Unfair Competition

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Unfair Competition Defined (Bus. & Prof. Code, § 17200.
(Morris v. Redwood Empire Bancorp)

A. The Termination Fee Is Not a Liquidated Damage Under Civil Code Section 1671

The UCL defines “unfair competition” to include any “unlawful, unfair or fraudulent business act or practice . . . .” (Bus. & Prof. Code, § 17200.) This language is intended to protect consumers as well as business competitors; its prohibitory reach is not limited to deceptive or fraudulent acts, but extends to any unlawful business conduct. (Committee on Children’s Television, Inc. v. General Foods Corp. (1983) 35 Cal.3d 197, 209-210.) “By proscribing ‘any unlawful’ business practice, ‘section 17200 “borrows” violations of other laws and treats them as unlawful practices’ that the unfair competition law makes independently actionable.” (Cel-Tech, supra, 20 Cal.4th 163, 180.) In the second amended complaint, Morris alleges the termination fee runs afoul of two statutes. Specifically, he alleges the termination fee is an unreasonable liquidated damages provision in violation of Civil Code section 1671, and unconscionable under Civil Code section 1670.5.

Morris v. Redwood Empire BancorpG0336494/29/05 CA4/3
Morris v. Redwood Empire BancorpG0336494/29/05 CA4/3-pdf

Apr 29 2005

G033649
[PDF] [DOC]

Morris v. Redwood Empire Bancorp 4/29/05 CA4/3

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Bruton v. United States, supra, 391 U.S. 123 [20 L.Ed.2d 476] hhh
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