{"id":1787,"date":"2021-10-25T03:53:33","date_gmt":"2021-10-25T03:53:33","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1787"},"modified":"2022-05-09T15:59:10","modified_gmt":"2022-05-09T15:59:10","slug":"caci-3302-loss-leader-sales-essential-factual-elements","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3302-loss-leader-sales-essential-factual-elements\/","title":{"rendered":"CACI 3302 Loss Leader Sales\u2014Essential Factual Elements"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv0txkh4-82a6cad7549b466af81fc281a7fb2fdb\">\n#top .av-special-heading.av-kv0txkh4-82a6cad7549b466af81fc281a7fb2fdb{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv0txkh4-82a6cad7549b466af81fc281a7fb2fdb .av-special-heading-tag 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itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv0tyyh8-820f4898e8166e343ee7ee3d13317ada\">\n#top .av_textblock_section.av-kv0tyyh8-820f4898e8166e343ee7ee3d13317ada .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv0tyyh8-820f4898e8166e343ee7ee3d13317ada '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3302\u00a0Loss Leader Sales\u2014Essential Factual Elements<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] claims that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [offered to sell\/sold\/offered the use of] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">product\/service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] as an unlawful loss leader. To establish this claim, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [offered to sell\/sold\/offered the use of] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">product\/service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] at prices that were below [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] costs;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Insert one or more of the following:<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s purpose was to influence, promote, or encourage the purchase of other merchandise from [him\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it]; [or]]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[That the [offer\/sale] had a tendency or capacity to mislead or deceive purchasers or potential purchasers; [or]]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[That the [offer\/sale] took business away from or otherwise injured competitors;]<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s intent was to injure competitors or destroy competition;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">4.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was harmed; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">5.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s conduct was a substantial factor in causing [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s harm. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New September 2003 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>The word \u201cprice\u201d as used here should be read sufficiently broadly to include \u201cspecial rebates, collateral contracts, or any device of any nature whereby such sale below cost is in substance or fact effected.\u201d (Bus. &amp; Prof. Code, \u00a7\u200917049.) To the extent the circumstances of the case warrant it, the word \u201cprice\u201d in the instruction may be supplemented or supplanted by other price-related terms.<\/p>\n<p>For instructions on \u201ccost,\u201d see\u00a0CACI No.\u20023303,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Definition of \u201cCost\u201d<\/span>;\u00a0CACI No.\u20023304,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Presumptions Concerning Costs\u2014Manufacturer<\/span>;\u00a0CACI No.\u20023305,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Presumptions Concerning Costs\u2014Distributor<\/span>; and\u00a0CACI No.\u20023306,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Methods of Allocating Costs to an Individual Product.<\/span><\/p>\n<p>Business and Professions Code sections 17071\u00a0and\u00a017071.5\u00a0create rebuttable presumptions regarding the purpose or intent to injure competitors or destroy competition. The Supreme Court has observed: \u201cThe obvious and only effect of this provision is to require the defendants to go forward with such proof as would bring them within one of the exceptions or which would negative the prima facie showing of wrongful intent.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">People v. Pay Less Drug Store<\/span>\u00a0(1944) 25 Cal.2d 108, 114 [153 P.2d 9].) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cLoss Leader\u201d Sales Prohibited.\u00a0Business and Professions Code section 17044.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cLoss Leader\u201d Defined.\u00a0Business and Professions Code section 17030.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cArticle or Product\u201d Defined.\u00a0Business and Professions Code section 17024.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Actual Damages or Injury Not Required.