California Consumers Benefit from Out-of-State Computer Seller’s Win in §17200 Action

Successfully obtained summary judgment for an out-of-state computer seller in an action brought by an in-state consumer electronics association to enjoin sales in California.  The association brought a claim under Business & Professions Code §17200 alleging that the seller violated the Song-Beverly Consumer Warranty Act because the seller did not have service and repair facilities in California.  The trial court granted summary judgment holding that that section of the Song-Beverly Act violated the commerce clause of the U.S. Constitution.  The court of appeal, in a published opinion, affirmed without reaching the constitutional issue. This case is important because it allowed out-of-state mail order companies to offer more consumer choices and a superior service model to California consumers.  Resulted in a published opinion, California State Electronics Assn. v. Zeos International Ltd., 41Cal.App. 4th 1270, 49 Cal.Rptr.2d 127 (1996).

Location

Superior Court of California, County of Los Angeles
California Courts of Appeal

Counsel

Jeffrey L. Sikkema
David G. Hagopian

Related Industries

  • Technology & Telecommunications

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