'Definitions for Manufacturers' Representative, Agent and Broker'
U.S. Industrial Commerce uses the following definitions for manufacturers representative, agent and broker:
Manufacturers’ Representative:“An independent contractor, a natural person or legal entity, contracted, with continuing, but, very limited authority, if any, to obtain customers and/or orders for, and at times negotiate and conclude, the sale of goods or services for another legal entity, a company, or person(s), typically a manufacturer which is usually referred to as Principal. Typically, representing several, various, synergistic, non-competitive companies’ products or services.” (Such as a Manufacturers’ Representative in the industrial safety market, representing various synergistic, but, not competitive, manufacturers, or Principals.)
Agent: “A person or legal entity, formally authorized to negotiate and act on behalf of another”. Typically, representing only one company. (Such as a Purchasing Agent’s authority to purchase goods or services on behalf of his or her company.)
Broker: “An independent contractor or legal entity who acts as an intermediary between a buyer and a seller. Typically, representing several (possibly competitive) companies, products and services.” (Such as an insurance broker, representing several companies, handling various types of coverage).
Respectfully submitted by Mr. George J. Hayward