California Code, Food and Agricultural Code (Formerly Agricultural Code) - FAC § 61384

(1) “Cost,” as applied to manufacturers and distributors, means the total consideration paid or exchanged for raw product, plus the total expense incurred for manufacturing, processing, handling, sale, and delivery.

(2) “Cost,” as applied to wholesale customers, means the invoice price charged to the wholesale customer, or the expense of replacement, whichever is lower, plus the wholesale customer's cost of doing business.

(3) “Cost of doing business,” as applied to wholesale customers, means a wholesale customer's total operating expense divided by the customer's total sales income.

(4) “Total consideration paid or exchanged for raw product,” in the case of market milk or market cream used in the manufacture of Class I products as defined pursuant to Sections 1051.40 and 1051.42 of Title 7 of the Code of Federal Regulations means the current announced regulated minimum price of Class I milk, skim, or cream, payable by handlers to producers as provided in Sections 1051.50, 1051.51, and 1051.52 of Title 7 of the Code of Federal Regulations.

(1) The meeting, in good faith, of a lawful competitive price or a lawful competitive condition.

(2) A distributor's action in making conditional sales of equipment or other property, extending credit for merchandise purchased, or paying a customer's obligations not otherwise prohibited by this chapter to another distributor in connection with the transfer of the customer's business from the latter to the former.

(1) Any modifications to the generally accepted accounting principles described in subdivision (c) necessary to satisfy the requirements of this section.

(2) Procedures for evaluating efforts to meet lawful competitive prices or conditions.

(3) Other procedures necessary or appropriate to facilitate the application or enforcement of this section.