Clarke, Peter Geoffrey Webber v New Concept Import Services Pty Ltd

Case

[1981] FCA 217

27 Aug 1981

No judgment structure available for this case.

I N THE

FEDERAL

COURT OF AUSTRALIA )

)

VICTORIA

DISTRICT

REGISTRY

)

No.

VG.77 of 1 9 8 1

)

GENERAL

D I V I S I O N

)

-

BETWEEN

: PETER

GEOFFREY

WEBBER CLARKE

Prosecutor

-

AND

:

NEW CONCEPT

IMPORT

SERVICES

PTY. LTD.

D e f e n d a n t

O R D E R

JUDGE MAKING ORDER

:

DAVIESr J -

DATE

OF ORDER

:

27 A u g u s t 1 9 8 1

WHERE MADE

:

Melbourne

THE COURT ORDERS

THAT :

1.

The de fendan t be convic ted of

t h e offence charged.

2.

T h a t t h e fur ther

hear ing o f

t h e proceedin'gs

be

adjourned

t o Wednesday,

3 0 September

1981 ,

a t 9 . 3 0

a .m. .

I N THE FEDERAL COURT OF AUSTRALIA )

V I C T O R I A

DISTRICT

REGISTRY

)

No.

VG.77

of 1 9 8 1

)

GENERAL

D I V I S I O N

)

BETWEEN : PETER GEOFFREY WEBBER CLARKE

P rosecu to r

AND -

: NEW CONCEPT IMPORT SERVICES

PTY. LTD.

Defendant

REASONS FOR JUDGMENT

27 August

1981

DAVIES,

J .

T h i s i s a

prosecut lon

under

s .79

o f

t he

T

rade

P rac t i ces

Ac t

1 9 7 4

f o r

a

breach of

s.62(1)

of

t h e A c t .

The

i n f o r m a t i o n

l a i d

by Mr.

Peter

Geoffrey

Webber

Clarke ,

a n o f f i c e r

of

t he

T rade

Practices

Commission,

a g a i n s t N e w

Concept

Import

Servlces

Pty.

Ltd. ,

i n

s o

f a r as

i t is

r e l e v a n t ,

s t a t e s

:

" . . . t h a t

on

or

abou t t he 9 th day o f

May

1 9 8 0

i n

t h e

S t a t e o f

V i c t o r i a ,

NEW

CONCEPT

IMPORT

SERVICES

PTY.

LTD.

being

a

c o r p o r a t i o n w l t h l n

the

meanlng

of

the

Trade

P rac t l ces

Act

1 9 7 4

d l d

commit

a n

o f f e n c e

a g a i n s t s e c t i o n

7 9

by

c o n t r a v e n i n g s e c t l o n 6 2 ( l ) ( b )

of

t h e

s a i d

Act

i n t h a t ,

i n t r a d e or

commerce,

i t

d i d

s u p p l y

g o o d s

t h a t

a r e

o f

a

k i n d

l i k e l y

t o

b e

u s e d

b y

a

c o n s u m e r

s u c h

g o o d s ,

name ly ,

Hanna-Barbera

p l a s t i c

bubb-a- loons

bemg

novel t ies

des lgned

fo r

b lowing

ba l loon

l i ke

shapes

f rom

a

s o l u t i o n

c o n t a i n i n g

a c e t o n e

and

polyvinyl

a c e t a t e ,

be lng

of

a

kind

i n r e spec t

o f

wh

ich

t he re

w a s

i n

f o r c e

a

not ice

under

sec t ion

62(2D)

of

the

sa id

A c t

d e c l a r i n g t h e g o o d s t o b e u n s a f e g o o d s . "

,

.

. _., -.,.

.

..

. -_.

.

.

2.

