Ch. 291                                     1993 LAWS OF MARYLAND

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Labor and Employment

3-601.                                                                                                                                                                                                                                        

(a)     In this subtitle the following words have the meanings indicated.

(b)     "Commission" means compensation that:

(1)     is due to a sales representative from a principal; and

(2)     accrues at:

(i) a specified amount for each order or sale; or

(ii) a rate expressed as a percentage of the dollar amount that a sales
representative:

1. takes in orders for the principal;

2. makes in sales for the principal; or

3. earns in profits for the principal;

(c)     "Principal" means a sales corporation, partnership, proprietorship, or other
business entity that:

(1) [does not have a fixed place of business in the State;

(2)] distributes, imports, manufactures, or produces a product for wholesale;

[(3)] (2) enters into a contract with a sales representative to solicit a
wholesale order for the product; and                                                   

[(4)](3) pays the sales representative wholly or partly by commission.

(d)     (1) "Sales representative" means a person who:

(i) enters into a contract with a principal to solicit in the State a
wholesale order; and                                                                                 

(ii) is paid wholly or partly by commission.             

(2) "Sales representative" does not include a person who:

(i) buys a product or places an order for a product for resale by that

person; or

buyer.
3-602.

(ii) sells or takes an order for the sale of a product to an ultimate

This subtitle does not apply to an individual who is considered under the Maryland
Wage Payment and Collection Law to be employed by a principal.

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