Commissioner's Opinion No. 72 / 17F

State of California Department of Corporations

Brian R. Van Camp, Commissioner
In reply refer to: File No. _____

This interpretive opinion is issued by the Commissioner of Corporations pursuant to section 31510 of the franchise investment law. It is applicable only to the transaction identified in the request therefor, and may not be relied upon in connection with any other transaction.

Mr. J. L. Ckola, President
KLIM Corporation
11750 Sorrento Valley Road
San Diego, CA 94121

Dear Mr. Ckola:

The request contained in your letter dated April 10, 1972, for further consideration of the views expressed by us in Interpretive Opinion No. 71/57F and Interpretive Opinion No. 72/10F, has had the attention of the Commissioner.

As your letter correctly states, Interpretive Opinion No. 72/10F, assumed as a matter of fact that Distributors would purchase KLIM products from KLIM. This assumption was based upon information furnished by you with your letter dated February 10, 1972, and especially the "Distributor Agreement" submitted with your letter. According to that agreement, the Distributor is to be granted the right to deliver and distribute KLIM products from a named bottler in accordance with Exhibit A to the agreement, and that exhibit sets forth the "BOTTLER'S DOCK PRICE Per Case" for the various KLIM products, leading us to the inference that a Distributor would have to pay the bottler the bottler's dock price for KLIM products purchased from the bottler.

You have now advised us, however, that Distributors will purchase KLIM products directly from KLIM and not from the bottlers. Please be advised that the conclusions expressed in Commissioner's opinion No. 72/10F are equally applicable in that event.

Dated: San Francisco, California
May 3, 1972

By order of
Commissioner of Corporations

By __________________
Assistant Commissioner
Office of Policy