Utah Code 34-44-102. Definitions
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As used in this chapter:
(1) “Business relationship” means an agreement that governs the relationship of principal and sales representative.
Terms Used In Utah Code 34-44-102
- 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
- Direct sales company: means a person that:
(3)(a)(i) sells, distributes, or supplies for consideration a good or service through participants:(3)(a)(i)(A) at different levels of distribution; or(3)(a)(i)(B) in accordance with a formula for compensating participants in whole or in part based on:(3)(a)(i)(B)(I) the sale of a good or service; and(3)(a)(i)(B)(II) the recruitment of or the performance or action of another participant; and(3)(a)(ii)(3)(a)(ii)(A) permits participants to recruit other participants to sell, distribute, or supply for consideration the person's good or service; or(3)(a)(ii)(B) provides for commission, cross-commissions, override commissions, bonuses, refunds, dividends, or other consideration that is or may be paid as a result of:(3)(a)(ii)(B)(I) the sale of a good or service; or(3)(a)(ii)(B)(II) the recruitment of or the performance or action of another participant. See Utah Code 34-44-102- participant: means an independent agent, contractor, or distributor. See Utah Code 34-44-102
- Person: means :
(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5- 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- termination: means the end of a business relationship between a sales representative and a principal, whether by:
(6)(a) agreement;(6)(b) expiration of a time period; or(6)(c) exercise of a right of termination by either the principal or the sales representative. See Utah Code 34-44-102(2) “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.(3)(3)(a) “Direct sales company” means a person that:(3)(a)(i) sells, distributes, or supplies for consideration a good or service through participants:(3)(a)(i)(A) at different levels of distribution; or(3)(a)(i)(B) in accordance with a formula for compensating participants in whole or in part based on:(3)(a)(i)(B)(I) the sale of a good or service; and(3)(a)(i)(B)(II) the recruitment of or the performance or action of another participant; and(3)(a)(ii)(3)(a)(ii)(A) permits participants to recruit other participants to sell, distribute, or supply for consideration the person’s good or service; or(3)(a)(ii)(B) provides for commission, cross-commissions, override commissions, bonuses, refunds, dividends, or other consideration that is or may be paid as a result of:(3)(a)(ii)(B)(I) the sale of a good or service; or(3)(a)(ii)(B)(II) the recruitment of or the performance or action of another participant.(3)(b) As used in this Subsection (3), “participant” means an independent agent, contractor, or distributor.(4) “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.(5)(5)(a) Except as provided in Subsection (5)(b), “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.(5)(b) “Sales representative” does not include:(5)(b)(i) an employee of a principal;(5)(b)(ii) a person licensed under Title 31A, Insurance Code;(5)(b)(iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;(5)(b)(iv) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act;(5)(b)(v) a person who provides a product or service under a business relationship with a principal that is incident to the purchase or sale of real property;(5)(b)(vi) a person who places an order or purchases a product or service for that person’s own account for resale; or(5)(b)(vii) an independent agent, contractor, or distributor through whom a direct sales company supplies for consideration a good or service.(6) “Terminates” or “termination” means the end of a business relationship between a sales representative and a principal, whether by:(6)(a) agreement;(6)(b) expiration of a time period; or(6)(c) exercise of a right of termination by either the principal or the sales representative. - Direct sales company: means a person that: