California Codes, Business and Professions Code - BPC, Division 7 — General Business Regulations, Part 2 — Preservation and Regulation of Competition, Chapter 4 — Unfair Trade Practices, Article 3 — Offenses Against the Chapter, Section 17040
It is unlawful for any person engaged in the production, manufacture, distribution or sale of any article or product of general use or consumption, with intent to destroy the competition of any regular established dealer in such article or product, or to prevent the competition of any person who in good faith, intends and attempts to become such dealer, to create locality discriminations.
Nothing in this section prohibits the meeting in good faith of a competitive price.
Notes
Prohibits a producer, manufacturer, distributor, or seller of generally used or consumed products from creating locality discriminations with intent to destroy an established dealer’s competition or prevent a good-faith prospective dealer from competing. The prohibition does not bar good-faith efforts to meet a competitive price.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 17040 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-2/chapter-4/article-3/section-17040