laws528 competition and consumer law · this week we will consider the history and design of the...
TRANSCRIPT
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COMPETITION AND CONSUMER LAW
TableofContents
WEEK1[INTRODUCTION].................................................................................................................9Crownimmunity...........................................................................................................................................11
ACCCvBaxterHealthcarePtyLtd(2007)237ALR512..............................................................................11
Section5oftheCCA–ExtraterritorialapplicationofheACL........................................................11
ACCCvChen[2003]FCA897....................................................................................................................................11
ExtendedApplicationoftheACL.............................................................................................................12
JurisdictionoftheCourt.............................................................................................................................12
ApplicationoftheCriminalCode.............................................................................................................12
‘Consumer’......................................................................................................................................................13
Section3oftheACL......................................................................................................................................................13
‘Corporation’andRelatedBodyCorporates........................................................................................15
Section4oftheCCA2010(Cth)..............................................................................................................................15
ShahidvAustralasianCollegeofDermatologists(2007)72IPR555....................................................16
EvAustralianRedCrossSociety(1991)99ALR601...................................................................................16
‘TradeandCommerce’................................................................................................................................17
ConcreteConstructions(NSW)PtyLtdvNelson(1990)92ALR193.......................................................17
O’BrienvSmolonogov(1983)53ALR107..........................................................................................................17
ArgyvBlunt&LaneCoveRealEstatePtyltd(1990)94ALR719..........................................................18
LubidineusevBevanerePtyLtd(1984)55ALR273....................................................................................18
PublicStatements,DebatesandEducation..........................................................................................19
PlimervRoberts(Noah’sArkCase)(1997)150ALR235..........................................................................19
AccessorialLiability.....................................................................................................................................19
YorkevLucas(1985)61ALR307.........................................................................................................................19
RvTannos........................................................................................................................................................................20
WEEK2[CONSUMERGUARANTEES]............................................................................................21“Attempttocontravene”.............................................................................................................................21
Liabilityofcorporateandnon-corporateprincipals........................................................................22
2
Section139BoftheCCA.............................................................................................................................................22
TescoSupermarketsLtdvNattrass[1972]AC153.........................................................................................23
ConsumerGuarantees.................................................................................................................................24
Consumerguaranteesinrelationtogoods..........................................................................................25
Section51–Guaranteeastotitle...........................................................................................................................26
Section52–Guaranteetoundisturbedpossession.......................................................................................26
Section53–Guaranteeastoundisclosedsecuritiesetc..............................................................................26
Section54–Guaranteeastoacceptablequality..............................................................................................27
Section55–Guaranteeastofitnessforanydisclosedpurposeetc........................................................30
Section56–Guaranteerelatingtothesupplyofthegoodsbydescription........................................31
Section57–Guaranteesrelatingtothesupplyofgoodsbysampleordemo....................................32
Section58–Guaranteeastorepairsandspareparts...................................................................................32
Section59–Guaranteeastoexpresswarranties...........................................................................................33
ConsumerGuaranteesinrelationtosupplyofservices..................................................................34
Section61–Guaranteesastofitnessforaparticularpurposeetc..........................................................34
Section62–Guaranteeastoreasonabletimeforsupply............................................................................35
Section63-ServicestowhichthisSubdivisiondoesnotapply...............................................................35
ConsumerGuaranteeRemedyRegime..................................................................................................35
Actionagainstthesupplierofgoods.....................................................................................................................36
WEEK3[MISLEADINGANDDECEPTIVECONDUCT]...............................................................41Inducesoriscapableofinducingerror................................................................................................41
ParkdaleCustomBuiltFurniturePtyLtdvPuxuPtyLtd(1982)42ALR1............................................42
Mereconfusionorwonderment..............................................................................................................42
McWilliam’sWinePtyLtdvMcDonald’sSystemofAustraliaPtyLtd(1980)33ALR394..............42
Doctrineoferroneousassumption.........................................................................................................43
“Likelytomisleadordeceive”..................................................................................................................43
TacoCoofAustraliaIncvTacoBellPtyLtd(1982)42ALR177...............................................................43
Whomustbemisled?...................................................................................................................................44
GeneralPrinciples........................................................................................................................................45
Conductmustbeviewedasawhole.....................................................................................................................45
Multiplemeanings.........................................................................................................................................................45
Intention(andhonesty)..............................................................................................................................................45
SpokenWords.................................................................................................................................................................45
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Literaltruths....................................................................................................................................................................46
Half-truths........................................................................................................................................................................46
Silence................................................................................................................................................................................46
Futureconduct(predictions,forecastsandopinions)..................................................................................47
Failuretomakeproperinquiries...........................................................................................................................47
Failuretoaccommodatesubsequentchangesandthetransitoryeffect...............................................48
Passingoninformation...............................................................................................................................................48
Disclaimersandexclusionclauses.........................................................................................................................49
MisleadingandDeceptiveConductandAdvertising........................................................................49
Puffery................................................................................................................................................................................50
SmallPrint........................................................................................................................................................................50
Asterisk..............................................................................................................................................................................51
Advertisinganddifferentcommunicationmediums.......................................................................52
MedicalBenefitsFundofAustraliaLtdvCassidy(2003)205ALR402................................................52
AdvertisingandPackaging........................................................................................................................52
RedBullAustraliaPtyLtdvSydneywideDistributorsPtyLtd[2001]FCA1228.............................52
AdvertisingandLabelling..........................................................................................................................53
CharacterAdvertising.................................................................................................................................53
PacificDunlopLtdvHogan(CrocodileDundeeCase)(1989)87ALR14............................................53
ComparativeAdvertising...........................................................................................................................53
DisparagingAdvertising.............................................................................................................................53
Makita(Aust)PtyLtdvBlack&Decker(A/Asia)PtyLtd(1990)18IPR270....................................53
ParodyAdvertising......................................................................................................................................54
SurgeLicensingIncvPearson.................................................................................................................................54
Tradingnamesandbusinessnames......................................................................................................54
WEEK4[MISLEADINGANDDECEPTIVECONDUCTCONT.SPECIFICFALSEOR
MISLEADINGREPRESENTATIONS]...............................................................................................55TortofPassingoff.........................................................................................................................................55
TwentiethCenturyFoxFilmCorporationvSouthAustralianBrewingCoLtd(DuffBeercase)
(1996)66FCR451........................................................................................................................................................55
Negligentmisstatementsundertortlaw..............................................................................................56
Section29–Falseormisleadingrepresentationsaboutgoodsorservices.............................56
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s29(1)(a)Particularstandard,quality,value,grade,composition,style,model,history,oruse
ofgoods..............................................................................................................................................................................59
s29(1)(b)‘Particularstandard,quality,value,grade’ofservices...........................................................60
s29(1)(c)‘New’goods................................................................................................................................................61
s29(1)(e)and(f)‘Testimonials’............................................................................................................................61
s29(1)(g)‘Sponsorship,approval,performancecharacteristics,etc’and(h)‘Sponsorship,
approvaloraffiliationofpersons’..........................................................................................................................62
s29(1)(i)‘Price’ofgoodsandservices................................................................................................................62
s29(1)(k)‘Placeoforigin’.........................................................................................................................................63
S29(1)(m)‘Exclusion’ofanyconsumerguarantee,etc...............................................................................63
Section30–Falseormisleadingrepresentationsaboutsaleetcofland..................................64
Section31–MisleadingConductrelatingtoemployment..............................................................65
ACCCvZanokTechnologiesPtyLtd[2009]FCA1124.................................................................................65
Section33–MisleadingConductastothenatureetcofgoods.....................................................66
ACCCvHalkaliaPtyLtd(No2)[2012]FCA535..............................................................................................67
ACCCvMailpostAustralia[2010]FCA369.......................................................................................................67
MisleadingConductintheinternet........................................................................................................67
ACCCvJones(No3)(2010)FCA908...................................................................................................................68
‘Intradeorcommerce’ontheinternet................................................................................................................69
OnlineAuctions..............................................................................................................................................................70
AriixLLCvMahilall[2014]FCA429.....................................................................................................................70
WEEK5[UNCONSCIONABLECONDUCTANDUNFAIRCONTRACTTERMS].....................72Backgroundtounconscionableconduct...............................................................................................72
Section20–Unconscionableconductwithinthemeaningoftheunwrittenlaw...................73
ACCCvSamtonHoldingsPtyLtd(2002)ALR76............................................................................................74
Definitionofunconscionableconductintheunwrittenlaw......................................................................74
Elementsofunconscionableconductintheunwrittenlaw...........................................................74
CommercialBankofAustraliaLtdvAmadio(1983)46ALR402...........................................................74
Firstelement-‘SpecialDisability’..........................................................................................................................75
Secondelement–‘Knowledgeofspecialdisability’.......................................................................................78
Thirdelement–‘Takingadvantageofthespecialdisability’.....................................................................78
Section21-Unconscionableconductinconnectionwithgoodsorservices............................79
Unconscionableconductundersection21..........................................................................................80
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Section22-Mattersthecourtmayhaveregardtoforthepurposesofsection21................81
Unconscionableconductwithconsumers............................................................................................83
ACCCvLuxDistributorsPtyLtd[2013]FCAFC90.........................................................................................83
UnfairContractterms..................................................................................................................................84
Section23-Unfairtermsofconsumercontractsandsmallbusinesscontracts...............................84
Section24–Meaningofunfair................................................................................................................................86
Section25-Examplesofunfairterms.................................................................................................................87
Section26-Termsthatdefinemainsubjectmatterofconsumercontractsorsmallbusiness
contractsetc.areunaffected.....................................................................................................................................88
Remedies.........................................................................................................................................................88
WEEK6[OTHERSHARPPRACTICESANDMANUFACTURER’SLIABILITY].....................89Section32Offeringrebates,gifts,prizes,etc......................................................................................89
TPCvCaldertonCorpPtyLtd(1994)ATPR41-306......................................................................................90
ACCCvNationwideNewsPtyLtd(1996)36IPR75.....................................................................................90
