{"id":1836,"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=1836"},"modified":"2022-05-09T16:22:47","modified_gmt":"2022-05-09T16:22:47","slug":"caci-3404-horizontal-restraints-group-boycott-rule-of-reason-essential-factual-elements","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3404-horizontal-restraints-group-boycott-rule-of-reason-essential-factual-elements\/","title":{"rendered":"CACI 3404 Horizontal Restraints\u2014Group Boycott\u2014Rule of Reason\u2014Essential Factual Elements"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv13wiha-f73711dd4e8300bda1424e075f3ccc2c\">\n#top .av-special-heading.av-kv13wiha-f73711dd4e8300bda1424e075f3ccc2c{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv13wiha-f73711dd4e8300bda1424e075f3ccc2c .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv13wiha-f73711dd4e8300bda1424e075f3ccc2c .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv13wiha-f73711dd4e8300bda1424e075f3ccc2c 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 3404 Horizontal Restraints\u2014Group Boycott\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 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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-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-kv13xxwn-0e697128d2e52bc16af383999fdd822c\">\n#top .av_textblock_section.av-kv13xxwn-0e697128d2e52bc16af383999fdd822c .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv13xxwn-0e697128d2e52bc16af383999fdd822c '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3404\u00a0Horizontal Restraints\u2014Group Boycott\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\">describe conduct, e.g., \u201cformulate an arbitrary membership limitation rule with [identify other participant[s]]\u201d<\/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, e.g., \u201cformulate an arbitrary membership limitation rule\u201d<\/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 applies to agreements between competitors that are directly intended to affect competition facing them. In determining whether to give this per se instruction or the rule of reason instructions, it is important whether the challenged combination was horizontal (between competitors), vertical (between sellers and buyers), or some combination of the two. Horizontal combinations are subject to per se instructions; vertical combinations to the rule of reason instructions. Those combinations falling in between must be carefully scrutinized to determine whether their principal purpose is to restrain competition between competitors or to downstream resellers by the seller.<\/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(c).<\/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\">\u201cA group boycott can involve an agreement that a group of buyers will purchase only from a designated seller\u2009\u2026\u2009. [A]n unlawful group boycott requires an express or implicit agreement among competitors to restrict commerce in some manner.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">UAS Management, Inc. v. Mater Misericordiae Hospital<\/span>\u00a0(2008) 169 Cal.App.4th 357, 365\u2013366 [87 Cal.Rptr.3d 81].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is well settled that the antitrust laws do not preclude a trader from unilaterally determining the parties with whom it will deal and the terms on which it will transact business. An antitrust case must be based upon conspiratorial rather than unilateral conduct. Thus, only group boycotts are unlawful under the Sherman and Cartwright Acts.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">G.H.I.I. v. MTS, Inc.<\/span>\u00a0(1983) 147 Cal.App.3d 256, 267\u2013268 [195 Cal.Rptr. 211], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">In\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Marin County Bd. of Realtors v. Palsson<\/span>\u00a0(1976) 16 Cal.3d 920, 931 [130 Cal.Rptr. 1, 549 P.2d 833], the Supreme Court explained that there is a distinction between \u201cdirect boycotts aimed at coercing parties to adopt noncompetitive practices and indirect boycotts which result in refusals to deal only as a by-product of the agreement.\u201d<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Not all group boycotts are evaluated as per se violations: \u201cThis limitation on the per se rule is particularly applicable to trade association agreements not directly aimed at coercing third parties and eliminating competitors. In cases involving such agreements, courts have generally applied the rule of reason test.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Marin County Bd. of Realtors, supra,<\/span>\u00a016 Cal.3d at p. 932.)<\/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 in\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 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>6 Antitrust Laws and Trade Regulation, Ch. 105,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">California<\/span>, \u00a7\u2009105.02[3] (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\u200940.168[5]\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\u2009565.77\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-72a9vw-8e544a15ad0be5c8b6fc742418870db6 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-5s0w6k-2ecf063f1c684561e8b9f11136cb7dba\">\n#top .av_textblock_section.av-5s0w6k-2ecf063f1c684561e8b9f11136cb7dba .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5s0w6k-2ecf063f1c684561e8b9f11136cb7dba '   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-1836","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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