Utah Code 34-44-203. Revocable offer of commission

If a principal makes a revocable offer of a commission to a sales representative, the sales representative is entitled to the commission agreed upon under the business relationship if:

(1)	the principal revokes the offer of commission;

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Terms Used In Utah Code 34-44-203

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
(2)	the sales representative establishes that the revocation is for a purpose of avoiding payment of the commission;

(3)	the revocation occurs after the principal obtains an order for the principal’s product or service through the efforts of the sales representative; and

(4)	the principal’s product or service that is the subject of the order is provided to and paid for by a customer.

Enacted by Chapter 65, 2007 General Session

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