Section35-Baitadvertising.....................................................................................................................90
Section36-WronglyAcceptingPayments...........................................................................................91
ACCCvEDirectPtyLtd[2008]FCA65................................................................................................................92
Section39-Unsolicitedcreditanddebitcards..................................................................................92
Section40-UnsolicitedGoodsorServices..........................................................................................93
ACCCvArtoriosInkCoPtyLtd(No2)[2013]FCA1292............................................................................94
Section44-Pyramidselling......................................................................................................................98
ACCCvJutsen(No3)(2011)285ALR110.....................................................................................................100
Section47–MultiplePricing..................................................................................................................100
Section48-ComponentPricing.............................................................................................................102
ACCCvGourmetGoody’sFamilyRestaurantPtyLtd[2010]FCA1216............................................103
Section49-ReferralSelling....................................................................................................................104
ACCCvGiraffeWorldAustraliaPtyLtd(No2)(1999)166ALR74.....................................................104
Section50-HarassmentandCoercion................................................................................................104
ACCCvMaritimeUnionofAustralia(2001)187ALR487.......................................................................105
Remediesandenforcementpowers.....................................................................................................105
BackgroundofManufacturers’Liability.............................................................................................106
DonoghuevStevenson[1932]AC562..............................................................................................................106
‘Safetydefect’...............................................................................................................................................108
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GlendaleChemicalProductsPtyLtdvACCC(1998)90FCR40............................................................108
Section138-Liabilityforlossordamagesufferedbyaninjuredindividual........................109
Section139-Liabilityforlossordamagesufferedbyapersonotherthantheinjured
individual......................................................................................................................................................109
Defences–Section142..............................................................................................................................109
Thesafetydefectatthetimeofsupply.............................................................................................................110
Stateofscientificandtechnicalknowledge....................................................................................................110
Ancillaryprovisions...................................................................................................................................111
WEEK7[INTRODUCTIONTOCOMPETITIONLAW–FUNDAMENTALCOMPETITION
BASICS]...............................................................................................................................................112BackgroundofCompetitionLaw...........................................................................................................112
Cartels.............................................................................................................................................................114
‘Perse’prohibitionprovisions...............................................................................................................115
PartVII–AuthorisationsandNotifications.......................................................................................117
KeyConcepts................................................................................................................................................118
‘Market’..........................................................................................................................................................118
QueenslandCo-opMillingAssn.Ltd,Re(1976)8ALR481.....................................................................118
Dimension1-ProductMarket..............................................................................................................................119
Dimension2–Geographicmarket......................................................................................................................119
Dimension3–Functionalmarket.......................................................................................................................120
Dimension4–Timemarket..................................................................................................................................120
‘MarketPower’.............................................................................................................................................121
‘Marketshare’..............................................................................................................................................................121
‘Barrierstoentry’.......................................................................................................................................................121
‘Substantiallesseningofcompetition’.................................................................................................122
WEEK8[COMPETITIONREGULATION–SECTION45]........................................................123“Contractarrangementsorunderstanding”(CAU).........................................................................125
‘Contract’........................................................................................................................................................................125
‘Arrangements’............................................................................................................................................................125
‘Understandings’.........................................................................................................................................................126
‘Purposeoreffect’.......................................................................................................................................126
“Effectorlikelyeffect”...............................................................................................................................127
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“Provision”....................................................................................................................................................127
ACCCvSafewayStoresPtyLtd(no2)[2001]FCA1861..........................................................................127
Section45(1)(a)..........................................................................................................................................128
Concertedpractices-Section45(1)(c)................................................................................................128
Section45(3)................................................................................................................................................131
Section45(5)andonwards.....................................................................................................................131
Section45(6A).............................................................................................................................................132
Section45(7)................................................................................................................................................133
Exceptions.....................................................................................................................................................133
Section45(8A).............................................................................................................................................................133
Section45(8AA)..........................................................................................................................................................133
Section45(9)................................................................................................................................................................134
Meaningof‘Competitors’.........................................................................................................................134
Meaningof‘CAU’..........................................................................................................................................134
Meaningof‘substantiallesseningofcompetition’inamarket...................................................135
