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HomeFinancial CodeDiv. 1.1Ch. 21Art. 1§ 1861 Corporate Price Fixing Ban

§ 1861 Corporate Price Fixing Ban

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1861 Corporate Price Fixing Ban

Key Takeaways

  • •If you work for a company, you can't use the company's money or power to control the price of things they sell.
  • •If you break this rule, you could pay a fine between $2,000 and $10,000.
  • •You might also go to jail for up to one year.

Example

If you work at a big toy company and team up with others to make all toy stores charge the same high price for a popular doll, so no one can sell it cheaper.

This is breaking the law because you used the company's power to control the price of the doll. You could get fined or even go to jail.

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

Official Source
View on CA.gov

§ 1861 Corporate Price Fixing Ban

It shall be unlawful for any director, officer, agent, or employee of any corporation to use or to conspire to use the credit, the funds, or the power of the corporation to fix or control the price of any commodities, and any person violating this section shall be punished by a fine of not less than two thousand dollars ($2,000) nor more than ten thousand dollars ($10,000), imprisonment in a county jail for not more than one year, imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or by both that fine and imprisonment, in the discretion of the court. (Added by Stats. 2011, Ch. 243, Sec. 13. (SB 664) Effective January 1, 2012.)

Last verified: January 23, 2026

Key Terms

unlawfuldirectorofficeragentemployeecorporationcreditfundspowerfix or control the pricecommoditiesfineimprisonment

Related Statutes

  • § 1879 Corporate Loan Discount Prohibition
  • § 1881 State Liability Misrepresentation Ban
  • § 1324 Bank Fraud By Insiders
  • § 1325 Bank Officer False Reports
  • § 10005 Foreign Entity Business Exemptions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 1861.
View Official Source