As used in this subchapter, unless the context otherwise requires:(1) 'Commission' means compensation paid a sales representative by a principal in an amount based on a percentage of the dollar amount of certain orders for, or sales of, the principal's product;(2) 'Principal' means a person who:(A) Does not have a permanent or fixed place of business in this state;(B) Manufactures, produces, imports, or distributes a product for sale to customers who purchase the product for resale;(C) Uses a sales representative to solicit orders for the product; and(D) Compensates the sales representative in whole or in part by commission; and(3) 'Sales representative' means a person who solicits on behalf of a principal orders for the purchase at wholesale of the principal's product. The term 'sales representative' does not include a person who places orders for or purchases the product for his or her own account for resale, or is engaged in door-to-door sales regulated by § 4-89-101 et seq.Acts 1989, No. 464, § 1.
Arkansas Legal Code