Secondaryboycotts–ss45D-45ED.....................................................................................................135
Penalties........................................................................................................................................................136
WEEK9[COLLUSIONANDCARTELREGULATION]...............................................................137Background...................................................................................................................................................137
Whatarecartels?........................................................................................................................................137
Typesofcartelconduct.............................................................................................................................137
Pricefixing.....................................................................................................................................................................138
Outputrestriction.......................................................................................................................................................139
Bidrigging.....................................................................................................................................................................139
Marketsharing............................................................................................................................................................140
Civilprovisions-s45AJ,45AK...............................................................................................................143
Criminalprovisions-s45AF,45AG......................................................................................................144
Section45AH–DeterminingGuilt......................................................................................................................146
Exemptions...................................................................................................................................................147
Anti-overlapprovisions............................................................................................................................148
Section45AU-Collectiveacquisitionofgoodsorservices......................................................................148
ImmunityandCooperationPolicy........................................................................................................148
Caselaw..........................................................................................................................................................149
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CDPPvNipponYusenKabushikiKaisha[2017]FCA876...........................................................................149
ACCCvFlightCentre(2016)HCA49.................................................................................................................149
ACCCvAustralianEggCorporationLtd[2017]FCAFC152......................................................................150
WEEK10[MISUSEOFMARKETPOWER].................................................................................151Theformers46...........................................................................................................................................151
Section46......................................................................................................................................................152
Criteriaofs46..............................................................................................................................................153
Takingadvantageofmarketpower....................................................................................................................153
Conductthatfallsundersection46......................................................................................................154
Refusaltosupply........................................................................................................................................................154
Refusaltoacquire.......................................................................................................................................................155
Predatorypricing.......................................................................................................................................................155
Pricediscrimination..................................................................................................................................................156
Landbanking................................................................................................................................................................157
Anti-competitivethreats.........................................................................................................................................158
Anti-competitivebundlingofgoods...................................................................................................................158
Otherelementsins46..............................................................................................................................159
WEEK11[EXCLUSIVEDEALING,RPM,ANDMERGERSANDACQUISITIONS]..............160Section47–ExclusiveDealing...............................................................................................................160
Typesofexclusivedealings.....................................................................................................................165
Solusagreements-s47(2)(d).............................................................................................................................165
Tyingagreements–s47(2)(d).............................................................................................................................167
Minimumquantitiescondition–s47(2)(d)...................................................................................................167
CustomerRestrictions–s47(2)(f)(i)................................................................................................................167
Third-lineforcing–s47(6)and(7)...................................................................................................................168
Section48–ResalePriceMaintenance...............................................................................................169
DefinitionofRPM–Part8......................................................................................................................................169
Section50–MergersandAcquisitions................................................................................................170
AuthorisationandNotificationProcess..............................................................................................173
Authorisations.............................................................................................................................................................173
Notification....................................................................................................................................................................174
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WEEK1[INTRODUCTION]
Readings-CooreyChapter1andChapter2
ThisweekwewillconsiderthehistoryanddesignoftheCompetitionandConsumerAct2010(Cth);
constitutionalimpedimentstolegislationinthisareaandtheroleofapplicationschemes.Wewill
refreshskillsofstatutoryinterpretation.
Websites
https://www.accc.gov.au/
http://www.australiancompetitionlaw.org/
http://consumerlaw.gov.au/
AustralianConsumerLawislikeanationalregime,comingintoeffectasofthe1January2011and
itreplaced17differentlawsonconsumerprotection,infederallawsandstatelaws.Priortothat,
themainpiecewastheTradePracticesAct1974,consumerprotectionbeingunderPart5.TheAct
wasRENAMED(notrepealed).Priorto1974however,consumerprotectionwasnon-existent.The
firstpieceofcompetitionlegislationcameintoeffectin1906,namedtheAustralianIndustries
PreservationsAct-protectingAustralianprimaryproducersagainstcartelsfromtheUSandtariff
leviesimposed.However,3yearsafterthelegislationcameintoeffect,therewasacaseHuddart
Parker&CoPtyLtdvMoorehead[1909]HCA36;(1909)8CLR330whereitwasfoundthatthe
AustralianIndustriesPreservationActexceededitspowersfromtheAustralianConstitutionand
thuswasultravires.Asaresult,thelegislationwasrepealed.Fromthen,competitionlawwentinto
the“darkages”wheretherewerescatteredpiecesoflegislation,sucha.Therethenwasabigpush
inthelate60’sandearly70’sforanewprotectionforcompetitionandconsumerlaw.
Chapter1-Introduction
ContextofAustralianmarketin60’sand70’s
● Onlyonetypeofbeer,onlyonetypeofoil-novarietyofproducts-thepriceswerehigh
● Noregulation(e.g.productsafety)
OurCompsandConsumerlawis40yearsinthemaking-ACCCisinthetop5government
regulatorsintheworld.
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• allthestateslawwasnotharmonisedbecauseoftheconstitutionallimitsoftheTrade
PracticesAct
o grabbedit’spowersfromvariousareasoftheConstitution
§ Corporationspower
§ Tradeandcommercepower
§ PostalService?
• Howeverwhatthecommonwealthcouldnotdoisregulateindividuals
• E.g.MisleadingordeceptiveConduct
o Currentlysection18ACL
o Usetobes52oftheTradePracticesActandmirroredinstateacts(s40oftheNSW
Act)
o Differencebetweens40ands52?
