(1)  The principal shall pay a sales representative all commissions due to the sales representative during the time the business relationship between the principal and sales representative is in effect in accordance with the writing required by Section 34-44-201.

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Terms Used In Utah Code 34-44-202

  • 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
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • termination: means the end of a business relationship between a sales representative and a principal, whether by:
    (a) agreement;
    (b) expiration of a time period; or
    (c) exercise of a right of termination by either the principal or the sales representative. See Utah Code 34-44-102
  • Writing: includes :Utah Code 68-3-12.5
    • (2)  If a business relationship between a principal and sales representative terminates, the principal shall pay to the sales representative:

    (a)  within 30 days after the day on which the termination is effective, all commissions due on the day on which the termination is effective; and

    (b)  within 14 days after the day on which a commission becomes due if the commission is due after the day on which the termination is effective.

    (3) 

    (a)  Unless payment is made pursuant to a binding and final written settlement agreement and release, the acceptance by a sales representative of a partial commission paid by the principal under the business relationship does not constitute a release as to the balance of any commission that the sales representative claims is due because of the business relationship.

    (b)  A full release of all commission claims required by a principal as a condition to a partial commission payment is void.

    Enacted by Chapter 65, 2007 General Session

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