{"data":{"id":"us-ut/utah-code-34-44-102","jurisdiction":"us-ut","citation":"Utah Code § 34-44-102","heading":"Definitions.","body":"As used in this chapter:\n(1) \"Business relationship\" means an agreement that governs the relationship of principal and sales representative.\n(2) \"Commission\" means:\n(a) compensation:\n(i) that accrues to a sales representative;\n(ii) for payment by a principal; and\n(iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits; or\n(b) any other method of compensation agreed to between a sales representative and a principal including:\n(i) fees for services; and\n(ii) a retainer.\n(3)\n(a) \"Direct sales company\" means a person that:\n(i) sells, distributes, or supplies for consideration a good or service through participants:\n(A) at different levels of distribution; or\n(B) in accordance with a formula for compensating participants in whole or in part based on:\n(I) the sale of a good or service; and\n(II) the recruitment of or the performance or action of another participant; and\n(ii)\n(A) permits participants to recruit other participants to sell, distribute, or supply for consideration the person's good or service; or\n(B) provides for commission, cross-commissions, override commissions, bonuses, refunds, dividends, or other consideration that is or may be paid as a result of:\n(I) the sale of a good or service; or\n(II) the recruitment of or the performance or action of another participant.\n(b) As used in this Subsection (3), \"participant\" means an independent agent, contractor, or distributor.\n(4) \"Principal\" means a person who:\n(a) engages in any of the following activities with regard to a product or service:\n(i) manufactures;\n(ii) produces;\n(iii) imports;\n(iv) sells; or\n(v) distributes;\n(b) establishes a business relationship with a sales representative to solicit orders for a product or a service described in Subsection (4)(a); and\n(c) agrees to compensate a sales representative, in whole or in part, by commission.\n(5)\n(a) Except as provided in Subsection (5)(b), \"sales representative\" means a person who enters into a business relationship with a principal:\n(i) to solicit orders for a product or a service described in Subsection (4)(a); and\n(ii) under which the person is compensated, in whole or in part, by commission.\n(b) \"Sales representative\" does not include:\n(i) an employee of a principal;\n(ii) a person licensed under Title 31A, Insurance Code;\n(iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;\n(iv) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act;\n(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;\n(vi) a person who places an order or purchases a product or service for that person's own account for resale; or\n(vii) an independent agent, contractor, or distributor through whom a direct sales company supplies for consideration a good or service.\n(6) \"Terminates\" or \"termination\" means the end of a business relationship between a sales representative and a principal, whether by:\n(a) agreement;\n(b) expiration of a time period; or\n(c) exercise of a right of termination by either the principal or the sales representative.","path":["Title 34 Labor in General","Chapter 34-44 Sales Representative Commission Payment Act","Part 34-44-1 General Provisions"],"source_url":"https://le.utah.gov/xcode/Title34/Chapter44/34-44-S102.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"d73557311d386768c9a8585a4057a72b3947a6d5123215d537cf1a01524c8d19","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-34-44-101","next":"us-ut/utah-code-34-44-103"},"notice":"GroundRules: Original legal text. Not legal advice."}