Sec t ion

6 2 ( 2 D )

p r o v i d e s

:

"62.(2D)

Where

it

a p p e a r s

t o

t h e

M i n i s t e r

t h a t

goods

of

a

p a r t i c u l a r k i n d

w i l l o r

may

c a u s e i n - ~ u r y

t o persons

us

ing

the

goods

or

t o any

o

ther

persons

,

h e may,

by

no t i ce

unde g o o d s

r

h

i

s

hand

pub l i shed

i n goods."

t he

G a z e t t e ,

d e c l a r e

t h e

t o

be

unsafe

By

n o t i c e g a z e t t e d o n

1

4

June

1 9 7 9 ,

t h e M l n i s t e r d e c l a r e d

cer ta in

goods

to

be

unsafe

goods

and

s p e c i f i e d

t h e g o o d s a s

:

" N o v e l t i e s ,

s u c h

a s

' A p o l l o

C o l o r

B a l l o o n s ' ,

'Bl iwing

Bal loon ' ,

'Blobo

Bubb-a-Loons'

,

' B l o - i t '

,

'Loony

Ba l loony '

,

'Magic

Moon

B a l l o o n s ' ,

'SSS

B a l l o o n s '

a n d

' S u p e r

E l a s t i c

B u b b l e

P l a s t i c '

des igned

for

b lowing

ba l loon- l ike

shapes

f rom

a

s o l u t i o n

c o n t a l n i n g

a c e t o n e ,

p o l y v i n y l

ace t a t e

and/or

benzene."

It has Thomas Whit t ingslow f o r 8 cents each,

been

proved

tha t

in

May

1980

t h e

d e f e n d a n t

s o l d

t o

Mr.

6,500

Hanna-Barbera

p l a s t l c

bubb-a- loons,

each

containing

a

th in

b low

p ipe

o r

c y l i n d e r

approximately 3 inches

long

and

a

t u b e

c o n t a i n i n g

a

s o l u t i o n .

The

p ipe and

t h e

t u b e

of

s o l u t l o n w e r e a f f i x e d t o

a

c a r d

on

which

a p p e a r e d

t h e

i n s t r u c t i o n s

t h a t

t h e

u s e r

s h o u l d

o p e n

t h e

t u b e ,

squeeze a

b a l l

o f

p l a s t i c

s o l u t i o n

on

t o

the

end

of

the

p ipe ,

b l o w t h r o u g h t h e p i p e t o i n f l a t e t h e p l a s t i c

and

p m c h t h e

end

of

t h e p l a s t i c warnlng,

t o

seal

t h e

b a l l o o n .

On

each

k i t appeared

the

"NOT A GUM.

DO NOT CHEW.

DO NOT USE NEAR FIRE.

CONTAINS

:

POLY VINYL ACETATE, ACETONE ETHYL

ACETATE

PLASTIC

FORTIFIERS WITH

C E R T I F I E D COLOURS."

Evidence

was

g i v e n

t h a t

t h e

goods

had

been

acqulred

by

t h e

de fendan t

a t

22

c e n t s e a c h f o r

a

promotion

which

was unsuccess fu l

and

t h a t

t h e

r e m a l n d e r

o f

t h e

s tock

was

s o l d

t o

Mr.

Whit t ingslow

who

c o n d u c t e d

a m u s e m e n t s

a t

s h o w s

a n d

l i k e

o c c a s i o n s .

Mr.

Whit t ingslow used

these

goods,

as the defendant

unders

tood

he

would,

a s

c o n s o l a t i o n

or

g ive -away

p r l zes

i n

a

game

c a l l e d

"Laughing

Clowns",

i n

wh lch

each

con te s t an t

endeavoured

t o

p l ace

3 .

a b a l l i n t h e mouth of

a moving

clown'

S h e a d .

I f

s u c c e s s f u l ,

t h e

c o n t e s t a n t

r e c e i v e d

a

p r i z e

o f

s u b s t a n c e ;

i f

unsuccess fu l ,

c h i l d r e n

who

were approx ima te ly

c o n t e s t a n t s

r e c e i v e d

a

smal l

or

t oken

p r i ze .

Mr.

