PART 2. PRESERVATION AND REGULATION OF COMPETITION [16600. - 17365.]

Part 2 added by Stats. 1941, Ch. 526.

§§ 16600–17365 · 126 sections

1. CHAPTER 1. Contracts in Restraint of Trade §§ 16600–16608 · 12 sections

   • § 16600 (a) Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to…
   • § 16600.1 (a) It shall be unlawful to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that does not…
   • § 16600.5 (a) Any contract that is void under this chapter is unenforceable regardless of where and when the contract was signed. (b) An employer or former employer…
   • § 16601 Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her ownership interest in…
   • § 16602 (a) Any partner may, upon or in anticipation of any of the circumstances described in subdivision (b), agree that he or she will not carry on a similar…
   • § 16602.5 Any member may, upon or in anticipation of a dissolution of, or the termination of his or her interest in, a limited liability company (including a series of a…
   • § 16603 Every person who, as a condition to a sale or consignment of any magazine, book, or other publication requires that the purchaser or consignee purchase or…
   • § 16604 Every person who, as a condition to a sale or consignment of any magazine, book, or other publication, requires that the purchaser or consignee purchase or…
   • § 16605 Every person engaged in the business of distribution of books, magazines or publications of any kind to retail dealers shall remove from the possession of a…
   • § 16606 The customer list, including the names, addresses, and identity of customers, of a telephone answering service shall constitute a trade secret and confidential…
   • § 16607 (a) Except as provided in subdivision (b), the customer list, including the names, addresses and identity of all employer customers who have listed job orders…
   • § 16608 (a) For purposes of this section, the following definitions apply: (1) “Contract” includes a promise, undertaking, contract, or agreement, whether written or…
2. CHAPTER 2. Combinations in Restraint of Trade §§ 16700–16770 · 33 sections

   1. ARTICLE 1. General Provisions §§ 16700–16703 · 4 sections

      • § 16700 The provisions of this chapter are cumulative of each other and of any other provision of law relating to the same subject in effect May 22, 1907.
      • § 16701 Section 24 of this code shall not determine the separability of the provisions of this chapter, one from another. Such separability shall be determined by…
      • § 16702 As used in this chapter “person” or “persons” includes corporations, firms, partnerships and associations existing under or authorized by the laws of this…
      • § 16703 Within the meaning of this chapter, labor, whether skilled or unskilled, is not a commodity.
   2. ARTICLE 2. Prohibited Restraints on Competition §§ 16720–16729 · 10 sections

      • § 16720 A trust is a combination of capital, skill or acts by two or more persons for any of the following purposes: (a) To create or carry out restrictions in trade…
      • § 16721 Recognizing that the California Constitution prohibits a person from being disqualified from entering or pursuing a business, profession, vocation, or…
      • § 16721.5 (a) It is an unlawful trust and an unlawful restraint of trade for a person to do the following: (1) Grant or accept a letter of credit, or other document that…
      • § 16721.6 It is the intent of the Legislature that Sections 16721 and 16721.5 be interpreted and applied so as not to conflict with federal law with respect to…
      • § 16722 Any contract or agreement in violation of this chapter is absolutely void and is not enforceable at law or in equity.
      • § 16725 It is not unlawful to enter into agreements or form associations or combinations, the purpose and effect of which is to promote, encourage or increase…
      • § 16726 Except as provided in this chapter, every trust is unlawful, against public policy and void.
      • § 16727 It shall be unlawful for any person to lease or make a sale or contract for the sale of goods, merchandise, machinery, supplies, commodities for use within the…
      • § 16728 (a) Notwithstanding any other provision of law, motor carriers of property, as defined in Section 34601 of the Vehicle Code, may voluntarily elect to…
      • § 16729 (a) It shall be unlawful for a person to use or distribute a common pricing algorithm as part of a contract, combination in the form of a trust, or conspiracy…
   3. ARTICLE 3. Enforcement §§ 16750–16762 · 18 sections

