California. Statutory Language

California Statute 6-77

CALIFORNIA STATUTE

CARTWRIGHT ACT

CAL. BUS. & PROF. CODE §§ 16700 to 16770

Article 1. General Provisions

§ 16700. Cumulative provisions

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. Separability; combination to reduce price

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 whether the

provisions of Chapter 530 of the Statutes of 1907 and the provisions of Chapter 362

of the Statutes of 1909 are separable among themselves and as to each other.

If the words “or reduce” (following the word “increase”) were not effectively

deleted from Subdivision 2 of Section 1 of Chapter 530 of the Statutes of 1907 by

Section 1 of Chapter 362 of the Statutes of 1909, a combination of capital, skill or

acts by two or more persons for the purpose of reducing the price of merchandise or

of any commodity is a trust.

§ 16702. Person

As used in this chapter “person” or “persons” includes corporations, firms,

partnerships and associations existing under or authorized by the laws of this State or

any other State, or any foreign country.

§ 16703. Exclusion of labor

Within the meaning of this chapter, labor, whether skilled or unskilled, is not a

commodity.

Article 2. Prohibited Restraints on Competition

§ 16720. Trust

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 or commerce.

(b) To limit or reduce the production, or increase the price of merchandise or

of any commodity.

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(c) To prevent competition in manufacturing, making, transportation, sale or

purchase of merchandise, produce or any commodity.

(d) To fix at any standard or figure, whereby its price to the public or

consumer shall be in any manner controlled or established, any article or commodity

of merchandise, produce or commerce intended for sale, barter, use or consumption

in this State.

(e) To make or enter into or execute or carry out any contracts, obligations or

agreements of any kind or description, by which they do all or any or any

combination of the following:

(1) Bind themselves not to sell, dispose of or transport any article or

any commodity or any article of trade, use, merchandise, commerce or consumption

below a common standard figure, or fixed value.

(2) Agree in any manner to keep the price of such article, commodity or

transportation at a fixed or graduated figure.

(3) Establish or settle the price of any article, commodity or

transportation between them or themselves and others, so as directly or indirectly to

preclude a free and unrestricted competition among themselves, or any purchasers or

consumers in the sale or transportation of any such article or commodity.

(4) Agree to pool, combine or directly or indirectly unite any interests

that they may have connected with the sale or transportation of any such article or

commodity, that its price might in any manner be affected.

§ 16721. Exclusion of person from business transaction on basis of policy

in writing imposed by third party requiring sex or other

discrimination

Recognizing that the California Constitution prohibits a person from being

disqualified from entering or pursuing a business, profession, vocation, or

employment because of sex, race, creed, color, or national or ethnic origin, and

guarantees the free exercise and enjoyment of religion without discrimination or

preference; and recognizing that these and other basic, fundamental constitutional

principles are directly affected and denigrated by certain ongoing practices in the

business and commercial world, it is necessary that provisions protecting and

enhancing a person’s right to enter or pursue business and to freely exercise and

enjoy religion, consistent with law, be established.

(a) No person within the jurisdiction of this state shall be excluded from a

business transaction on the basis of a policy expressed in any document or writing

and imposed by a third party where that policy requires discrimination against that

person on the basis of any characteristic listed or defined in subdivision (b) or (e) of

Section 51 of the Civil Code or on the basis that the person conducts or has

conducted business in a particular location.

(b) No person within the jurisdiction of this state shall require another person

to be excluded, or be required to exclude anothe r person, from a business transaction

on the basis of a policy expressed in any document or writing that requires

discrimination against that other person on the basis of any characteristic listed or

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defined in subdivision (b) or (e) of Section 51 of the Civil Code or on the basis that

the person conducts or has conducted business in a particular location.

(c) Any violation of any provision of this section is a conspiracy against

trade.

(d) Nothing in this section shall be construed to prohibit any person, on this

basis of his or her individual ideology or preferences, from doing business or

refusing to do business with any other person consistent with law.

§ 16721.5. Letter of credit or contract for goods or services; negotiation

relative to provision requiring sex or other discrimination;

exceptions

(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 evidences

the transfer of funds or credit, or enter into a contract for the exchange of goods or

services, if the letter of credit, contract, or other document contains a provision that

requires a person to discriminate against, or to certify that he, she, or it has not dealt

with, another person on the basis of any characteristic listed or defined in subdivision

(b) or (e) of Section 51 of the Civil Code, or on the basis of a person’s lawful

business associations.

(2) To refuse to grant or accept a letter of credit, or other document that

evidences the transfer of funds or credit, or to refuse to enter into a contract for the

exchange of goods or services, on the ground that the letter, contract, or document

does not contain a discriminatory provision or certification.

(b) This section shall not apply to a letter of credit, contract, or other

document that contains a provision pertaining to a labor dispute or an unfair labor

practice if the other provisions of that letter of credit, contract, or other document

otherwise do not violate this section.

(c) For purposes of this section, the prohibition against discrimination on the

basis of a person’s business associations does not include the requiring of association

with particular employment or a particular group as a prerequisite to obtaining group

rates or discounts on insurance, recreational activities, or other similar benefits.

(d) For purposes of this section, “person” shall include, but not be limited to,

individuals, firms, partnerships, associations, corporations, and governmental

agencies.

§ 16721.6. Interpretation and application

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 transactions in the

interstate or foreign commerce of the United States to the extent, if any, not

preempted by the Export Administration Act of 1969 as amended (50 U.S.C.App.

Sec. 2401 and following) and any regulations promulgated thereunder.