Whi t t i ngs low

had

t en

t ypes

o f

such

sma l l

p r i z e s ,

o n e

of which was the

bubb-a-loons

k i t .

Each

c o n t e s t a n t

p a i d 6 0 t h e e f f e c t t h a t e v e r y c h i l d

c e n t s

t o

e n t e r

t h e

game,

and

a

n o t i c e

was

d i s p l a y e d

t o

would

r e c e i v e

a

p r i z e .

The

f i r s t

q u e s t i o n

IS

w h e t h e r

t h e

s o l u t i o n

i n

t h e

t u b e s

conta ined ,

"ace tone ,

po lyvinyl

ace ta te

and/or

benzene" .

Each

k i t s p e c i f i c a l l y d e s c r i b e d

its

c o n t e n t s as

c o n t a m i n g ,

" p o l y v i n y l

a c e t a t e ,

a c e t o n e ,

e t h y l a c e t a t e ,

p l a s t i c

f o r t i f i e r s " .

An

admission was made t o Mr.

Clarke by Mr.

Veale , who was a u t h o r i s e d

to

speak

on behal f

o f

t h e

d e f e n d a n t ,

t h a t

t h e

k i t s

i n d i c a t e d

t h a t

t h e

t u b e s

c o n t a i n e d

p o l y v i n y l

a c e t a t e

a n d

a c e t o n e ,

e t h y l a c e t a t e

and

t h a t

t h e y

a c c o r d i n g l y

would

a p p e a r

t o

f a l l

w i t h i n

t h e

terms

o f

t h e

Minister's

banning

order .

I n

a d d i t i o n ,

e v i d e n c e

was

given by

an

a n a l y t i c a l

c h e m i s t ,

Mr.

K.

Maurer ,

tha t

he

had

a n a l y s e d

t h e

s o l u t i o n

i n

t h e

t u b e s

o f

t h r e e

k l t s ,

E x h i b i t

J ,

g i v e n

t o

him

and

t h a t

t h e

s o l u t l o n

i n

e a c h

k l t

i n

each

t ube

con ta lned

po lyv iny l

ace t a t e ,

a ce tone ,

and

e thy lace ta t e .

In

h i s

f i n a l

a d d r e s s ,

Mr.

T.

Ginnane ,

counse l

for

the

defendant ,

s u b m i t t e d

t h a t

there was n o

p r o o f

t h a t

t h e

k i t s ana lysed

by

Mr.

Maurer

were

p a r t

o f

the

goods

so ld

by

t he

de fendan t

t o

Mr.

Whitt ingslow.

B u t

t h e r e

a r e

i n

e v i d e n c e ,

as

Exh ib l t

F ,

f ou r

k i t s which were produced

by

Mr.

C l a r k e

t o

Mr. Veale and admit ted

by Mr. Veale t o have

been

examples

o f

the

goods

so ld

by

the

d e f e n d a n t

t o

Mr.

Whi t t i ngs low

in

May

of 1 9 8 0 .

Orie o f

t hose

k i t s

c o n t a i n s

a

n o t e

o r commas,

endorsement

which,

a f t e r

a

l e t t e r

w h i c h

a p p e a r s

i n

i n v e r t e d

s t a t e s

:

"SAMPLE COLLECTED FROM I N G R I D B E Z J A K O F

WHITTINGSLOW NOMINEES P/L AT 9 . 4 0 am 3 MARCH 1981."

That

endorsement

1s fol lowed b y

w h a t

a p p e a r s

t o

b

e

t h e

i n i t i a l s

of a Mr. Clarke and Mr. Thomas Whitt ingslow

and

a

f u r t h e r

se t of

f i g u r e s

i n

i n v e r t e d

commas,

i n

t h i s

c a s e ,

"TWGS".

A s t h a t

k i t

4.

was

produced

by

Mr.

Clarke

t o

Mr.

Vea le ,

t oge the r

w l t h

a

s t a t emen t made

by

Mr.

