Section § 17040

Explanation

This law makes it illegal for someone involved in making or selling widely-used products to intentionally harm or eliminate a competitor or stop someone from entering the market by unfairly offering different prices in different locations. However, it’s okay to offer competitive prices in good faith, as long as it’s a fair response to another competitor’s pricing.

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.

Section § 17041

Explanation

This law says it's okay for businesses to charge different prices in different locations if the differences are justified by varying costs. These costs could be for making, selling, or delivering the product, or because of transportation expenses based on where the product comes from or is going.

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.

Section § 17042

Explanation

This law allows businesses to choose who they want to sell to and to classify their customers as brokers, jobbers, wholesalers, or retailers. It also permits businesses to charge different prices to customers in these different categories, if they choose.

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

Section § 17043

Explanation

This law makes it illegal for businesses to sell products at a loss or give them away to harm competitors or wipe out competition. Basically, you can't undercut prices to intentionally drive your rivals out of business.

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.

Section § 17044

Explanation

This law makes it illegal for businesses in the state to sell or use a product below its cost with the intention of attracting customers, which is known as a "loss leader."

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.

Section § 17045

Explanation

This law makes it illegal to secretly give special deals or benefits to certain customers if it harms competitors and undermines fair competition. These could include secret rebates, refunds, extra commissions, or other unearned discounts. The aim is to ensure all buyers on similar terms get treated equally, so no unfair competition occurs.

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.

Section § 17046

Explanation
This law makes it illegal for anyone to use threats, intimidation, or boycotts to break any rules in this chapter.
It is unlawful for any person to use any threat, intimidation, or boycott, to effectuate any violation of this chapter.

Section § 17047

Explanation

This law makes it illegal for any business involved in selling goods—whether they're a manufacturer or a retailer—to encourage someone to break any rules outlined in this chapter.

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.

Section § 17048

Explanation

This law makes it illegal for anyone involved in selling or distributing goods, like manufacturers or retailers, to work together with others to break the rules set out in this chapter.

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.

Section § 17048.5

Explanation

This law makes it illegal for any company or person that sells products, like manufacturers or retailers, to have a service or repair business fix their products under warranty for less than it costs the repair business to do the work.

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.

Section § 17049

Explanation

This law prevents businesses from using tricks like special discounts, side deals, or any other strategies to unfairly sell products cheaper than the cost or discriminate based on location, bypassing the law's intent.

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.

Section § 17050

Explanation

This law explains situations where businesses can sell products at discounts that are normally restricted. It allows exceptions for sales when closing a business, selling seasonal or perishable goods, selling damaged items, or when a competitor has similar prices. Court-ordered sales and sales by manufacturers to meet competitors' prices are also exempt. For all these exceptions, sellers must inform the public and clearly mark the discounted items with reasons for the sale.

The prohibitions of this chapter against locality discriminations, sales below cost, and loss leaders do not apply to any sale made:
(a)CA Business & Professions Code § 17050(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)CA Business & Professions Code § 17050(b) When the goods are damaged or deteriorated in quality, and notice is given to the public thereof.
(c)CA Business & Professions Code § 17050(c) By an officer acting under the orders of any court.
(d)CA Business & Professions Code § 17050(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)CA Business & Professions Code § 17050(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.

Section § 17051

Explanation

If someone signs or agrees to a contract that breaks the rules of this chapter, that contract is not legal, and you can't enforce or get anything from it.

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.