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

Case [1981] FCA 217


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

Details
AGLC
Clarke, Peter Geoffrey Webber v New Concept Import Services Pty Ltd [1981] FCA 217
Case
[1981] FCA 217
Decision Date

CaseChat Overview and Summary

The case of Clarke v New Concept Import Services Pty Ltd was heard in the Federal Court of Australia. The plaintiff, Peter Geoffrey Webber Clarke, brought a prosecution against the defendant, New Concept Import Services Pty Ltd, for a breach of section 62(1) of the Trade Practices Act 1974. The defendant was accused of supplying goods that were of a kind likely to be used by a consumer, in contravention of a notice under section 62(2D) of the Act, which declared certain goods to be unsafe. The goods in question were Hanna-Barbera plastic bubb-a-loons, which were sold to Mr. Thomas Whittingslow, who intended to use them as prizes in a game called "Laughing Clowns."

The court had to decide whether the solution in the plastic bubb-a-loons contained acetone, polyvinyl acetate, and/or benzene, as required by the Minister's banning order. Additionally, the court had to determine if the transaction between the defendant and Mr. Whittingslow fell within the terms of section 62(1)(b), which prohibits the supply of goods that are of a kind likely to be used by a consumer if there is a notice in force declaring the goods to be unsafe.

The court found that the solution in the plastic bubb-a-loons did contain acetone, polyvinyl acetate, and ethyl acetate, which were identical to the components mentioned in the Minister's banning order. Furthermore, the court determined that the goods supplied by the defendant to Mr. Whittingslow were intended to be used and were of a kind likely to be used by a consumer. Consequently, the court concluded that there was a breach of section 62(1), and the defendant would be convicted.

The court ordered that the defendant be convicted of the offence charged and that the further hearing of the proceedings be adjourned to Wednesday, 30 September 1981, at 9:30 a.m.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.