Whitt ingslow,

i t

can

ha rd ly be doub ted t ha t

t h e

s r g n a t u r e s

C l a r k e

and

Whi t tmgs low

a re

t hose

o f

Mr.

C la rke ,

t h e

o f f i c e r

o

f

t h e

T r a d e

P r a c t l c e s

Commission

who

gave

evidence

i n

t h e s e

p r o c e e d i n g s ,

and

of

M r .

Whit t ings low,

the

purchaser

o f

f rom admit ted by Mr. Veale

the

de fendan t .

I n

any

even t ,

t he

k i t s

were

t he

goods

to

have

been

examples

of

the

goods

sold.

The

t h r e e

k i t s

be ing

Exh ib l t

J ,

which

were

analysed

by

Mr.

Maure r ,

appea r

t o

be

i den t i ca l

w

i

th

t he

k i t s

i n

E x h i b l t

F,

even

t o t h e t h a t I have set out

e x t e n t

t h a t

e a c h

h a s above

e n d o r s e d

upon

i t

a

n o t e

similar

t o

and

on

whrch

t h e

s i g n a t u r e s

o f

a

Mr.

Clarke

and

a

Mr.

Whi t t i ngs low

a l so

appea r ,

wh ich

s igna tu res

appea r

be

i den t i ca l .

t o

These

t h ree

k i t s ,

E x h i b i t

J ,

were

r ece ived

i n

ev idence

w

i

thou

ob jec t lon .

t

Mr.

G i n n a n e

s t a t e d

t h a t

he had no d e c i d e d o n t h e b a s i s o f t h e e v i d e n c e b e f o r e t h e c o u r t , n o t o n t h e

o b j e c t i o n

t o

t h e

t e n d e r .

The

case

mus t

t he re fo re

be

bas i s

o f o b j e c t i o n

ev idence

as it may

have

been

i f o b j e c t i o n

had

been

t a k e n

and

i f

t h e

h a d

b e e n

u p h e l d .

If

objec t lon

had

been

t a k e n

t o

t h e

t e n d e r ,

i t

may

have

been

proper

f o r

t h e

C o u r t

t o

i n s l s t

upon

s t r i c t

p r o o f

t h a t

t h e

goods

analysed

by

Mr.

Maurer

were

goods

sold

by

the

defendant

to

Mr.

Whitt lngslow.

O r it may

have

been

proper

to

requi re

ev idence

to

be

ca l led

compar lng

the

analysed

k i t s and

the

wr i t t en

endor semen t s

w l t h

t h e

k i t s

i n

Exh ib i t

F.

However,

as

o b j e c t i o n

was

n o t

t a k e n

t o

t h e

t e n d e r ,

it

is

n e c e s s a r y

t h a t

I should

compare

the

k i t s I n

E x h i b i t

J

w i t h

t h e

k

i

t

s

i n E x h l b i t

F

t o a s c e r t a i n w h e t h e r t h e y a r e i d e n t i c a l

a n d

whether

t he re fo re

t hey

were

pa r t

o f

t he

goods

so ld

by

t h e

d e f e n d a n t

t o

Mr.

Whit t ingslow o r conta ined

ident ica l

components .

I may have

r ega rd

t o

t he

wr l t t en

and

pr lnted

endorsements

on

the

k i t s .

Hearsay

evidence,

i f

n o t

o b j e c t e d

t o ,

may

be

r e l i ed

upon .

I n t h l s c a s e ,

it

is proper

to

have

regard

to

what

i s

wr i t ten

on

t h e

e x h i b i t ,

f o r

i f

ob jec t lon

had

been

taken ,

Mr.

Clarke or Mr.

Whi t t ings low,

ne

i

ther

o f

whom

had

been

released,

could

have

been

r e c a l l e d

t o

g i v e f u r t h e r

e v i d e n c e .

5 .

