Chavez
Chavez v. Whirlpool Corp.
Opinion
Opinion
Plaintiff Bill Chavez appeals a judgment dismissing his complaint against defendants Whirlpool Corporation (Whirlpool) and Howard's after the court sustained a demurrer without leave to amend. He alleges that Whirlpool has required Howard's and other retailers to maintain minimum resale prices for its products and contends the practice constitutes an unlawful combination under the Cartwright Act (Bus. & Prof.Code, § 16700 et seq.) and an unlawful and unfair business practice under the unfair competition law (Bus. & Prof.Code, § 17200 et seq.).
We conclude that the complaint fails to state a cause of action for violation of the Cartwright Act because the alleged conduct is permissible under the Colgate doctrine ( United States v. Colgate & Co. (1919) 250 U.S. 300 , 39 S.Ct. 465 , 63 L.Ed. 992 (Colgate )), and the facts pleaded are insufficient to establish a coerced agreement. We also conclude that conduct that is permissible under the Colgate doctrine is neither unlawful nor "unfair" under the unfair competition law, so the complaint fails to state a cause of action for violation of the unfair competition law. We therefore affirm the judgment.