Amcor Trading Pty Ltd v Metal Roofing & Cladding Pty Ltd

The case of Amcor Trading Pty Ltd v Metal Roofing & Cladding Pty Ltd, delivered by Moynihan J on 10 March 1999, involved the plaintiff, Amcor Trading Pty Ltd, a chemical supplier, and the defendant, Metal Roofing & Cladding Pty Ltd, a manufacturer of PVC piping. Amcor Trading sued the defendant for the balance of the price of PVC resin sold and delivered, as well as damages for the loss incurred on the resale of resin recovered from the defendant. The central dispute was whether the resin delivered by Amcor Trading breached contractual terms, contained false claims, or was not of merchantable quality and fit for purpose.

The court considered several issues, including whether the resin supplied was fit for use in the manufacture of PVC pipes, whether it contained less than 99.6% poly vinyl chloride, whether the bags weighed 25 kilograms, and whether the resin was of merchantable quality. The court also examined claims that Amcor Trading induced the defendant to purchase the resin through false claims and whether the defendant relied on such representations. Furthermore, the case explored whether customary basis existed for an implied term and if there was a breach of s.52 of the Trade Practices Act 1974 (Cth).

The court found that Amcor Trading did not make the alleged representations and did not breach any contractual terms. The resin supplied was fit for use in manufacturing PVC pipes, and there was no evidence of significant defects or unsuitability. The resin contained poly vinyl chloride within acceptable limits, and the weight of the bags was within the contractual tolerance. The court dismissed the defendant's counterclaim and ruled in favor of Amcor Trading, awarding the balance of $589,086.50 plus interest and costs.