As

t h e

g o o d s

E x h i b i t s

i n

F

and

3

appea r

t o

be

i d e n t i c a l

p r o p r i e t a r y

g o o d s ,

a s

t h e

g o o d s

i n

E x h i b i t

J

c o n t a i n

a

hand-wr i t t en

endor semen t

s imi l a r

t o

t ha t

appea r ing

on

one

of

the

k i t s i n Exh ib i t

F ,

and

as the

hand-wr i t t en

endor semen t s

s t a t e

t ha t

t he

goods

were

co l l ec t ed

from

Ingrid

Bezjak

of

Whit

t

ingslow

Nominees

Pty.

Limited

a t 9.40 am on 3 March 1981

and

conta ln

s i g n a t u r e s

which

appear

to

be

the

s igna tures

o f

Mr.

Clarke

and

Mr.

Whitt ingslow,

I

am

s a t i s f l e d beyond

r easonab le doub t

t he

k i t s

t h a t were analysed by Mr.

Maurer

were

some

o f

t h e

k i t s

s o l d

by

t h e

d e f e n d a n t

t o

Mr.

Whitt ingslow.

I

am

t h e r e f o r e

s a t i s f i e d

beyond

r easonab le

doub t

t ha t

t he

so lu t ion

i n

t he

goods

so ld

by

t h e d e f e n d a n t t o

Mr.

Whi t t i ngs low in

May

1980 conta ined po lyvinyl

a c e t a t e ,

a c e t o n e

and

e t h y l a c e t a t e .

Mr.

G i n n a n e

f u r t h e r

s u b m i t t e d

t h a t

t h e

t e r m s

o

f

t h e

d e c l a r a t i o n

g a z e t t e d

on

1 4 June

1979 were

so

u n c e r t a i n

t h a t

t h e

d e c l a r a t i o n

was

vo ld

o r ,

i f

i t d id

have

a

meaning,

t h a t

i t

r e q u l r e d

t h e

s o l u t l o n

c o n t a i n

b o t h

a c e t o n e

and

benzene.

The

term

"and/or"

is

n o t

a

r e c o g n i s e d

d i c t i o n a r y

term.

Never the l e s s

i t

i s

a

term

which is in

popular

use .

It

p r o v i d e s

f o r

t h e

s i t u a t i o n

whereby

t h e

c o n j o l n e d

terms

may

be

a p p l i e d

e i t h e r

c u m u l a t i v e l y

o r

I n

t h e

a l t e r n a t i v e .

It

f o l l o w s

t h a t

w h a t e v e r

d i f f i c u l t i e s

t h e r e

may

be

w i t h

t h e

t e r m s

o f

t h e

d e c l a r a t i o n ,

t h e

d e c l a r a t i o n

d o e s

n o t

r e q u i r e

t h a t

t h e

s o l u t i o n

m u s t

contain

benzene.

The

term

"and /o r "

appea r s

be fo re

t he

word

"benzene".

The

word

"o r "

app l l e s t o i n t e r p r e t a t i o n o f t h e d e c l a r a t l o n t h a t

t he

t e rm

"benzene" .

Nor

i s

I t ,

I

t h i n k ,

a

proper

t h e

s o l u t i o n

is

t o c o n t a i n

a l l

t h r e e

or

a l t e r n a t i v e l y

o n l y

o n e

o f

t h e

t h ree

e l emen t s .

The

te rm

"and/or"

sugges ts

t h a t

a

combinat ion

of

two

e lements

i s

p e r m l s s l b l e .

I

r e a d

t h e

e x p r e s s l o n

a

s

r e q u i r i n g

t h a t

t h e

s o l u t i o n

c o n t a i n

a l l

t h ree

e l emen t s ,

a ce tone ,

po lyv iny l

ace t a t e

and

benzene ;

o r

a l t e r n a t l v e l y ,

t h a t

i t

c o n t a i n

a c e t o n e

and

e l t h e r

p o l y v m y l

a c e t a t e

o r

benzene.

