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Maryland Code, Labor and Employment § 3-601

Current as of January 01, 2025 | Updated by Findlaw Staff

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

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

(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

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

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Cite this article: FindLaw.com - Maryland Code, Labor and Employment § 3-601 - last updated January 01, 2025 | https://codes.findlaw.com/md/labor-and-employment/md-code-labor-and-emply-sect-3-601/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

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