{"id":1835,"date":"2021-10-25T03:53:49","date_gmt":"2021-10-25T03:53:49","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1835"},"modified":"2022-05-09T16:23:45","modified_gmt":"2022-05-09T16:23:45","slug":"caci-3405-horizontal-and-vertical-restraints-use-for-direct-competitors-or-supplier-reseller-relations-other-unreasonable-restraint-of-trade-rule-of-reason-essential-factual","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3405-horizontal-and-vertical-restraints-use-for-direct-competitors-or-supplier-reseller-relations-other-unreasonable-restraint-of-trade-rule-of-reason-essential-factual\/","title":{"rendered":"CACI 3405 Horizontal and Vertical Restraints (Use for Direct Competitors or Supplier\/Reseller Relations)\u2014Other Unreasonable Restraint of Trade\u2014Rule of Reason\u2014Essential Factual Elements"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv13yga3-ca544a01d9c392a7e6489c34f9a14878\">\n#top .av-special-heading.av-kv13yga3-ca544a01d9c392a7e6489c34f9a14878{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv13yga3-ca544a01d9c392a7e6489c34f9a14878 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv13yga3-ca544a01d9c392a7e6489c34f9a14878 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv13yga3-ca544a01d9c392a7e6489c34f9a14878 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 3405 Horizontal and Vertical Restraints (Use for Direct Competitors or Supplier\/Reseller Relations)\u2014Other Unreasonable Restraint of Trade\u2014Rule of Reason\u2014Essential Factual Elements<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><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-avia_sc_search-f7f83518637509acfac1c9900b84c1e7\">\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchform_wrapper{\nborder-radius:0px 0px 0px 0px;\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #s.av-input-field{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #searchsubmit{\nborder-radius:0px 0px 0px 0px;\n}\n#top 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page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  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-7g28tn-f36069ab9280094ec291d70dc3ef8369 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-kv140005-7562a241932edc969fd2397fa6d03e4e\">\n#top .av_textblock_section.av-kv140005-7562a241932edc969fd2397fa6d03e4e .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv140005-7562a241932edc969fd2397fa6d03e4e '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3405\u00a0Horizontal and Vertical Restraints (Use for Direct Competitors or Supplier\/Reseller Relations)\u2014Other Unreasonable Restraint of Trade\u2014Rule of Reason\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\">] agreed to [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert unreasonable restraint of trade<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]. 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\">] [and [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of alleged coparticipant[s]<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]] agreed to [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">describe conduct constituting an unreasonable restraint of trade<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/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\">That the purpose or effect of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s conduct was to restrain competition;<\/span><\/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 the anticompetitive effect of the restraint[s] outweighed any beneficial effect on 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>This instruction is intended for actions that are limited only by the bounds of human ingenuity. Any such conduct, if it does not fit into a per se category, is judged under the rule of reason. Thus, the illegality of a termination that results from a buyer\u2019s disobedience with a seller\u2019s exclusive \u201cdealing,\u201d territorial location, or customer restrictions, unless ancillary to price fixing, should be resolved under the rule of reason. For cases involving vertical restraints, see also the vertical restraint instructions contained in this series.<\/p>\n<p>It is possible for a complaint to include both per se and rule of reason claims. Also, per se claims alternatively may be tested under the rule of reason if there is reason to believe that proof of the per se claims may fall short. If either is the case, connecting language between the pertinent instructions should be provided, such as: \u201cIf you find that [<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span>]\u2019s conduct did not amount to an agreement to [<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">specify conduct, e.g., \u201cfix resale prices,\u201d \u201cboycott,\u201d \u201callocate markets\u201d<\/span>], [<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span>] may still prove that the conduct otherwise lessened competition.\u201d<\/p>\n<p>For additional instructions regarding the rule of reason, see\u00a0CACI Nos.\u20023411\u00a0through 3414. <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\">Trusts Unlawful and Void.\u00a0Business and Professions Code section 16726.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTrust\u201d Defined.\u00a0Business and Professions Code section 16720(a).<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Trade Groups Not Unlawful.\u00a0Business and Professions Code section 16725.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe Cartwright Act, like the Sherman Act, prohibits \u2018combinations\u2019 for the purpose of restraining trade. \u2018[A] combination means a concert of action by individuals or entities maintaining separate and independent interests.