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Session Laws, 1988
Volume 770, Page 5025   View pdf image
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WILLIAM DONALD SCHAEFER, Governor                   Ch. 771

(B)  "COMMISSION" MEANS COMPENSATION ACCRUING TO A SALES
REPRESENTATIVE FOR PAYMENT BY A PRINCIPAL, AT:

(1)  A RATE EXPRESSED AS A PERCENTAGE OF THE DOLLAR
AMOUNT OF ORDERS TAKEN, SALES MADE, OR PROFITS EARNED FOR THE
PRINCIPAL BY THE SALES REPRESENTATIVE; OR

(2)  A SPECIFIED AMOUNT PER ORDER OR PER SALE.

(C)  "PERSON" MEANS AN INDIVIDUAL, CORPORATION, PARTNERSHIP,
UNINCORPORATED ASSOCIATION, ESTATE, OR TRUST.

(D)  "PRINCIPAL" MEANS A SALES PROPRIETORSHIP, PARTNERSHIP,
CORPORATION, OR OTHER BUSINESS ENTITY THAT:

(1)  DOES NOT HAVE A FIXED PLACE OF BUSINESS IN THE
STATE;

(2)  MANUFACTURES, PRODUCES, IMPORTS, OR DISTRIBUTES A
PRODUCT FOR WHOLESALE;

(3)  CONTRACTS WITH A SALES REPRESENTATIVE TO SOLICIT
ORDERS FOR THE PRODUCT; AND

(4)  COMPENSATES THE SALES REPRESENTATIVE, IN WHOLE OR
PART, BY COMMISSION.

(E)  (1) "SALES REPRESENTATIVE" MEANS A PERSON WHO:

(I)  CONTRACTS WITH A PRINCIPAL TO SOLICIT
WHOLESALE ORDERS WITHIN THE STATE; AND

(II)  IS COMPENSATED, IN WHOLE OR PART, BY
COMMISSION.

(2) "SALES REPRESENTATIVE" DOES NOT INCLUDE A PERSON
WHO:

(I)  PLACES ORDERS OR PURCHASES FOR THE PERSON'S
OWN ACCOUNT FOR RESALE;

(II)  QUALIFIES AS AN EMPLOYEE OF THE PRINCIPAL
UNDER THE MARYLAND WAGE PAYMENT AND COLLECTION LAW; OR

(III)  SELLS OR TAKES ORDERS FOR THE SALE OF
PRODUCTS TO THE ULTIMATE CONSUMER.

128.

WHEN A CONTRACT BETWEEN A SALES REPRESENTATIVE AND A
PRINCIPAL IS TERMINATED, THE PRINCIPAL SHALL PAY ALL COMMISSIONS
ACCRUED UNDER THE CONTRACT TO THE SALES REPRESENTATIVE WITHIN 21

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Session Laws, 1988
Volume 770, Page 5025   View pdf image
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