      • § 16750 (a) Any person who is injured in his or her business or property by reason of anything forbidden or declared unlawful by this chapter, may sue therefor in any…
      • § 16750.1 Any civil action to enforce any cause of action for a violation of this chapter shall be commenced within four years after the cause of action accrued. No…
      • § 16750.2 Any person, other than the Attorney General or a district attorney, who commences, by writ or appeal, any proceeding in the Supreme Court of California or a…
      • § 16751 Whenever it appears to the court before which any proceedings under this chapter are pending that the ends of justice require that other parties shall be…
      • § 16752 Upon a violation of this chapter by any corporation or association the Attorney General or the district attorney of the proper county may institute proper…
      • § 16753 Every foreign corporation or association, exercising any of the powers, franchises or functions of a corporation in this state, which violates this chapter, is…
      • § 16754 The Attorney General, or the district attorney of any county, subject to the notice requirements of subdivision (g) of Section 16750, shall initiate civil…
      • § 16754.5 In any civil action brought by the Attorney General or a district attorney under this chapter, the court may, in addition to granting such prohibitory…
      • § 16755 (a) Any violation of this chapter is a conspiracy against trade, and any person who engages in any such conspiracy or takes part therein, or aids or advises in…
      • § 16755.1 (a) A civil penalty of not more than one million dollars ($1,000,000) shall be assessed and recovered in any civil action brought by the Attorney General or…
      • § 16756 In any indictment, information or complaint for any offense named in this chapter, it is sufficient to state the purpose or effects of the trust or…
      • § 16756.1 Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the…
      • § 16757 (a) In prosecutions under this chapter, it is sufficient to prove that a trust or combination exists, and that the defendant belonged to it, or acted for or in…
      • § 16758 In any action or proceeding brought by the Attorney General or any district attorney for the violation of this chapter no person shall be excused from…
      • § 16759 (a) All those powers granted to the Attorney General as a head of a department under Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of…
      • § 16760 (a) (1) The Attorney General may bring a civil action in the name of the people of the State of California, as parens patriae on behalf of natural persons…
      • § 16761 The court may award, pursuant to a motion by a person who has recovered damages pursuant to Section 16750, or by the Attorney General who has secured monetary…
      • § 16762 Unless otherwise expressly provided, the remedies or penalties provided by this chapter are cumulative to each other and to the remedies or penalties available…
   4. ARTICLE 4. Health Care Services § 16770 · 1 section

      • § 16770 (a) It is the intent of the Legislature to ensure that the citizens of this state receive high-quality health care coverage in the most efficient and…
3. CHAPTER 2.5. Combinations to Obstruct Sales of Livestock §§ 16800–16804 · 5 sections

   • § 16800 It is unlawful for any two or more persons, or corporations, to combine or agree together to do any act which will, in any respect, prevent any person from…
   • § 16801 It is unlawful for any corporation organized under the laws of this State, or the board of directors, trustees, stockholders, agents, or officers of any…
   • § 16802 No trust, combination, or conspiracy shall be organized or exist in this State to prevent any person or corporation from selling livestock on commission at…
   • § 16803 Any person who, directly or indirectly, is a party to any combination, conspiracy, or association, which attempts, directly or indirectly, to prevent any other…
   • § 16804 A violation of any provision of this chapter is a misdemeanor punishable by a fine of not less than five hundred dollars ($500) and not more than five thousand…
4. CHAPTER 4. Unfair Trade Practices §§ 17000–17101 · 53 sections

   1. ARTICLE 1. General Provisions §§ 17000–17002 · 3 sections

      • § 17000 This chapter may be cited as the Unfair Practices Act.
      • § 17001 The Legislature declares that the purpose of this chapter is to safeguard the public against the creation or perpetuation of monopolies and to foster and…
      • § 17002 This chapter shall be liberally construed that its beneficial purposes may be subserved.
   2. ARTICLE 2. Definitions §§ 17020–17031 · 14 sections

