This article does not prohibit establishment of price schedules, or particular location price variations as provided for in Sections 1944 and 1945, which meet in good faith lawful competitive prices or lawful competitive conditions in the sale of milk or dairy products. “Meeting competition” is a question of fact to be determined under all the facts and circumstances of a particular instance. As a general rule, a distributor shall be deemed to have met in good faith a lawful competitive price or a lawful competitive condition if facts exist which would lead a reasonable and prudent person in the position of such a distributor to believe in good faith that his granting of a particular price (whether or not such price is less than the cost of such distributor as the term “cost” is defined in the Code and these regulations) would in fact meet, but not be lower than a lawful competitive price.

Note: Authority cited: Sections 407 and 61341, Food and Agricultural Code. Reference: Section 61384, Food and Agricultural Code.

History

1. Renumbering and amendment of former Section 1943 to Section 1944 and new Section 1943 filed 9-12-84; designated effective 11-1-84 (Register 84, No. 37).

2. Amendment of Note filed 8-8-2005; operative 9-7-2005 (Register 2005, No. 32).