§ 10-1-700. Definitions

As used in this article, the term:

1. “Commission” means 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 or as a specified amount per order or per sale.
2. “Principal” means a person who does business in this state and who:
   1. Manufactures, produces, imports, or distributes a tangible product for wholesale;
   2. Contracts with a sales representative to solicit orders for the product; and
   3. Compensates the sales representative in whole or in part by commission.
3. “Sales representative” means a person who contracts with a principal to solicit wholesale orders and who is compensated in whole or in part by a commission, but such term does not include one who places orders or purchases for his or her own account for resale.

History. Code 1981, § 10-1-700 , enacted by Ga. L. 1986, p. 884, § 1; Ga. L. 1993, p. 1092, § 1.