      • § 17020 The definitions in this article shall be used in construing this chapter.
      • § 17021 “Person” includes any person, firm, association, organization, partnership, business trust, company, corporation or municipal or other public corporation.
      • § 17022 “Sell” includes selling, offering for sale or advertising for sale.
      • § 17023 “Give” includes giving, offering to give or advertising the intent to give.
      • § 17024 “Article or product” includes any article, product, commodity, thing of value, service or output of a service trade. Motion picture films when licensed for…
      • § 17025 “Vendor” includes any person who performs work upon, renovates, alters or improves any personal property belonging to another person.
      • § 17026 “Cost” as applied to production includes the cost of raw materials, labor and all overhead expenses of the producer. “Cost” as applied to distribution means…
      • § 17026.1 (a) (1) Notwithstanding the provisions of Section 17026, commissions or rebates regularly earned by the retailers of cellular telephones may be used to reduce…
      • § 17026.5 Notwithstanding the provisions of Section 17026, regular term discounts granted to distributors by manufacturers of cigarettes for cash payment customarily…
      • § 17027 In establishing the cost of a given article or product to the distributor and vendor, the invoice cost of the article or product purchased at a forced,…
      • § 17028 “Ordinary channels of trade” means those ordinary, regular and daily transactions in the mercantile trade whereby title to an article or product, in no way…
      • § 17029 “Cost of doing business” or “overhead expense” means all costs of doing business incurred in the conduct of the business and shall include without limitation…
      • § 17030 “Loss leader” means any article or product sold at less than cost: (a) Where the purpose is to induce, promote or encourage the purchase of other merchandise;…
      • § 17031 Locality discrimination means a discrimination between different sections, communities or cities or portions thereof, or between different locations in such…
   3. ARTICLE 3. Offenses Against the Chapter §§ 17040–17051 · 13 sections

      • § 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…
      • § 17041 Nothing in this chapter prohibits locality discriminations which make allowances for differences, if any, in the grade, quality or quantity when based and…
      • § 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,…
      • § 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…
      • § 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…
      • § 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…
      • § 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…
      • § 17048 It is unlawful for any manufacturer, wholesaler, distributor, jobber, contractor, broker, retailer, or other vendor, or any agent of any such person, jointly…
      • § 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…
      • § 17049 The prohibitions of this chapter against locality discrimination and sales below cost embrace any scheme of special rebates, collateral contracts or any device…
      • § 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…
      • § 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…
   4. ARTICLE 4. Civil Liability §§ 17070–17087 · 19 sections

      • § 17070 Any person or trade association may bring an action to enjoin and restrain any violation of this chapter and, in addition thereto, for the recovery of damages.
      • § 17071 In all actions brought under this chapter proof of one or more acts of selling or giving away any article or product below cost or at discriminatory prices,…
      • § 17071.5 In all actions brought under this chapter proof of limitation of the quantity of any article or product sold or offered for sale to any one customer to a…
      • § 17072 Where a particular trade or industry, of which a person complained against is a member, has an established cost survey for the locality and vicinity in which…
      • § 17073 Proof of average overall cost of doing business for any particular inventory period when added to the cost of production of each article or product, as to a…
      • § 17074 Proof of transportation tariffs when fixed and approved by the Public Utilities Commission of the State of California is presumptive evidence of delivery cost.
      • § 17075 In any action where it is alleged and shown that the person complained against is selling below his cost of doing business, and such person is including labor…
      • § 17076 In any action brought under this chapter, where persons are employed or performing services for any person or in the conduct of the business wherein such…
      • § 17077 In any action or prosecution for sales below cost in violation of this chapter, if the defendant acquires his raw materials for a consideration not wholly or…
      • § 17078 If it appears to the court upon any application for a temporary restraining order, or upon the hearing of any order to show cause why a preliminary injunction…
      • § 17079 The court may, in its discretion, include in any injunction against a violation of this chapter such other restraint as it may deem expedient in order to deter…
      • § 17080 Any injunction against a violation of this chapter, whether interim or final, shall cover every article or product and not merely the particular article or…
      • § 17081 It is not necessary for the plaintiff, in any action under this chapter, to provide or file any undertaking or bond for the issuance of any interim or final…
      • § 17082 In any action under this chapter, it is not necessary to allege or prove actual damages or the threat thereof, or actual injury or the threat thereof, to the…
      • § 17083 The testimony of any witness in any action brought under this chapter may be taken by deposition. The provisions of Chapter 3 (commencing with Section 2002) of…
      • § 17084 Any party to any action brought under this chapter may, upon notice, apply to the court in which the action is pending, or to any judge thereof, for an order…
      • § 17085 If, at any time while any action for a violation of this chapter is pending, it appears to the court that an extensive examination of books, papers, records,…
      • § 17086 No information obtained under this article, or under Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure, may be used against…
      • § 17087 In any action or proceeding, civil or criminal, brought by the Attorney General or any district attorney for the violation of this chapter, no person shall be…
   5. ARTICLE 5. Liability of Agents §§ 17095–17096 · 2 sections

