{"id":1844,"date":"2021-10-25T03:54:05","date_gmt":"2021-10-25T03:54:05","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1844"},"modified":"2022-05-09T16:32:46","modified_gmt":"2022-05-09T16:32:46","slug":"caci-3421-tying-products-or-services-essential-factual-elements-bus-prof-code-%c2%a7-16727","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3421-tying-products-or-services-essential-factual-elements-bus-prof-code-%c2%a7-16727\/","title":{"rendered":"CACI 3421 Tying\u2014Products or Services\u2014Essential Factual Elements (Bus. &#038; Prof. Code, \u00a7\u200916727)"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv14rqmi-65657a0a00930c0fffc9b611f7c9f216\">\n#top .av-special-heading.av-kv14rqmi-65657a0a00930c0fffc9b611f7c9f216{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv14rqmi-65657a0a00930c0fffc9b611f7c9f216 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv14rqmi-65657a0a00930c0fffc9b611f7c9f216 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv14rqmi-65657a0a00930c0fffc9b611f7c9f216 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 3421 Tying\u2014Products or Services\u2014Essential Factual Elements (Bus. <span class='special_amp'>&amp;<\/span> Prof. Code, \u00a7\u200916727)<\/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 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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-kv14t6vu-09b78a8d6d761d9090e6452932ff64b5\">\n#top .av_textblock_section.av-kv14t6vu-09b78a8d6d761d9090e6452932ff64b5 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv14t6vu-09b78a8d6d761d9090e6452932ff64b5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3421\u00a0Tying\u2014Products or Services\u2014Essential Factual Elements (Bus. &amp; Prof. Code, \u00a7\u200916727)<\/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 there is an unlawful tying arrangement in which [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">specify the particular product<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is the tying product and [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">specify the particular product or services<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] is the tied product. A \u201ctying arrangement\u201d is the sale of one product, called the \u201ctying product,\u201d where the buyer is required or coerced to also purchase a different, separate product, called the \u201ctied product.\u201d For example, if a supermarket sells flour only if its customers also buy sugar, that supermarket would be engaged in tying. Flour would be the tying product and sugar the tied product.<\/span><\/p>\n<p><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\">tying product<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] and [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tied product or service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] are separate and distinct;<\/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\">] will sell [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tying product<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] only if the buyer also purchases [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tied product or service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">], or that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] sold [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tying product<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] and required or otherwise coerced buyers to [also purchase [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tied product or service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]] [agree not to purchase [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tied product or service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] from any other supplier];<\/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\">insert one or both 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\">[[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] has sufficient economic power in the market for [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tying product<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] to coerce at least some consumers into purchasing [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tied product or service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];] [or]<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[the claimed tying arrangement has restrained competition for a substantial amount of sales, in terms of total dollar volume of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">tied product or service<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]];<\/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 claims under\u00a0Business and Professions Code section 16727, which applies only where the tying product consists of \u201cgoods, merchandise, machinery, supplies, [or] commodities\u201d and the tied product consists of \u201cgoods, merchandise, supplies, commodities, or services.\u201d Section 16727 does not apply if the tying product is land or services, nor does it apply if the tied product is land.<\/p>\n<p>The example given was used in two federal cases,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Northern Pacific Railway Co. v. United States<\/span>\u00a0(1958) 356 U.S. 1, 5\u20136 [78 S.Ct. 514, 2 L.Ed.2d 545]\u00a0and\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Jefferson Parish Hospital District No. 2 v. Hyde<\/span>\u00a0(1984) 466 U.S. 2, 12 [104 S.Ct. 1551, 80 L.Ed.2d 2], but also can help explain the Cartwright Act. The terms \u201cproduct,\u201d \u201csell,\u201d and \u201cpurchase\u201d used in this instruction may need to be modified to reflect the facts of the particular case, since tying arrangements challenged under\u00a0Business and Professions Code section 16720\u00a0may involve services, real property, intangibles, leases, licenses, and the like.<\/p>\n<p>Also, an unlawful tying arrangement may be shown where the buyer agrees not to purchase the tied product or service from any other supplier as a condition of obtaining the tying product. If the tying claim involves such a \u201ctie-out\u201d agreement, this instruction must be modified accordingly. <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\">Covenants Prohibiting Dealing With Competitors Unlawful.\u00a0Business and Professions Code section 16727.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is unlawful under California\u2019s Cartwright Act, as relevant here, for a seller to use its market power in one market to force or coerce a buyer to purchase its product or service in a distinct market in which the seller does not have such market power or to refrain from buying from the seller\u2019s competitor. The result of such coercion is called a tying arrangement, in which the market controlled by the seller consists of sales of the \u2018tying\u2019 product or service, and the market over which derivative power is exercised consists of sales of the \u2018tied\u2019 product or service. Where such an arrangement is found, it is illegal per se; that is, the seller\u2019s justifications for the arrangement are not measured by a rule of reasonableness.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">UAS Management, Inc. v. Mater Misericordiae Hospital<\/span>\u00a0(2008) 169 Cal.App.4th 357, 368\u2013369 [87 Cal.Rptr.3d 81].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he specific elements of an unlawful tying cause of action have been stated as follows: \u2018(1) a tying agreement, arrangement or condition \u2026 whereby the sale of the tying product [or service] was linked to the sale of the tied product or service; (2) the party had sufficient economic power in the tying market to coerce the purchase of the tied product; (3) a substantial amount of sale was effected in the tied product; and (4) the complaining party sustained pecuniary loss as a consequence of the unlawful act.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">UAS Management, Inc., supra<\/span>, 169 Cal.App.4th at p. 369, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he burden of proving an illegal tying arrangement differs somewhat under section 16720 and section 16727. Under section 16727 the plaintiff must establish that the tie-in substantially lessens competition. This standard is met if either the seller enjoys sufficient economic power in the tying product to appreciably restrain competition in the tied product or if a not insubstantial volume of commerce in the tied product is restrained. Under the section 16720 standard, both conditions must be met.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Suburban Mobile Homes v. AMFAC Communities<\/span>\u00a0(1980) 101 Cal.App.3d 532, 549 [161 Cal.Rptr. 811], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cCase law construing\u00a0Business and Professions Code section 16727\u00a0defines a tying arrangement as \u2018an agreement by a party to sell one product but only on the condition that the buyer also purchases a different (or tied) product, or at least agrees that he will not purchase that product from any other supplier.\u2019 Tying arrangements are illegal per se if the party has sufficient economic power and substantially forecloses competition in the relevant market. Even when not per se illegal, a tying arrangement violates the Cartwright Act if it unreasonably restrains trade.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Morrison v. Viacom, Inc.<\/span>\u00a0(1997) 52 Cal.App.4th 1514, 1524 [61 Cal.Rptr.2d 544], 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\u2009105.04 (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[4]\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>, 5.09[4],\u00a05.15,\u00a05.81,\u00a05.82<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-887elg-abb3a4a1a67bb87adfb8e14bd538021d 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-5otd8k-45c7eb6f4425d32773ea66463fe9620a\">\n#top .av_textblock_section.av-5otd8k-45c7eb6f4425d32773ea66463fe9620a .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5otd8k-45c7eb6f4425d32773ea66463fe9620a '   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-1844","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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