Los Angeles Check Sellers Ass'n v. United States National Bank

The issue to be determined is whether the issuance of a money order, for a fee, by defendant bank can be a violation of the “sales below cost” and “loss leader” prohibitions of the Unfair Practices Act (Bus, & Prof. Code, §§ 17000,17043,17044).

The case is here on plaintiff’s appeal from a judgment of dismissal entered after the trial court had sustained a general demurrer to a second amended complaint, without leave to amend further.

The complaint alleges in substance the following:

Plaintiff is a trade association whose members are licensed to sell and cash checks and money orders under the Check Sellers and Cashers Law (Fin. Code, § 12000 et seq.). The causes of action of the members have been assigned to plaintiff. Each of the plaintiff’s members sells checks or money orders to the public through agents who are usually independent businesses such as liquor stores, drug stores, food markets and other retail establishments. The public pays fees ranging from 20 to 35 cents per check, depending upon its size. The selling agent retains a portion of that fee as his commission, and the remainder is remitted to the seller. The amount of that commission is determined by bargaining.…