(a) In this subtitle the following words have the meanings indicated. (b) 'Commission' means compensation that: (1) is due to a sales representative from a principal; and (2) accrues at: (i) a specified amount for each order or sale; or (ii) a rate expressed as a percentage of the dollar amount that a sales representative: 1. takes in orders for the principal; 2. makes in sales for the principal; or 3. earns in profits for the principal. (c) 'Principal' means a sales corporation, partnership, proprietorship, or other business entity that: (1) distributes, imports, manufactures, or produces a product for wholesale; (2) enters into a contract with a sales representative to solicit a wholesale order for the product; and (3) pays the sales representative wholly or partly by commission. (d) (1) 'Sales representative' means a person who: (i) enters into a contract with a principal to solicit in the State a wholesale order; and (ii) is paid wholly or partly by commission. (2) 'Sales representative' does not include a person who: (i) buys a product or places an order for a product for resale by that person; or (ii) sells or takes an order for the sale of a product to an ultimate buyer.
Maryland Legal Code