16. Agent.—Commercially speaking, an agent is one who acts as the direct representative of a manu facturer, a jobber or a retailer, who is compensated on some other than a straight salary basis, and who, in the details of his activities, is not responsible to his principal. The line between certain kinds of salesmen working on a commission basis and sales agents is difficult to draw distinctly. The agent is an independent business man, often taking orders from his principal with respect to policy, profits, prices, terms of credit, etc., but yet retaining very large control over his own activities. Some of the additional characteristics of the agency relation may be noted. The agent usually sells by sample. Like the salaried employe of the principal, the agent binds the principal absolutely within the scope of his agency and does not assume individual liability for his acts. Goods shipped to the agent for delivery remain the property of the principal, who must bear all fire and other risks. The term agent is used very loosely in business. Sales managers are frequently incorrectly referred to as sales agents. Traveling salesmen are often agents in popular speech. Incor rect uses of the word should be avoided.
17. COMMiSSi011 merchaizt.—The commission mer
chant or commission man is one who receives goods on consignment from his clients (manufacturers, jobbers or retailers), sells them for what they will bring, and retains a part of the sales price as his com mission. Goods are sent to him at his risk. Usually Ile has large discretion in the fixing of prices and terms, and is responsible for the payment of his cus tomers' accounts. Commission merchants are found chiefly in white goods lines, grain, produce, cotton and chemicals. The term commission merchant, however, is often incorrectly applied even in these lines. Many men dealing in produce, for instance, altho formerly strictly commission merchants, now have their own buyers in the country and buy out right the produce they are to sell again. Altho often incorrectly called commission men, they are either jobbers or retailers, as they sell either to dealers or to consumers.
18. Broker.—The term broker is applied to deal ers trading on a commission basis in many different lines of products, which oftentimes have varying trade usages. In the mercantile world brokers are fre quently found, but they handle normally a much smaller proportion of the world's manufactured goods than of raw products.