SECTIONS 17040-17051 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 17040-17051

17040. It is unlawful for any person engaged in the production,
manufacture, distribution or sale of any article or product of
general use or consumption, with intent to destroy the competition of
any regular established dealer in such article or product, or to
prevent the competition of any person who in good faith, intends and
attempts to become such dealer, to create locality discriminations.
Nothing in this section prohibits the meeting in good faith of a
competitive price.

17041. Nothing in this chapter prohibits locality discriminations
which make allowances for differences, if any, in the grade, quality
or quantity when based and justified in the cost of manufacture, sale
or delivery, or the actual cost of transportation from the point of
production, if a raw product or commodity, or from the point of
manufacture if a manufactured product or commodity, or from the point
of shipment to the point of destination.

17042. Nothing in this chapter prohibits any of the following:
(a) A selection of customers.
(b) A functional classification by any person of any customer as
broker, jobber, wholesaler or retailer.
(c) A differential in price for any article or product as between
any customers in different functional classifications.

17043. It is unlawful for any person engaged in business within
this State to sell any article or product at less than the cost
thereof to such vendor, or to give away any article or product, for
the purpose of injuring competitors or destroying competition.

17044. It is unlawful for any person engaged in business within
this State to sell or use any article or product as a "loss leader"
as defined in Section 17030 of this chapter.

17045. The secret payment or allowance of rebates, refunds,
commissions, or unearned discounts, whether in the form of money or
otherwise, or secretly extending to certain purchasers special
services or privileges not extended to all purchasers purchasing upon
like terms and conditions, to the injury of a competitor and where
such payment or allowance tends to destroy competition, is unlawful.

17046. It is unlawful for any person to use any threat,
intimidation, or boycott, to effectuate any violation of this
chapter.

17047. It is unlawful for any manufacturer, wholesaler,
distributor, jobber, contractor, broker, retailer, or other vendor,
or any agent of any such person, to solicit any violation of this
chapter.

17048. It is unlawful for any manufacturer, wholesaler,
distributor, jobber, contractor, broker, retailer, or other vendor,
or any agent of any such person, jointly to participate or collude
with any other such person in the violation of this chapter.

17048.5. It is unlawful for any manufacturer, wholesaler,
distributor, jobber, contractor, broker, retailer, or other vendor,
or any agent of any such person, to enter into a contract with any
service or repair agency for the performance of warranty service and
repair for products manufactured, distributed, or sold by such
person, below the cost to such service or repair agency of performing
the warranty service or repair.

17049. The prohibitions of this chapter against locality
discrimination and sales below cost embrace any scheme of special
rebates, collateral contracts or any device of any nature whereby
such discrimination or sale below cost is in substance or fact
effected in violation of the spirit and intent of this chapter.

17050. The prohibitions of this chapter against locality
discriminations, sales below cost, and loss leaders do not apply to
any sale made:
(a) In closing out in good faith the owner's stock or any part
thereof for the purpose of discontinuing his trade in any such
article or product and in the case of the sale of seasonal goods or
to the bona fide sale of perishable goods to prevent loss to the
vendor by spoilage or depreciation; provided, notice is given to the
public thereof.
(b) When the goods are damaged or deteriorated in quality, and
notice is given to the public thereof.
(c) By an officer acting under the orders of any court.
(d) In an endeavor made in good faith to meet the legal prices of
a competitor selling the same article or product, in the same
locality or trade area and in the ordinary channels of trade.
(e) In an endeavor made in good faith by a manufacturer, selling
an article or product of his own manufacture, in a transaction and
sale to a wholesaler or retailer for resale to meet the legal prices
of a competitor selling the same or a similar or comparable article
or product, in the same locality or trade area and in the ordinary
channels of trade.
The notice required to be given under this section shall not be
sufficient unless the subject of such sales is kept separate from
other stocks and clearly and legibly marked with the reason for such
sales, and any advertisement of such goods must indicate the same
facts and the number of items to be sold.

17051. Any contract, express or implied, made by any person, firm,
or corporation in violation of this chapter is an illegal contract
and no recovery thereon shall be had.