I

t h l n k

t h a t

t h i s

i n t e r p r e t a t i o n

i s

c l e a r

and

t h a t

it

is no t

necessa ry

t o

cons ide r

wha t

migh t

be

t he

6 .

consequence i f

t h e d e c l a r a t i o n

were

e i t h e r

u n c e r t a l n

or

ambiguous

i n t h i s

r e g a r d .

When

t h e d e c l a r a t i o n

i s

r e a d

i n

t h i s

s e n s e ,

t h e

subjec t

goods

,

which

conta ln

bo

th

ace tone

and

po

lyvinyl

ace ta te ,

come

w i t h i n t h e d e s c r i p t i o n o f t h e g o o d s o f w h i c h t h e d e c l a r a t i o n

speaks.

T h e

s u b j e c t

g o o d s

w e r e

n o v e l t i e s

d e s i g n e d

f o r

b l o w i n g

bal loon-l ike

shapes

f rom

a

s o l u t i o n c o n t a i n i n g a c e t o n e ,

p o l y v i n y l

acetate

and/or

benzene.

No

witness

s a i d

t h a t

t h e

s u b l e c t

g o o d s

were

of

the

same

kind

as t h e named

n o v e l t i e s .

N e v e r t h e l e s s ,

a s

no

issue

was

r a i s e d

by

Mr.

G i n n a n e

r e s p e c t i n g

t h i s ,

a s

Mr.

V e a l e ' s

r e c o r d

of

i n t e r v i e w

c o n t a i n s

a n t e r m s

a d m i s s i o n

t h a t

t h e

s u b j e c t

g o o d s

" . . . w o u l d

a p p e a r

t o

f a l l

w l t h l n

t h e

o f

t h e

Minister's

banning

order ,

.. ." and a s

o n e

o

f

t h e

s p e c i f i c

g o o d s

mentioned

i n t h e

d e c l a r a t i o n

i s

"bubb-a-loons",

I

c o n c l u d e

t h a t

i t is d e c l a r a t i o n .

b e y o n d

d o u b t

t h a t

t h e

g o o d s

s a t i s f i e d

t h e

terms

o f

t h e

It

was

fu r the r

submi t t ed

by

Mr.

G i n n a n e

t h a t

t h e

t r a n s a c t i o n

between

the

defendant

and

M r .

W h i t t l n g s l o w

d i d

n o t

f a l l

w i t h i n

t h e

t e r m s

o

f

s . 6 2 ( l ) ( b )

w h l c h

p r o v i d e s

:

" 6 2 . ( 1 )

A

c o r p o r a t i o n

s h a l l

n o t ,

t r a d e

i n

or

commerce ,

supply

goods

tha t

a re

in tended

to

be

used ,

or

a r e

o f

a

k i n d

l i k e l y

t o

b e

u s e d ,

b y

a

consumer

i f t he

goods

a r e

o f

a

kind -

.....

( b )

i n r e s p e c t of

which

t h e r e

is i n

f o r c e

a

n o t i c e

under

t h i s

s e c t i o n

d e c l a r i n g

t h e

g o o d s

t o

b e

unsafe

goods."

Mr.

Ginnane

submi t ted

tha t

the

sublec

t

goods

were

no

t

in tended

to

be

used

and

were

not

of

a

k l n d

l i k e l y

t o

b

e

u s e d

b y

a

consumer.

He

s u b m i t t e d

t h a t

t h e

r e f e r e n c e

t o

a

"consumer"

requi res

one

to

have

r ega rd

t o

t he

terms o f s.4B

which

p rov ides

t ha t

a

person

s h a l l

be

t aken

t o

have

acqu i r ed

pa r t l cu la r

goods

a s

a consumer

If

and

o n l y i f t h e d e t a i l e d p r o v i s i o n s o f t h e s e c t i o n a r e

met.

1 .