§ 52–regulatedcorporation
§ 40–regulatedpeople
o myriadofprovisionsandregulationbetweenstates
• IDEA=harmonising
• StateshaveasaresultgivenuptheirpowerstoregulateindividualsforACLtothefederal
power
TheACLoperatesbothasalawfortheCommonwealthandasan‘appliedlaw’ofthestates
andterritories.TheprovisionintheACLaredraftedtoreflectthisandapplyto‘persons’
insteadof‘corporations’.
NB–ASICisalsoaregulatorofconsumerlaw.Itregulatescomplaintsinrelationtofinancialissues
andfinancialproducts.Itstillretainsthisposition.Reason–thisisahistoricalrolesince1995.
WhatarethekeychangebroughtaboutbytheACL?
• harmoniseddefinitions;
o consumer
• whatisanunfaircontract?
• Amendmentstogeneralprovisions
• Newnationalconsumerguaranteesregime
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• Newnationalconsumerunsolicitedconsumeragreementregime
• Newnationalproductsafetyregimeadditionalnationalinformationstandardsprovisions
forgoodsandservices
• AdditionalenforcementpowersbytheACCC
Crown immunity
• adoctrineinheritedfromEnglishlaw
• unlessthelegislationspecificallystatestheCrowninthelegislation,thelegislationdoesnot
applytotheCrown/government
• theCrownISspecificallystatedintheACCin2A(federal),2B(state)and2C(local)
ACCC v Baxter Healthcare Pty Ltd (2007) 237 ALR 512.
FACTS:BaxterprovidedsterileandPDfluids.Engaginginmisuseofmarketpower.Crown
immunitywasarguedbyBaxter–ifthestatesaregoingtobeimmune,thatshouldextendto
companieswhodealwiththeCrown(dealingwith2B).
HELD–HCheldnothisisnotthecase
Section 5 of the CCA – Extraterritorial application of he ACL
• appealedallthewayuptothefederalcourtinthecaseofValvrecently
• providesextraterritorialreachoftheACL,butyoucanonlygetthatreachif3thingsare
satisfied
o incorporatedinAustralia/carryingonbusinessinAustralia
o Australiancitizen
o OrdinaryresidentinAustralia
• Dealswithinternationaltrade
ACCC v Chen [2003] FCA 897.
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FACTS–MrChenframedtheSydneyOperaHousewebsite,copyingit’sexactlayoutandtryingto
passitoffasit’sownimitatingthewebsite,hewassellingfraudulentticketsforlargeamountsof
money,targetingnon-Australianresidents.TheCommissionsoughtsubstitutedservicewhereyou
can’tfindtheperson–thecasewentonexparte.
SackvilleJwasthejudgeandthecourtishesitanttograntinjunctionsinthesecircumstancesas
theyarelikelytobeignored–theydon’twanttheirauthoritytobeundermined.TheACCCargued
thattheACLisofhighimportanceinAustralia,lotsoftouristscominginandout.TheACCChad
beenincontactwiththeUSAregulatortheFairTradingCommissioninordertoseekan
enforcementofaforeignjudgment.Alsogavepolicyarguments.
HELD-SackvilleJgrantedinjunction.Judgmentcamedownhereatapproximately4:30pm–inUS
time,hiswebsitecamedown4andahalfhourslater
Extended Application of the ACL
• Section6(3)
o AspecificpowerthatallowedtheACCCtosueindividualswhentheyengagedin
conductthatwasbywayofuseofpostalservicesortelephonic/communication
services,etc.
o TheACCCcansuetheindividualaswellasthecorporation
o Notusedasmuchthesedays
Jurisdiction of the Court
• 138oftheACLgivesthejurisdictiontotheFederalCourt-MAIN
• thereAREcross-vestingpowersbutthereshouldbeareasonforthis
Application of the Criminal Code
• ACLislinkedtothecriminalcode
• Notutilisedasmuchaswehavealotofcivilremedies
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‘Consumer’
Section 3 of the ACL
• nottobeconfusedwith‘consumergoods’definedinsection2or‘consumercontracts’in
section23(3)
3Acquiringgoodsasaconsumer(1)Apersonistakentohaveacquiredparticulargoodsasaconsumerif,andonlyif:
• (a)theamountpaidorpayableforthegoods,asworkedoutundersubsections(4)to(9),didnotexceed:
o (i)$40,000;oro (ii)ifagreateramountisprescribedforthepurposesofthisparagraph-that
greateramount;or• (b)thegoodswereofakindordinarilyacquiredforpersonal,domesticorhouseholduseor
consumption;or• (c)thegoodsconsistedofavehicleortraileracquiredforuseprincipallyinthetransportof
goodsonpublicroads.(2)However,subsection(1)doesnotapplyifthepersonacquiredthegoods,orheldhimselforherselfoutasacquiringthegoods:
• (a)forthepurposeofresupply;or• (b)forthepurposeofusingthemuportransformingthem,intradeorcommerce:
o (i)inthecourseofaprocessofproductionormanufacture;oro (ii)inthecourseofrepairingortreatingothergoodsorfixturesonland.
