| 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 |
- 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 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
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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