{"id":1839,"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=1839"},"modified":"2022-05-09T16:20:40","modified_gmt":"2022-05-09T16:20:40","slug":"caci-3401-horizontal-restraints-use-for-direct-competitors-allocation-of-trade-or-commerce-essential-factual-elements","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3401-horizontal-restraints-use-for-direct-competitors-allocation-of-trade-or-commerce-essential-factual-elements\/","title":{"rendered":"CACI 3401 Horizontal Restraints (Use for Direct Competitors)\u2014Allocation of Trade or Commerce\u2014Essential Factual Elements"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv13pr8s-0e30880efe6b7c95e0fa8224d09c2e7c\">\n#top .av-special-heading.av-kv13pr8s-0e30880efe6b7c95e0fa8224d09c2e7c{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv13pr8s-0e30880efe6b7c95e0fa8224d09c2e7c .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv13pr8s-0e30880efe6b7c95e0fa8224d09c2e7c .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv13pr8s-0e30880efe6b7c95e0fa8224d09c2e7c 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 3401 Horizontal Restraints (Use for Direct Competitors)\u2014Allocation of Trade or Commerce\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  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0px;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7  avia-builder-el-2  el_after_av_hr  el_before_av_textblock '><search><form action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search 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-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-kv13rgm2-8eb6eecf8ea3dbfd3b9c43cf58b38f5a\">\n#top .av_textblock_section.av-kv13rgm2-8eb6eecf8ea3dbfd3b9c43cf58b38f5a .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv13rgm2-8eb6eecf8ea3dbfd3b9c43cf58b38f5a '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3401\u00a0Horizontal Restraints (Use for Direct Competitors)\u2014Allocation of Trade or Commerce\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 allocate or divide [customers\/territories\/products]. An agreement to allocate [customers\/territories\/products] is an agreement between two or more competitors not to compete [for the business of particular customers\/with each other in particular territories\/in the sale of a particular product]. 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<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] were or are competitors in the same or related markets;<\/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 [<\/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 alleged coparticipant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] agreed to allocate or divide [customers\/territories\/products];<\/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 [<\/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\">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 defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s [and [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of alleged coparticipant<\/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 appropriate bracketed option(s) should be selected and the balance deleted, depending on the specific facts. <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\">\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[B]usinesses may not engage in a horizontal allocation of markets, with would-be competitors dividing up territories or customers. Such allocations afford each participant an \u2018enclave \u2026\u2009, free from the danger of outside incursions,\u2019 in which to exercise monopoly power and extract monopoly premiums.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">In re Cipro Cases I &amp; II<\/span>\u00a0(2015) 61 Cal.4th 116, 148 [187 Cal.Rptr.3d 632, 348 P.3d 845], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is settled that distributors cannot lawfully agree to divide territories or customers. Such conduct is sometimes called a \u2018horizontal restraint,\u2019 and is a per se violation of the Sherman Act.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Guild Wineries &amp; Distilleries v. J. Sosnick and Son<\/span>\u00a0(1980) 102 Cal.App.3d 627, 633 [162 Cal.Rptr. 87], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018One of the classic examples of a per se violation \u2026 is an agreement between competitors at the same level of the market structure to allocate territories in order to minimize competition\u2009\u2026\u2009. This Court has reiterated time and time again that \u201c[h]orizontal territorial limitations \u2026 are naked restraints of trade with no purpose except stifling of competition.\u201d Such limitations are per se violations of the Sherman Act.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Palmer v. BRG of Georgia, Inc.<\/span>\u00a0(1990) 498 U.S. 46, 49 [111 S.Ct. 401, 112 L.Ed.2d 349], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cTwo forms of conspiracy may be used to establish a violation of the antitrust laws: a horizontal restraint, consisting of a collaboration among competitors; or a vertical restraint, based upon an agreement between business entities occupying different levels of the marketing chain.\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 [195 Cal.Rptr. 211], 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\">\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].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Business and Professions Code section 16750(a)\u00a0confers a private right of action for treble damages and attorneys fees on \u201c[a]ny person who is injured in his business or property by reason of anything forbidden or declared unlawful by this chapter.\u201d<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe Cartwright Act prohibits every trust, defined as \u2018a combination of capital, skill or acts by two or more persons\u2019 for specified anticompetitive purposes. The federal Sherman Act prohibits every \u2018contract, combination \u2026 or conspiracy, in restraint of trade.\u2019 The similar language of the two acts reflects their common objective to protect and promote competition. Since the Cartwright Act and the federal Sherman Act share similar language and objectives, California courts often look to federal precedents under the Sherman Act for guidance.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Chavez v. Whirlpool Corp.<\/span>\u00a0(2001) 93 Cal.App.4th 363, 369 [113 Cal.Rptr.2d 175], internal citations omitted.) <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[2] (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[3]\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\u00a0(Matthew Bender)<\/div>\n<div>1\u00a0Matthew Bender Practice Guide: California Unfair Competition and Business Torts, Ch. 1,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Elements of Unfair Competition and Business Torts Causes of Action<\/span>, 1.05[4][b]<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-89frtb-1410a8a19e460b8e519c0ac5f615e1ca 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-57ixtr-fc58698f327dcc196647cbd26c59d150\">\n#top .av_textblock_section.av-57ixtr-fc58698f327dcc196647cbd26c59d150 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-57ixtr-fc58698f327dcc196647cbd26c59d150 '   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-1839","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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