Sec. 54.001. DEFINITIONS. In this chapter:
(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) manufactures, produces, imports, or distributes a product for sale;
(B) uses a sales representative to solicit orders for the product; and
(C) compensates the sales representative wholly or partly by commission.
(3) "Sales representative" means an independent contractor who solicits, on behalf of a principal, orders for the purchase at wholesale of the principal's product.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.