34-44-102. Definitions.
As used in this chapter:
(1) "Business relationship" means an agreement that governs the relationship of principal and sales representative.
(2) "Commission" means: compensation: that accrues to a sales representative; for payment by a principal; and at a rate expressed as a percentage of the dollar amount of sales, orders, or profits; or any other method of compensation agreed to between a sales representative and a principal including: fees for services; and a retainer.
(3) "Direct sales company" means a person that: sells, distributes, or supplies for consideration a good or service through participants: at different levels of distribution; or in accordance with a formula for compensating participants in whole or in part based on: the sale of a good or service; and the recruitment of or the performance or action of another participant; and permits participants to recruit other participants to sell, distribute, or supply for consideration the person's good or service; or provides for commission, cross-commissions, override commissions, bonuses, refunds, dividends, or other consideration that is or may be paid as a result of: the sale of a good or service; or the recruitment of or the performance or action of another participant. As used in this Subsection, "participant" means an independent agent, contractor, or distributor. (3)
(4) "Principal" means a person who: engages in any of the following activities with regard to a product or service: manufactures; produces; imports; sells; or distributes; establishes a business relationship with a sales representative to solicit orders for a product or a service described in Subsection; and (4)(a) agrees to compensate a sales representative, in whole or in part, by commission.
(5) Except as provided in Subsection, "sales representative" means a person who enters into a business relationship with a principal: (5)(b) to solicit orders for a product or a service described in Subsection; and (4)(a) under which the person is compensated, in whole or in part, by commission. "Sales representative" does not include: an employee of a principal; a person licensed under; Title 31A, Insurance Code a person licensed under; Title 41, Chapter 3, Part 2, Licensing a person licensed under; Title 61, Chapter 2f, Real Estate Licensing and Practices Act 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; a person who places an order or purchases a product or service for that person's own account for resale; or 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: agreement; expiration of a time period; or exercise of a right of termination by either the principal or the sales representative.