44-1798. Definitions In this article, unless the context otherwise requires: 1. ' 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. (b) Any other method of compensation agreed to between a sales representative and a principal, including fees for services and retainers. 2. ' 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. (b) Uses sales representatives to solicit orders for the product or service. (c) Compensates the sales representative in whole or part by commission. 3. ' Sales representative' : (a) Means a person who does both of the following: (i) Establishes a business relationship with a principal to solicit orders for products or services. (ii) Is compensated, in whole or in part, by commission. (b) Is not an employee or a person who places orders or purchases on the person's own account or for resale. 4. ' Termination' means the end of the business relationship between the sales representative and the principal, whether rson who places orders or purchases on the person's own account or for resale. 4. ' Termination' means the end of the business relationship between the sales representative and the principal, whether by agreement, by expiration of time or by exercise of a right of termination by either party.
Arizona Legal Code