\u00a0Business and Professions Code section 17082.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe purpose of the Unfair Practices Act (UPA) is \u2018to safeguard the public against the creation or perpetuation of monopolies and to foster and encourage competition, by prohibiting unfair, dishonest, deceptive, destructive, fraudulent and discriminatory practices by which fair and honest competition is destroyed or prevented.\u2019 It forbids most locality discriminations, the use of loss leaders, gifts, secret rebates, boycotts, and \u2018deceptive, untrue or misleading advertising.\u2019 It also prohibits the sale of goods and services below cost.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Pan Asia Venture Capital Corp. v. Hearst Corp.<\/span>\u00a0(1999) 74 Cal.App.4th 424, 431\u2013432 [88 Cal.Rptr.2d 118], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[N]otwithstanding the absence of any language to this effect in either section 17044 or section 17030, intent to injure competitors or to destroy competition is required for violation of section 17044. In other words, for competition to be unfair under the Act, the person engaging in the challenged practice must possess an intent to injure his competitors or destroy his competition.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Dooley\u2019s Hardware Mart v. Food Giant Markets, Inc.<\/span>\u00a0(1971) 21 Cal.App.3d 513, 517 [98 Cal.Rptr. 543].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWe conclude that to violate sections 17043 and 17044, part of the Unfair Practices Act, which prohibit below-cost sales and loss leaders, a company must act with the purpose, i.e., the desire, of injuring competitors or destroying competition.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Cel-Tech Communications, Inc. v. Los Angeles Cellular Telephone Co.<\/span>\u00a0(1999) 20 Cal.4th 163, 169 [83 Cal.Rptr.2d 548, 973 P.2d 527].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">It has been held by one federal district court interpreting California\u2019s loss leader statute that it applies only to product sales, not giveaways. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Co-Opportunities, Inc. v. National Broadcasting Co., Inc.<\/span>\u00a0(N.D. Cal. 1981) 510 F.Supp. 43, 50.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWhile, similar to other cases, damages cannot be awarded in antitrust cases upon sheer guesswork or speculation, the plaintiff seeking damages for loss of profits is required to establish only with reasonable probability the existence of some causal connection between defendant\u2019s wrongful act and some loss of the anticipated revenue. Once that has been accomplished, the jury will be permitted to act upon probable and inferential proof and to \u2018make a just and reasonable estimate of the damage based on relevant data, and render its verdict accordingly.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Suburban Mobile Homes, Inc. v. AMFAC Communities, Inc.<\/span>\u00a0(1980) 101 Cal.App.3d 532, 545 [161 Cal.Rptr. 811], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">The federal law most comparable to the Unfair Practices Act is the Robinson-Patman Act (15 U.S.C. \u00a7\u200913 et seq.); that act differs substantially from the Unfair Practices Act, however. For a discussion of this subject, see\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Turnbull &amp; Turnbull v. ARA Transportation<\/span>\u00a0(1990) 219 Cal.App.3d 811 [268 Cal.Rptr. 856]. One notable difference is that the Robinson-Patman Act requires at least two actual sales. Thus, mere offers to sell cannot violate that act. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>1 Witkin, Summary of California Law (11th ed. 2017) Contracts, \u00a7\u2009628<\/div>\n<div>3 Levy et al.,\u00a0California Torts, Ch. 40,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraud and Deceit and Other Business Torts<\/span>, \u00a7\u200940.153\u00a0(Matthew Bender)<\/div>\n<div>49\u00a0California Forms of Pleading and Practice, Ch. 565,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>, \u00a7\u2009565.52 (Matthew Bender)<\/div>\n<div>23\u00a0California Points and Authorities, Ch. 235,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Unfair Competition<\/span>, \u00a7\u2009235.22 et seq. (Matthew Bender)<\/div>\n<div>1\u00a0Matthew Bender Practice Guide: California Unfair Competition and Business Torts, Ch. 5,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Antitrust<\/span>, 5.46[4],\u00a05.47[3]<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7zgre3-bcbe9679fe28f4aaa937835b53d8408d hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-55wn0r-cd0df0085914458754563f9465453fce\">\n#top .av_textblock_section.av-55wn0r-cd0df0085914458754563f9465453fce .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-55wn0r-cd0df0085914458754563f9465453fce '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1787","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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