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HomeBusiness and Professions CodeDiv. 7Pt. 2Ch. 2Art. 2§ 16727 Anti-Competitive Sales Restrictions

§ 16727 Anti-Competitive Sales Restrictions

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16727 Anti-Competitive Sales Restrictions

Key Takeaways

  • •You can't make someone agree not to buy from your competitors when selling or leasing something.
  • •This rule is to stop big companies from controlling everything and making it hard for smaller businesses to compete.
  • •If you try to do this and it makes competition weaker, it's against the law.

Example

A big store sells printers but makes customers promise not to buy ink from any other store.

This is not allowed because it stops other stores from selling ink and gives the big store too much control.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16727 Anti-Competitive Sales Restrictions

It shall be unlawful for any person to lease or make a sale or contract for the sale of goods, merchandise, machinery, supplies, commodities for use within the State, or to fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement or understanding that the lessee or purchaser thereof shall not use or deal in the goods, merchandise, machinery, supplies, commodities, or services of a competitor or competitors of the lessor or seller, where the effect of such lease, sale, or contract for sale or such condition, agreement or understanding may be to substantially lessen competition or tend to create a monopoly in any line of trade or commerce in any section of the State. (Added by Stats. 1961, Ch. 738.)

Last verified: January 22, 2026

Key Terms

unlawfulleasesalecontract for the salesubstantially lessen competitiontend to create a monopoly

Related Statutes

  • § 1050 Chiropractic Corporation Registration
  • § 1051 Chiropractic Corporation Registration Requirements
  • § 1053 Chiropractic Corporation Reporting Requirements
  • § 1054 Chiropractic Corporation Naming Rules
  • § 1055 Chiropractic Corporation Licensing Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 16727.
View Official Source