(1) The business relationship between a sales representative and a principal shall be in a writing signed by both the principal and the sales representative.

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Terms Used In Utah Code 34-44-201

  • 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
  • Writing: includes :
         (48)(a) printing;
         (48)(b) handwriting; and
         (48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5
(2) The writing required by Subsection (1) shall set forth the method by which the sales representative’s commission is:

     (2)(a) computed; and
     (2)(b) paid.
(3) The principal shall provide the sales representative with a copy of the signed writing required by Subsection (1).