SECTIONS 21200-21203 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 21200-21203

21200. It is unlawful for any refiner, distributor, manufacturer,
or transporter of motor vehicle fuels or oils engaged in business in
this state, either directly or indirectly, to discriminate in price
between different purchasers of motor vehicle fuels or oils of like
grade and quality, where the effect of such discrimination is to
lessen competition, or to injure, destroy, or prevent competition
with any person who either grants or knowingly receives the benefit
of such discrimination, or with customers of either of them.
Upon proof being made, at any hearing on a complaint under this
section, that there has been such discrimination in price, the burden
of rebutting the prima facie case thus made by showing justification
shall be upon the person charged with a violation of this section.
Nothing herein contained shall prevent a seller rebutting the prima
facie case thus made by showing that his lower price to any purchaser
or purchasers was made in good faith to meet an equally low price of
a competitor and was also offered to any other of his purchasers in
competition with the purchaser or purchasers receiving such lower
price. If such lower price should be incorporated into a term
contract, no such contract shall as to such discriminatory price be
valid for more than one year.
Nothing in this section shall prevent differentials which make
only due allowance for differences in the cost of manufacture,
marketing, transportation, sale, or delivery resulting from the
differing methods or quantities in which such commodities are to such
purchasers sold or delivered.
Nothing in this section shall prevent persons engaged in selling
motor vehicle fuels or oils in this state from selecting their own
customers in bona fide transactions and not in restraint of trade.
Nothing in this section shall prevent price changes from time to
time where in response to changing conditions affecting the market
for, or the marketability of, the products concerned, such as, but
not limited to, actual or imminent deterioration of products,
distress sales under court process, or sales in good faith in
discontinuance of business in the products concerned.
Nothing in this section shall apply to the purchase of motor
vehicle fuels or oils for their own use by state and local agencies
or public utilities.

21201. The provisions of this chapter shall only apply to refiners,
distributors, manufacturers, or transporters of petroleum products
engaged in business in this state whose total production, gasoline
refining capacity or sales volume at the wholesale level is 50,000
barrels a day or more.

21202. Any person injured by any violation of the provisions of
this chapter may bring an action for the recovery of damages.
Judgment may be entered for three times the amount at which the
actual damages are assessed plus reasonable attorney's fees.

21203. The Legislature finds and declares that distribution and
sales of motor vehicle fuels and oils in the State of California
affect the general economy of the state, the public interest and the
public welfare. Competition and freedom from unreasonable
discriminatory practices are essential to the fair and efficient
functioning of a free market economy. Competitive conditions are
rapidly changing with resulting market dislocation. Therefore, it is
further provided that any existing contracts, arrangements, or
agreements with provision for prices not in compliance with this
chapter shall be void on and after the effective date of this chapter
as to such provisions, except for any as may be required to be
extended beyond said date to comply with any applicable federal price
control laws, regulations or orders.