Ark. Code Ann. » Title 4 Chapter 70
Arkansas Code Annotated

Ark. Code Ann. § 4-70-301 (2026)

Definitions

✓ current as of May 2026
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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:
    1. Does not have a permanent or fixed place of business in this state;
    2. Manufactures, produces, imports, or distributes a product for sale to customers who purchase the product for resale;
    3. Uses a sales representative to solicit orders for the product; and
    4. 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.

History. Acts 1989, No. 464, § 1.

Notes of Decisions
Cited in 4 cases, 2014–2019 · leading case: Rico Indus., Inc. v. TLC Grp., Inc., 2014 IL App (1st) 131522 (Ill. App. Ct. 2014).
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Rico Indus., Inc. v. TLC Grp., Inc., 2014 IL App (1st) 131522 (Ill. App. Ct. 2014). “Ark. Code Ann. § 4-70-301 et seq. (West 2012); 820 ILCS 120/0.”
Rico Indus., Inc. v. TLC Grp., Inc., 2018 IL App (1st) 172279 (Ill. App. Ct. 2018). “On the same day, defendant filed an answer to count II of the second amended complaint and a five-count counterclaim, in which defendant raised claims for (1) an accounting; (2) breach of contract, based on plaintiff's alleged failure to pay commissions; (3) violation of the…”
Rico Indus., Inc. v. TLC Grp., Inc., 2018 IL App (1st) 172279 (Ill. App. Ct. 2019). “On the same day, defendant filed an answer to count II of the second amended complaint and a five-count counterclaim, in which defendant raised claims for (1) an accounting; (2) breach of contract based on plaintiff’s alleged failure to pay commissions; (3) violation of the…”
4M Design Resources, Inc. v. Yell Steel Enter. Co Inc. (W.D. Ark. 2018). · cites it 4× “” Yell Steel contends that it does not qualify as a principal under the plain language of the ASRCA, since a principal is defined as one who “[d]oes not have a permanent or fixed place of business” in Arkansas, Ark. Code Ann. § 4-70-301 (2)(A) (emphasis added), and the parties…”
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