Utah Code 34-44-201. Written business relationship

(1)	The business relationship between a sales representative and a principal shall be in a writing signed by both the principal and the sales representative.

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Terms Used In Utah Code 34-44-201

Business relationship: means an agreement that governs the relationship of principal and sales representative. See Utah Code 34-44-102
Commission: means :

(a)

compensation:

(i)	that accrues to a sales representative;

(ii)	for payment by a principal; and

(iii)

at a rate expressed as a percentage of the dollar amount of sales, orders, or profits; or

(b)

any other method of compensation agreed to between a sales representative and a principal including:

(i)	fees for services; and

(ii)

a retainer. See Utah Code 34-44-102

Principal: means a person who:

(a)

engages in any of the following activities with regard to a product or service:

(i)	manufactures;

(ii)

produces;

(iii)

imports;

(iv)

sells; or

(v)	distributes;

(b)	establishes a business relationship with a sales representative to solicit orders for a product or a service described in Subsection (4)(a); and

(c)

agrees to compensate a sales representative, in whole or in part, by commission. See Utah Code 34-44-102

sales representative: means a person who enters into a business relationship with a principal:

(i)	to solicit orders for a product or a service described in Subsection (4)(a); and

(ii)

under which the person is compensated, in whole or in part, by commission. See Utah Code 34-44-102

Writing: includes :Utah Code 68-3-12.5

(2)

The writing required by Subsection (1) shall set forth the method by which the sales representative’s commission is:

(a)	computed; and

(b)

paid.

(3)	The principal shall provide the sales representative with a copy of the signed writing required by Subsection (1).

Enacted by Chapter 65, 2007 General Session

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