and
         (4)(c) agrees to compensate a sales representative, in whole or in part, by commission. See Utah Code 34-44-102
  • sales representative: means a person who enters into a business relationship with a principal:
              (5)(a)(i) to solicit orders for a product or a service described in Subsection (4)(a); and
              (5)(a)(ii) under which the person is compensated, in whole or in part, by commission. See Utah Code 34-44-102
(2) the sales representative establishes that the revocation is for a purpose of avoiding payment of the commission;
(3) the revocation occurs after the principal obtains an order for the principal’s product or service through the efforts of the sales representative; and
(4) the principal’s product or service that is the subject of the order is provided to and paid for by a customer.