I would

n o t

d i s p u t e

t h a t

t h e

u s e

o f

t h e

term

"consumer"

i n

s . 6 2 ( 1 )

r e q u r r e s

o n e

t o

h a v e

r e g a r d

t o

agd

t o

g l v e e f f e c t

t o

t h e

terms

of

s . 4 B .

Mr.

Ginnane,

however ,

then

sought

to

draw

an

i n f e r e n c e

t h a t

t h e

terms

o f

s . 4 B

app ly

on ly

t o

commerc la l

t r a n s a c t i o n s

and

n o t

t o

c i r c u m s t a n c e s

s u c h

a

s

t h o s e

i n

w h i c h

Mr.

Whl t t i ngs low

d i s t r ibu ted

t he

sub jec t

goods

as

p r i zes ,

wh ich

c i rcumstance

he

sa id

d

id

no t

amount

t o

a

commerc ia l

t ransac t ion .

M r .

Ginnane

submitted;

"...it 1s c l e a r

p a r l i a m e n t

d i d

n o t

i n t e n d

t o r e g u l a t e g i f t s

o r

g r v e

aways."

Mr.

G i n n a n e

s o u g h t

t o

d r a w

t h i s

i n f e r e n c e

f i r s t

f r o m

t h e

d e f i n i t i o n

o f

t h e

word

" a c q u i r e "

i n

s . 4 ( 1 ) which

provides

:

" 4 . ( 1 )

I n

t h i s

Act,

u n l e s s

t h e

c o n t r a r y

i n t e n t i o n

appears

-

' a c q u i r e '

i n c l u d e s

-

( a )

i n

r e l a t i o n

t o

g o o d s

-

a c q u i r e by

way

of

purchase,

exchange

or

t a k i n g

o n

l e a s e ,

o n h i r e

o r

on hire-purchase;" .

B u t

t h i s d e f i n i t i o n , i n

my

view,

i s n o t

a

l i m i t i n g d e f i n i t i o n b u t

r a t h e r

a

d e f i n i t i o n

which

expands

the

ordinary

meaning

of

the

word

t o

i n c l u d e

m a t t e r s

s u c h

as

l e a s i n g

and

h i r l n g ,

which

i n t h e

ord

inary

use

o

f

l anguage

may

n o t c o n s t l t u t e a n a c q u i s i t r o n .

The t e rms and r t is clear f rom

"acqu i re"

and

" supp ly"

a r e

de f ined

rn

a

similar manner,

p rov i s ions

such

a s

t hose

o f

s . 65

t ha t

t he

term

"supply"

i s i n t e n d e d

t o

comprehend

t h e supp ly o f goods

to

a

person who

is merely a

p a s s r v e

r e c i p i e n t .

T h e r e f o r e ,

no

i n f e r e n c e

c a n

be

drawn

from

the

u s e

i n

s . 4 B

o f

t h e

word

"acquired",

which

1s indeed a common word of the Englrsh

language

w i t h

a

very wide meaning.

M r .

Glnnane

next

sought

to

d

raw

h

is

in ference

f rom

the

re fe rence

i n s . 4 B

t o a

" p r i c e " ,

a

term

of

commerce.

B u t t h e

s e c t i o n

makes

p r o v l s i o n

f o r

t h e

c a l c u l a t i o n

o f

a

" p r i c e "

i n a

case

where

the

r e l e v a n t

t r a n s a c t i o n

d o e s

n o t

i t se l f

d e t e r m i n e

t h e

" p r i c e " .

Of

t h e s e

p r o v i s i o n s ,

t h e

terms

of

paragraph

4 B ( 2 ) ( d )

a p p l y

e q u a l l y

8.

a s w e l l impl ica t ion

t o

a

g i f t

a s

t o

a

commerc ia l

t ransac t ion .

Therefore

no

,

can

be

d rawn

from

t h e

u s e

o f

t h e

word

" p r i c e "

l imi t ing

t he

o rd lna ry

mean lng

of

the

t e rms

used

in

s.4B.

Mr.