Acquiringservicesasaconsumer(3)Apersonistakentohaveacquiredparticularservicesasaconsumerif,andonlyif:
• (a)theamountpaidorpayablefortheservices,asworkedoutundersubsections(4)to(9),didnotexceed:
o (i)$40,000;oro (ii)ifagreateramountisprescribedforthepurposesofsubsection(1)(a)-that
greateramount;or• (b)theserviceswereofakindordinarilyacquiredforpersonal,domesticorhouseholduse
orconsumption.Amountspaidorpayableforpurchases(4)Forthepurposesofsubsection(1)or(3),theamountpaidorpayableforgoodsorservicespurchasedbyapersonistakentobethepricepaidorpayablebythepersonforthegoodsorservices,unlesssubsection(5)applies.(5)Forthepurposesofsubsection(1)or(3),ifapersonpurchasedgoodsorservicesbyamixedsupplyandaspecifiedpricewasnotallocatedtothegoodsorservicesinthecontractunderwhichtheywerepurchased,theamountpaidorpayableforgoodsorservicesistakentobe:
• (a)if,atthetimeoftheacquisition,thepersoncouldhavepurchasedfromthesupplierthegoodsorservicesotherthanbyamixedsupply-thepriceatwhichtheycouldhavebeenpurchasedfromthesupplier;or
• (b)if:o (i)paragraph(a)doesnotapply;but
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o (ii)atthetimeoftheacquisition,goodsorservicesofthekindacquiredcouldhavebeenpurchasedfromanothersupplierotherthanbyamixedsupply;
thelowestpriceatwhichthepersoncould,atthattime,reasonablyhavepurchasedgoodsorservicesofthatkindfromanothersupplier;or
• (c)if,atthetimeoftheacquisition,goodsorservicesofthekindacquiredcouldnothavebeenpurchasedfromanysupplierexceptbyamixedsupply-thevalueofthegoodsorservicesatthattime.
Amountspaidorpayableforotheracquisitions(6)Forthepurposesofsubsection(1)or(3),theamountpaidorpayableforgoodsorservicesacquiredbyapersonotherthanbywayofpurchaseistakentobethepriceatwhich,atthetimeoftheacquisition,thepersoncouldhavepurchasedthegoodsorservicesfromthesupplier,unlesssubsection(7)or(8)applies.(7)Forthepurposesofsubsection(1)or(3),if:
• (a)goodsorservicesacquiredbyapersonotherthanbywayofpurchasecouldnot,atthetimeoftheacquisition,havebeenpurchasedfromthesupplier,orcouldhavebeenpurchasedonlybyamixedsupply;but
• (b)atthattime,goodsorservicesofthekindacquiredcouldhavebeenpurchasedfromanothersupplierotherthanbyamixedsupply;theamountpaidorpayableforthegoodsorservicesistakentobethelowestpriceatwhichthepersoncould,atthattime,reasonablyhavepurchasedgoodsorservicesofthatkindfromanothersupplier.
(8)Forthepurposesofsubsection(1)or(3),ifgoodsorservicesacquiredbyapersonotherthanbywayofpurchasecouldnot,atthetimeoftheacquisition,havebeenpurchasedfromanysupplierotherthanbyamixedsupply,theamountpaidorpayableforthegoodsorservicesistakentobethevalueofthegoodsorservicesatthattime.Amountspaidorpayableforobtainingcredit(9)If:
• (a)apersonobtainscreditinconnectionwiththeacquisitionofgoodsorservicesbyhimorher;and
• (b)theamountpaidorpayablebyhimorherforthegoodsorservicesisincreasedbecauseheorshesoobtainscredit;obtainingthecreditistakenforthepurposesofsubsection(3)tobetheacquisitionofaservice,andtheamountpaidorpayablebyhimorherfortheserviceofbeingprovidedwiththecreditistakentoincludetheamountoftheincrease.
Presumptionthatpersonsareconsumers(10)IfitisallegedinanyproceedingunderthisSchedule,orinanyotherproceedinginrespectofamatterarisingunderthisSchedule,thatapersonwasaconsumerinrelationtoparticulargoodsorservices,itispresumed,unlessthecontraryisestablished,thatthepersonwasaconsumerinrelationtothosegoodsorservices.Mixedsupplies(11)Apurchaseorotheracquisitionofgoodsorservicesismadebyamixedsupplyifthegoodsorservicesarepurchasedoracquiredtogetherwithotherpropertyorservices,ortogetherwithbothotherpropertyandotherservices.Suppliestoconsumers
15
(12)InthisSchedule,areferencetoasupplyofgoodsorservicestoaconsumerisareferencetoasupplyofgoodsorservicestoapersonwhoistakentohaveacquiredthemasaconsumer.