      • § 17095 Any person, who, either as director, officer or agent of any firm or corporation or as agent of any person, violating the provisions of this chapter, assists…
      • § 17096 In any injunction proceeding against any person as officer, director or agent, it is sufficient to allege and prove the unlawful intent of the person, firm or…
   6. ARTICLE 6. Penal Provisions §§ 17100–17101 · 2 sections

      • § 17100 Any person, whether as principal, agent, officer or director, for himself, or for another person, or for any firm or corporation, or any corporation, who or…
      • § 17101 In the prosecution of any person as officer, director or agent, it is sufficient to allege and prove the unlawful intent of the person, firm or corporation for…
5. CHAPTER 5. Enforcement §§ 17200–17210 · 14 sections

   • § 17200 As used in this chapter, unfair competition shall mean and include any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or…
   • § 17201 As used in this chapter, the term person shall mean and include natural persons, corporations, firms, partnerships, joint stock companies, associations and…
   • § 17201.5 As used in this chapter: (a) “Board within the Department of Consumer Affairs” includes any commission, bureau, division, or other similarly constituted agency…
   • § 17202 Notwithstanding Section 3369 of the Civil Code, specific or preventive relief may be granted to enforce a penalty, forfeiture, or penal law in a case of unfair…
   • § 17203 Injunctive Relief—Court Orders Any person who engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court of competent…
   • § 17204 Actions for Injunctions by Attorney General, District Attorney, County Counsel, and City Attorneys Actions for relief pursuant to this chapter shall be…
   • § 17205 Unless otherwise expressly provided, the remedies or penalties provided by this chapter are cumulative to each other and to the remedies or penalties available…
   • § 17206 Civil Penalty for Violation of Chapter (a) Any person who engages, has engaged, or proposes to engage in unfair competition shall be liable for a civil penalty…
   • § 17206.1 (a) (1) In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, and the act or acts of unfair…
   • § 17206.2 (a) (1) In addition to any liability for a civil penalty pursuant to Section 17206, a person who violates this chapter, if the act or acts of unfair…
   • § 17207 (a) Any person who intentionally violates any injunction prohibiting unfair competition issued pursuant to Section 17203 shall be liable for a civil penalty…
   • § 17208 Any action to enforce any cause of action pursuant to this chapter shall be commenced within four years after the cause of action accrued. No cause of action…
   • § 17209 If a violation of this chapter is alleged or the application or construction of this chapter is in issue in any proceeding in the Supreme Court of California,…
   • § 17210 (a) For purposes of this section, “hotel” means any hotel, motel, bed and breakfast inn, or other similar transient lodging establishment, but it does not…
6. CHAPTER 6.5. Reassignments §§ 17350–17351 · 2 sections

   • § 17350 With respect to contracts entered into on or after the effective date of this chapter, no financial institution shall enter into a contract which provides for…
   • § 17351 For the purposes of this chapter: (a) “Financial institution” means a bank, savings and loan association, or credit union chartered under the laws of this…
7. CHAPTER 7. Sales of Telephone and Other Communications Equipment §§ 17360–17365 · 7 sections

   • § 17360 As used in this chapter, “person” includes an individual, partnership, firm, association, or corporation.
   • § 17361 Any person offering for sale or selling telephone handsets or keysets or private branch exchanges or private automatic branch exchanges of not more than…
   • § 17362 A retailer of telephone equipment shall give clear and conspicuous notice, both on the sale premises and in advertising and catalogs for telephone equipment,…
   • § 17363 Notwithstanding any other provision of this chapter, Sections 17361 and 17362 do not apply to any of the following: (a) Institutional advertising directed to a…
   • § 17363.5 Any person advertising or offering for sale automatic dialing-announcing devices, as defined in Section 2871 of the Public Utilities Code, shall specify on all…
   • § 17364 Every failure to comply with any provision of this chapter constitutes unfair competition and shall be enforced under Chapter 5 (commencing with Section 17200).
   • § 17365 This chapter shall become operative on November 1, 1983.