Ginnane

next

sought

to

d

raw

an intended

in ference

f rom

the

p rovis ions

o f P a r t

V

which he

said

were

to

apply

only

to

commercial

t r a n s a c t i o n s .

A s

I

have

po in t ed

ou t ,

s.65

d e a l s

s p e c i f i c a l l y

with

t h e

s u p p l y

o f

i n s o l i c i t e d

g o o d s

and

s.54

d e a l s

w i t h

t h e

o f f e r

of

g i f t s ,

p r i z e s

o r

o t h e r

f r e e

i t e m s .

I

see

n o t h i n g

i n

t h e

p r o v i s i o n s

o

f

P a r t

V

w h i c h

j u s t l f y

t h e

r e a d i n g

down

of

t h e

terms

o f

s.4B

o r ,

f o r t h a t

matter,

wh ich sugges t t ha t t he t ype

o f

business

which

was

conducted

by

Mr. Whit t ings low's company was

no t

i n t ended

t o

be

comprehended

by

t he

p rov i s ions

o

f

D iv i s lon

1

o f P a r t

V.

Mr. Ginnane

next

submit ted

that

the

subject

goods

had

no

va lue

because

it was

u n l a w f u l

t o

s u p p l y

them i n

t r a d e

o r commerce.

He

subml t t ed

t ha t

t he

p rov i s lons

o f

s.4B

t h e r e f o r e

d i d

n o t

a p p l y .

A s c e n t s

the goods were so ld by

the

defendant

to

Mr. Whlttingslow f o r 8

e a c h ,

i t

seems

d i f f i c u l t

t o

c o n c l u d e

t h a t

i n

f a c t

t h e y

had

no

value.

B u t

even

i f

t h e i r

v a l u e

was

n i l ,

t h a t

would

n o t

p r e c l u d e

t h e

o p e r a t i o n

o f

S .4B.

Sec t ion

4B

prov ides ,

i n t e r

a l i a ,

t h a t

:

"4B. (1) For the

purposes

o f

t h i s

A c t ,

u n l e s s

t h e

c o n t r a r y i n t e n t l o n a p p e a r s

-

( a )

a

pe r son

sha l l

be

t aken

have

t o

acqu i r ed

p a r t i c u l a r

g o o d s

a s

a

consumer

i f , and

only

i f -

(i)

t h e

p r i c e

o f

t h e

goods

did

not

exceed

the

p re sc r ibed amoun t ; " .

That i s $15,000.

Even

i f

t h e

p r i c e

b e

deemed

t o

b e

n i l

b e c a u s e

the

va

lue

o

f

t he goods

was

n l l , t h i s p r o v i s i o n

was

s a t i s f i e d , f o r

t h e p r i c e

n i l d id

not

exceed

the

prescr

ibed

amount

.

I t

fo l lows ,

i n

my

o p i n i o n ,

t h a t

t h e r e

was

a

supp ly

by

t he

d e f e n d a n t

t o

Mr.

Whi t t ings low

of

goods

tha t

were

in tended

to

be

9.

used and which

were

of

a

k ind

l l ke ly

t o

be

u sed

by a consumer.

It was

n o t

s u g g e s t e d

t h a t

t h e

supply

was

n o t

a

s u p p l y

i n

t h e

cour se of

t r a d e

o r

commerce

and

c l e a r l y it was.

The

supply was

o f

goods

i n

r e spec t

o f

wh

lch

t he re

was

i n

f o r c e

a

not lce

under

s.62

d e c l a r i n g

t h e

goods

t o

unsafe

be

goods.

There

was,

t h e r e f o r e ,

a

breach of

s.62(1).

T h e r e f o r e ,

t h e d e f e n d a n t

w l l l

be

convicted.

I cer t i fy that

this and the K..

.

preceding pages are a true copy of the Reasons for Judgment herein of

h i s Honour Mr.

Justice Davies .

........ ...... &LW+,

ABB6EiBE

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