• Thereare12subsectionswithadifferentthresholdtest
• Thereareafurther2definitionsofconsumerintheFairTradingActNSWand2morein
everyotherstatelegislation–noneidentical
• Andthen2MOREinthesaleofGoodsAct1993andanother1or2ineveryotherstate
• Subsection1–thedefinitionofconsumerinrelationtogoods
o Thereare3wayssomeonecanbedefinedasaconsumerinrelationtogoods-
§ 1.Thresholdtestof$40,000.00orless
• anyone,evenasmallbusiness,willbeprotectedbytheconsumer
guaranteeregime
• whataboutwhenyoubuymultipleitems?–aretheyseparategoods
orshouldtheybeconsideredtogether–caselawwouldsuggestthey
areusuallyconsideredtobeseparate
§ 2.Thegoodthatyouacquiredwasforpersonal,domesticorhouseholduse
orconsumption
§ 3.Avehicleortrailerwasrequiredtotransportthegoodonpublicroads
• Subsection2–theexceptionsthatapplytothatdefinition
o Purposeofre-supplyorthepurposeoftransformingthemintradeorcommerce-
e.g.afurniturecompanywhenbuyingthewood
• Subsection3–thedefinitionofconsumerinrelationtoservices
o Mirrorssubsection1
o Notehowevertheydidnotputtheexceptionsforsubsection3astheydidfor
subsection1
o Youcannotre-supplyaservice–howeverlaterintheactthereistalkofaremedyof
re-supplyofservice–aclearinconsistency
• Therestdealwiththingssuchasamountspaidformixsupplies
‘Corporation’ and Related Body Corporates
• thedefinitionofCorporationundertheCCAmirrorsthoughtotheACL
Section 4 of the CCA 2010 (Cth)corporationmeansabodycorporatethat:
16
• (a)isaforeigncorporation;
• (b)isatradingcorporationformedwithinthelimitsofAustralia
• (c)isincorporatedinaTerritory;or
• (d)istheholdingcompanyofabodycorporateofakindreferredtoinparagraph(a),(b)or(c).
• foreigncorporation–ifyouhaveincorporatedoutsideAustraliainanotherjurisdiction,
youarestillcapturedbytheACLandtheCCA
• tradingcorporation–
o workoutbyasubstantialcurrentactivitiestest–lookingathowmuchcommercial
activitythecompanyengagesin–evenifitisnottheprimaryactivity
o lookattheconstitution,etc(usetoONLYlookattheconstitutionbutsometimesnot
alwaysanaccurateportrayal)
Shahid v Australasian College of Dermatologists (2007) 72 IPR 555.
FACTS:Trainingcollege,didnotchargetheDoctorsfortheactualtrainingtojoinbuthadaoncea
yearscientificconferencewhichwouldmakealotofmoneyforthem),wheretheywouldgetall
theirmoneytoruntheorganisation.
HELD:NicholasJ–aretheyatradingcorporation–yesbecauseofthisoneweek
E v Australian Red Cross Society (1991) 99 ALR 601.
FACTS:RedCrossNSWwasn’tmakinganymoneybecausethegovernmentwouldwipeoutany
expenses–thereforegeneratingalotofmoneywithlittleshopsatthefrontofhospitals,etc–
makingroughly2mil
HELD–thiswasmorethanenoughtobeconsideredatradingcorp
• Financialcorporation–
o Substantialactivitiestest
17
o Section2.90–financialcorporationsthereforeincludeawiderangefinancial
companies,insurancecompanies,etc.
DefinitionofRelatedBodyCorporates
• threethingsneedtobesatisfied
o youownmorethan50%sharesofassetsinthecompany;
o youhavecontrolofmorethan50%oftheboardofdirectors;
o youcontrolthevotingpowerofthecompany.
‘Trade and Commerce’
• ifaproducthastobeintradeorcommercefortheprovisiontowork,thenitislimiting
o Whatisintradeandcommerceandwhatisinrelationtoit.
Concrete Constructions (NSW) Pty Ltd v Nelson (1990) 92 ALR 193.
FACTS:MrNelsonwasanemployeeofCCandfellthreestoriesdownashaftinthecourseof
business.Suedunderarangeofthings.Butwhatthecourtshadissuewithwaswhetherthe
communicationgivenbyhissupervisoronethatwasgivenINtradeorcommerceorinrespectofor
incidentalto?Thewordsinthelegislationstatethatapersoninsuchacorporationshallnot,in
tradeorcommerce,engageinconductthatismisleading.
HELD:MajorityHELDthatitwasincidentaltotheconstructionofthebuildingandthenegotiations
betweentheownerandconstructersarecommunicationsINtradeorcommerce.Here,instructions
internallytoanemployerwerenotcommercialincharacter.Nelsonthereforenotsuccessful
• PrivateSaleandBusiness
o OneoffprivatesaleoflandbyavendorisgenerallynotconsideredtobeinTOC
o E.g.–salesprivateproperty–realestateagentsandlawyersDANGERZONE
O’Brien v Smolonogov (1983) 53 ALR 107.
