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2. An arrangement falls within this paragraph if—
(a)the business of the principal is the sale, or as the case may be purchase, of goods of a particular kind; and
(b)the goods concerned are such that—
(i)transactions are normally individually negotiated and concluded on a commercial basis, and
(ii)procuring a transaction on one occasion is likely to lead to further transactions in those goods with that customer on future occasions, or to transactions in those goods with other customers in the same geographical area or among the same group of customers, and
that accordingly it is in the commercial interests of the principal in developing the market in those goods to appoint a representative to such customers with a view to the representative devoting effort, skill and expenditure from his own resources to that end.
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