UT Code § 34-44-102 (2021)
2021 Utah Code|Title 34 - Labor in General|Chapter 44 - Sales Representative Commission Payment Act|Part 1 - General Provisions|Section 102 - Definitions.

 Effective 5/14/2019  34-44-102. Definitions.  As used in this chapter:  (1) "Business relationship" means an agreement that governs the relationship of principal and sales representative.     (2) "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.         (3)   (a) "Direct sales company" means a person that:   (i) sells, distributes, or supplies for consideration a good or service through participants:   (A) at different levels of distribution; or     (B) in accordance with a formula for compensating participants in whole or in part based on:   (I) the sale of a good or service; and     (II) the recruitment of or the performance or action of another participant; and         (ii)   (A) permits participants to recruit other participants to sell, distribute, or supply for consideration the person's good or service; or     (B) provides for commission, cross-commissions, override commissions, bonuses, refunds, dividends, or other consideration that is or may be paid as a result of:   (I) the sale of a good or service; or     (II) the recruitment of or the performance or action of another participant.           (b) As used in this Subsection (3), "participant" means an independent agent, contractor, or distributor.       (4) "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.       (5)   (a) Except as provided in Subsection (5)(b), "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.       (b) "Sales representative" does not include:   (i) an employee of a principal;     (ii) a person licensed under Title 31A, Insurance Code;     (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;     (iv) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act;     (v) a person who provides a product or service under a business relationship with a principal that is incident to the purchase or sale of real property;     (vi) a person who places an order or purchases a product or service for that person's own account for resale; or     (vii) an independent agent, contractor, or distributor through whom a direct sales company supplies for consideration a good or service.         (6) "Terminates" or "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.      Amended by Chapter 438, 2019 General Session