FACTS:Obrienadvertisedthattheyhad2portionsofpropertyinJindabyne.Smolonwantedtobuy
thelandwithafriend–rangthemup.OmadetherepresentationsaboutthelandthatwereNOT
TRUE.Spurchasedthelandwithfriendbuysubsequentlysuedformisleadingconduct.
18
HELD:FFCheldtherewasNOTenoughforittobeconsideredinTOC.Thiswasbecauseitwasnot
regularbasisandnotcommercialincharacter.
Argy v Blunt & Lane Cove Real Estate Pty ltd (1990) 94 ALR 719.
FACTS:RaymoneCookswasavendorandhiredrealestateagentsforaparticularproperty.Argy
readtheadvertisementsinthenewspaper,whichmadesomefalserepresentations.Hewenttothe
auctionandwasthehighestbidderbutthepricewasnegotiatedandultimatelygotsaleofthe
property.Inthistimeperiod,herequestedafullcopyofthecontractanditwasn’tclearwho’sfault
itwasbutthefinalpageofthecontractwasmissingwhichwasa149certificate(important)–says
therewasanrestraintontheland
HELD:Therealestateagentwasfoundliable–didnotreallymatterwhodiditbecausethereal
estateagentwasengaginginTOC
[Contrastthiscasewith?]
Lubidineuse v Bevanere Pty Ltd (1984) 55 ALR 273.
FACTS:OneoffsaleofabusinessandYESsaidtobeinTOCeventhoughitwasavendor.Bevanere
wasanownerofacompany–Lubidineusewantedtobuyitbutsaidshewouldnotunlessa
particularemployeestayedbecauseshedidnotknowtheareaverywell.Salewentaheadandthe
employeeresignedthreedaysafterthepurchase.
HELD:WilcoxJsaidthatthisisdifferentbecausetheywererepresentationsmadeinacommercial
character.Representationwasmadebasedonapersonaboutgoodwill–commerce.Therefore
consideredtobeinTOC.
• Contrastthistopersonalproperty–chattels
o Whenyousellthingsontheinternet–sellingonethingyou’llbefinebutsellinglots
oftheonething,youwillbecaught
19
Public Statements, Debates and Education
Plimer v Roberts (Noah’s Ark Case) (1997) 150 ALR 235.
FACTS:Plimerwasaprofessoringeology.DrRobertswasgoingaroundallaroundAustralia
puttingoneducationpresentationsandconferencestalkingabouthistimeasaresearcher,
archaeologist,etc.Inapresentation,hesaidthathestumbledacrosstheremanentofNoah’sArk.
Plimerwasatthislectureandgothicnickersinatwistaboutthisrepresentation,suedunders40
oftheFTA–misleadingconducttothepublic.
HELD:FFCsawthatRobertswasneverpaidforthesepresentationsandheldthatwhathewas
sayingwasn’tstuffinTOC–theologicaltypesofdiscussion.Nothingofcommercialcharacter.
Howevertherewerepeoplethatrecordedhislecturesandmademoneyfromtheserecordings.If
Robertstookmoneyfromtheserecordings,thenhewouldbecaught
• AlsoconsiderOrionProducts
Accessorial Liability
• Sueindividualsassecondaryliableoraccessoriestotheconduct
• S75oftheCCAands2youACL
• ACCSusuallysuesacompanyastheprimarycontravenerandthensuesaccessorial
liabilities
o Thisisbecauseacompanyismakeupofindividualdirectors
o ACTSASADETTERANT–havetohitthemdirectly
• Twothresholdtest(YorkevLucas)
o YouneedACTUALknowledgeofthefactsthatsupporttheelementsofthe
contravention
o YouneedtotakesomekindofPHYSICALSTEPinengagingintheconduct
Yorke v Lucas (1985) 61 ALR 307.
FACTS:Lucaswasamanagingdirectorofthiscompanyandlicencedanothercompanycalled
Treasureways.Yorkewantedtobuythiscompanyandduringnegotiations,apieceofpaperwas
20
giventoYorkwhichsaidtheaverageweeklyturnoverwas$3,500.00–wasnottrue,waslessYork
suedformisleadingconduct–buttheevidenceputforwardtothecourtwasthatLucusdidnot
knowthatthecompanywasnotmakingthisamountofmoney–hewasthemiddleman–not
ACTUALknowledge
HELD:Thefirstelementwasnotsatisfied.
R v Tannos
FACTS:Supportstheelementthatyouneedsomereasonablesteps.Acriminalcase.DPPalleged
thatTannouswassmugglingdrugsintothecountryandthatfatherwasinvolved.Thefatherdidnot
knowthespecifics
HELD:SCsaidthatthefatherdidnottakeanyactivesteps–notenough.
• Continualformsofwilfulblindnesscanbedeemedtobeactualknowledge