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Roth v. Rhodes<\/span>\u00a0(1994) 25 Cal.App.4th 530, 543 [30 Cal.Rptr.2d 706], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018Horizontal combinations are cartels or agreements among competitors which restrain competition among enterprises at the same level of distribution. They are ordinarily illegal per se. Vertical restraints are imposed by persons or firms further up the chain of distribution of a specific product (or in rare cases, further down the chain) than the enterprise restrained. Vertical non-price restraints are tested under the rule of reason; that is, the plaintiff must prove that the restraint had an anticompetitive effect in the relevant market in order to prevail.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Exxon Corp. v. Superior Court<\/span>\u00a0(1997) 51 Cal.App.4th 1672, 1680\u20131681 [60 Cal.Rptr.2d 195], internal citations and footnote omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cAlthough the Sherman Act and the Cartwright Act by their express terms forbid all restraints on trade, each has been interpreted to permit by implication those restraints found to be reasonable.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Corwin v. Los Angeles Newspaper Service Bureau, Inc.<\/span>\u00a0(1971) 4 Cal.3d 842, 853 [94 Cal.Rptr. 785, 484 P.2d 953], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTo determine whether the restrictions are reasonable, \u2018the court must ordinarily consider the facts peculiar to the business to which the restraint is applied; its condition before and after the restraint was imposed; the nature of the restraint and its effect, actual or probable. The history of the restraint, the evil believed to exist, the reason for adopting the particular remedy, the purpose or end sought to be obtained, are all relevant facts.\u2019 The court should consider \u2018the percentage of business controlled, the strength of the remaining competition [and] whether the action springs from business requirements or purpose to monopolize \u2026\u2009.\u2019 Whether a restraint of trade is reasonable is a question of fact to be determined at trial.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Corwin, supra,<\/span>\u00a04 Cal.3d at pp. 854\u2013855, internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cGenerally, in determining whether conduct unreasonably restrains trade, \u2018[a] rule of reason analysis requires a determination of whether \u2026 its anti-competitive effects outweigh its pro-competitive effects.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Bert G. Gianelli Distrib. Co. v. Beck &amp; Co.<\/span>\u00a0(1985) 172 Cal.App.3d 1020, 1048 [219 Cal.Rptr. 203], internal citation omitted, overruled on other grounds,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Dore v. Arnold Worldwide, Inc.<\/span>\u00a0(2006) 39 Cal.4th 384, 389 [46 Cal.Rptr.3d 668, 139 P.3d 56].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe alleged antitrust violation need not be the sole or controlling cause of the injury in order to establish proximate cause, but only need be a substantial factor in bringing about the injury.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Saxer v. Philip Morris, Inc.<\/span>\u00a0(1975) 54 Cal.App.3d 7, 23 [126 Cal.Rptr. 327], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe plaintiff in a Cartwright Act proceeding must show that an antitrust violation was the proximate cause of his injuries. The frequently stated \u2018standing to sue\u2019 requirement is merely a rule that an action for violation of the antitrust laws may be maintained only by a party within the \u2018target area\u2019 of the antitrust violation, and not by one incidentally injured thereby. An \u2018antitrust injury\u2019 must be proved; that is, the type of injury the antitrust laws were intended to prevent, and which flows from the invidious conduct which renders defendants\u2019 acts unlawful. Finally, a plaintiff must show an injury within the area of the economy that is endangered by a breakdown of competitive conditions.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Kolling v. Dow Jones &amp; Co.<\/span>\u00a0(1982) 137 Cal.App.3d 709, 723\u2013724 [187 Cal.Rptr. 797], internal citations and footnote omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe exact parameters of \u2018antitrust injury\u2019 under section 16750 have not yet been established through either court decisions or legislation.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Cellular Plus, Inc. v. Superior Court<\/span>\u00a0(1993) 14 Cal.App.4th 1224, 1234 [18 Cal.Rptr.2d 308].) <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\u00a7\u2009602\u2013621<\/div>\n<div>1 Antitrust Laws and Trade Regulation, Ch. 12,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">The Per Se Rule and the Rule of Reason<\/span>, \u00a7\u200912.03 (Matthew Bender)<\/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\u200940.165[2]\u00a0(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>, 5.05,\u00a05.11,\u00a05.17\u20135.22<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b 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-5dfk57-97ed1349ffaa6528ecc6e0559cd712c5\">\n#top .av_textblock_section.av-5dfk57-97ed1349ffaa6528ecc6e0559cd712c5 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5dfk57-97ed1349ffaa6528ecc6e0559cd712c5 '   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-1835","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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