{"id":1848,"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=1848"},"modified":"2022-05-09T16:29:58","modified_gmt":"2022-05-09T16:29:58","slug":"caci-3412-rule-of-reason-market-power-explained","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3412-rule-of-reason-market-power-explained\/","title":{"rendered":"CACI 3412 Rule of Reason\u2014\u201cMarket Power\u201d Explained"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv14kco7-01827f8f96846a678d1d8d26fdb7466f\">\n#top .av-special-heading.av-kv14kco7-01827f8f96846a678d1d8d26fdb7466f{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv14kco7-01827f8f96846a678d1d8d26fdb7466f .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv14kco7-01827f8f96846a678d1d8d26fdb7466f .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv14kco7-01827f8f96846a678d1d8d26fdb7466f 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 3412 Rule of Reason\u2014<span class='special_amp'>\u201c<\/span>Market Power<span class='special_amp'>\u201d<\/span> Explained<\/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 .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchsubmit_wrapper{\nborder-radius:0px 0px 0px 0px;\n}\n.ajax_search_response.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7{\npadding:0px 0px 0px 0px;\nmargin:0px 0px 0px 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-kv14lpmd-1a89402423662769859e27f58ea5d3d3\">\n#top .av_textblock_section.av-kv14lpmd-1a89402423662769859e27f58ea5d3d3 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv14lpmd-1a89402423662769859e27f58ea5d3d3 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3412\u00a0Rule of Reason\u2014\u201cMarket Power\u201d Explained<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">Market power is the ability to increase prices or reduce output without losing market share. The higher a seller\u2019s market share, the more likely it has market power.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">In deciding whether a seller has market power, you should consider how difficult it is for a potential competitor to successfully enter the market. The more difficult it is to successfully enter a market, the more likely a seller has market power within that market. Market power is less likely to exist if it is not difficult for potential competitors to enter a market successfully.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">Each market has two components: a product market and a geographic market. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/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>See instructions that follow explaining the concepts of product market and geographic market:\u00a0CACI Nos.\u20023413,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Rule of Reason\u2014\u201cProduct Market\u201d Explained,<\/span>\u00a0and 3414,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Rule of Reason\u2014\u201cGeographic Market\u201d Explained. <br class=\"avia-permanent-lb\" \/><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\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cProving that a restraint has anticompetitive effects often requires the plaintiff to \u2018\u2009\u201cdelineate a relevant market and show that the defendant plays enough of a role in that market to impair competition significantly,\u201d\u2009\u2019 i.e., has market power.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">In re Cipro Cases I &amp; II<\/span>\u00a0(2015) 61 Cal.4th 116, 157 [187 Cal.Rptr.3d 632, 348 P.3d 845].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018To meet his initial burden in establishing that the practice is an unreasonable restraint of trade, plaintiff must show that the activity is the type that restrains trade and that the restraint is likely to be of significant magnitude\u2009\u2026\u2009. Ordinarily, a plaintiff to do this must delineate a relevant market and show that the defendant plays enough of a role in that market to impair competition significantly.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Roth v. Rhodes<\/span>\u00a0(1994) 25 Cal.App.4th 530, 542 [30 Cal.Rptr.2d 706], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cAs a practical matter, market power is usually equated with market share. \u2018Since market power can rarely be measured directly by the methods of litigation, it is normally inferred from possession of a substantial percentage of the sales in a market carefully defined in terms of both product and geography.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Redwood Theatres, Inc. v. Festival Enterprises, Inc.<\/span>\u00a0(1988) 200 Cal.App.3d 687, 704 [248 Cal.Rptr. 189], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cBy reducing the substitutability of products, a high level of product differentiation results in relative inelasticity of cross-product demand. This inelasticity creates opportunities for suppliers to manipulate the price and quantity of goods sold or to entrench their market position by creating barriers to entry in a market.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Redwood Theatres, Inc., supra,<\/span>\u00a0200 Cal.App.3d at pp. 706\u2013707, footnote 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>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\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\u2009565.74\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-qtm88-f4cc6d9bcaa78bcd042e0e53bc4b29ca 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-5eczuw-17973b92e0c04a517f01c18be8354a44\">\n#top .av_textblock_section.av-5eczuw-17973b92e0c04a517f01c18be8354a44 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5eczuw-17973b92e0c04a517f01c18be8354a44 '   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-1848","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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