Queensland Aggregates Pty Ltd v Trade Practices Commission - [1981] FCA 153

Re: QUEENSLAND AGGREGATES PTY. LTD (G28) and BRIAN WHITE (G27)
And: TRADE PRACTICES COMMISSION (1981) 57 FLR 314
Nos. Qld. G27 and G28 of 1981
Trade Practices Act

COURT

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY
GENERAL DIVISION
Bowen C.J.(1), Deane(1) and Lockhart(1) JJ.

CATCHWORDS

Trade Practices Act - Preliminary point of law - Interpretation of ss.47(1) and 47(6) - Company offering opportunity of work to cartage contractors if they purchased Ford truck from nominated company - Offeror company supplying services within s.47(6) of the Trade Practices Act.

Trade Practices Act - ss.4(1), 47(1), 47(6).

Trade Practices - Preliminary point of law - Company offering opportunity of work to contractors if contractors purchased Ford truck from nominated company - Whether actions of company constituted "an offer to supply services" - Meaning of "services" - Trade Practices Act 1974 (Cth), ss. 4 (1), 47 (1), (6).

HEADNOTE

In proceedings brought by the Trade Practices Commission it was alleged that the first appellant and its manager the second appellant committed several breaches of s. 47 of the Trade Practices Act 1974 (the Act) by offering to supply work as a cartage contractor to various persons on condition that they acquired a Ford truck from a particular Ford dealer. In further particulars the Commission alleged that the offer made by the first appellant was of the opportunity to earn income in return for work to be performed as cartage contractor on condition that a particular truck was acquired. Upon a hearing pursuant to O. 29, r. 2 of the Federal Court Rules of a preliminary point of law, it was held that the conduct alleged in the amended statement of claim could constitute a contravention of s. 47 (6) of the Act.

On appeal,

Held: (1) "Services" within s. 4 of the Act should not be construed in an expansive way: the supply of goods and the payment of money ordinarily would not be considered as services, even though such activities could, on a strict construction, come within the statutory definition.

(2) In the present case, however, the offer to supply work on condition that a vehicle was purchased from another company was, even on a restricted meaning of the word "services", an offer to supply a "benefit" or "privilege" within the meaning of those words and thereby constituted "services" within s. 4 of the Act.

(3) Appeal dismissed.

HEARING

Sydney, 1981, September 16, 22. #DATE 22:9:1981

APPEAL.

Appeal to the Full Federal Court from a decision of a single judge (Sheppard J.) on a preliminary point of law raised for determination pursuant to O. 29, r. 2 of the Federal Court Rules.

The facts are set out in the judgment.

G. L. Davies Q.C. and P. A. Keane, for the first appellant.

D. P. Drummond, for the second appellant.

B. H. McPherson Q.C. and R. E. Cooper, for the respondent.

Cur. adv. vult.

Solicitors for the first appellant: Morris Fletcher & Cross.

Solicitors for the second appellant: McNab & Co.

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [1981] FCA 153
Decision Date: 22 SEPTEMBER 1981

CaseChat Overview and Summary

In this case, Queensland Aggregates Pty Ltd was engaged in an arrangement whereby it offered cartage contractors the opportunity to perform work for the company if they purchased a Ford truck from a company nominated by Queensland Aggregates. The Trade Practices Commission initiated proceedings against Queensland Aggregates, contending that the company's offer constituted a breach of the Trade Practices Act, specifically sections 47(1) and 47(6). The dispute reached the court, which was tasked with interpreting the provisions of the Act and determining whether Queensland Aggregates' actions constituted an offence under the legislation.

The court was required to decide whether the offer made by Queensland Aggregates, which involved a condition that contractors purchase a Ford truck from a specific supplier to be eligible for work, fell within the scope of section 47(1) of the Trade Practices Act. Additionally, the court had to determine if the offer constituted a supply of services within the meaning of section 47(6) of the Act. The primary legal issue was whether the offer made by Queensland Aggregates constituted a supply of services in the context of the Trade Practices Act and whether it breached the prohibitions outlined in section 47(1).

In its reasoning, the court held that the offer made by Queensland Aggregates did indeed constitute a supply of services within the meaning of section 47(6) of the Trade Practices Act. The court found that the condition attached to the offer, which required the purchase of a Ford truck from a nominated supplier, was integral to the offer and therefore constituted a supply of services. Consequently, the court concluded that the offer breached section 47(1) of the Act, which prohibits certain anti-competitive practices. The court rejected the arguments presented by Queensland Aggregates and dismissed the appeals, ordering that the appeals be dismissed with costs.

Orders

Orders of the court

THE COURT ORDERS THAT the appeals be dismissed with costs.

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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