If a principal makes a revocable offer of a commission to a sales representative, the sales representative is entitled to the commission agreed on if all of the following apply:

Terms Used In Arizona Laws 44-1798.03

  • Commission: means :

    (a) Compensation accruing to a sales representative for payment by a principal the rate of which is expressed as a percentage of the dollar amount of orders or sales. See Arizona Laws 44-1798

  • Principal: means a person who does all of the following:

    (a) Engages in the business of manufacturing, producing, importing, selling or distributing a product or service. See Arizona Laws 44-1798

1. The principal revokes the offer of commission and the sales representative establishes that the revocation was for a purpose of avoiding payment of the commission.

2. The revocation occurs after the principal has obtained an order for the principal’s product or service through the efforts of the sales representative.

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

 

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