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Consumer Protection and the Trade Practices Act 1974-1975 (CTH)

Published online by Cambridge University Press:  24 January 2025

John Goldring
John Goldring*
Affiliation:
Supreme Court of New South Wales; Supreme Court of Papua New Guinea and of the Supreme Court of the Australian Capital Territory; Australian National University
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Abstract

While State legislatures have responded, to some extent, to pressure for greater legal protection of consumers, consumer protection had never been an area of legislative activity on a national level until the passing of the Trade Practices Act 1974-1975 (Cth). Mr Goldring examines the effect of the Trade Practices Act 1974-1975 (Cth) on the area of consumer protection in Australia, and notes that the Act, in addition to introducing regulation of restrictive trade practices on a scale beyond that previously experienced in Australia, includes sweeping legislative innovations aimed to protect consumers. The Act is shown to prohibit certain types of undesirable commerical activity and gives to a wide range of potential plaintiffs the right to take action for damages and injunctive relief. The terms implied by law into contracts of sale of goods and hire-purchase are extended and similar terms are included in other types of contract.

Type
Research Article
Information
Federal Law Review , Volume 6 , Issue 2 , June 1975 , pp. 287 - 339
Copyright
Copyright © 1975 The Australian National University

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References

1 Levine, “Aspects of the Trade Practices Bill 1973” (1973) 47 A.L.J. 679Google Scholar; Baxt, Brunt, “The Murphy Trade Practices Bill: Admirable Objectives, Inadequate Means” (1974) 2 Australian Business Law Review 1Google Scholar.

2 Trebilcock, “Consumer Protection in the Affluent Society” (1970) 16Google Scholar McGill Law Journal 263 provides a background to the ideological and philosophical problems underlying the moves for legal protection for consumers. He refers to a number of North American writings on the same subject.

3 N.S.W.Consumer Protection Act 1969-1972; Vic. Consumer Affairs Act 1972; S.A. Consumer Credit Act 1972-1973 and Consumer Transactions Act 1972-1973 and Prices Act 1948-1974; Qld Consumer Affairs Act 1970-1974; W.A. Consumer Affairs Act 1971-1975; Tas. Consumers Protection Act 1970; A.C.T. Consumer Affairs Ordinance 1973.

4 An anonymous student, quoted in Layton and Holmes, “Consumerism-A Passing Malaise or a Continuing Expression of Social Concern?” (1974) 46 Australian Quarterly (No. 2) 6, 15.

5 S.Deb. 1973, Vol. 57, 1013-1014.

6 Layton and Holmes, op.cit. provide a general review of this question.

7 Cayne and Trebilcock, “Market Considerations in the Formulation of Consumer Protection Policy” (1973) 23 University of Toronto Law Journal 396.

8 (1971) 124 C.L.R. 468.

9 Taylor, “The Corporations Power: Theory and Practice” (1972) 46 A.L.J. 5Google Scholar; Lane, “Can There be a Commonwealth Companies Act?” (1972) 46 A.L.J. 407Google Scholar; Frankel, Taylor, “A 1973 National Companies Act?-The Challenge to Parochialism” (1973) 47 A.L.J. 119Google Scholar; Lane, The Australian Federal System (1972) 99-118CrossRefGoogle Scholar; Lane, “Federal Control of Trading Corporations” (1974) 48 A.L.J. 233Google Scholar.

10 Explanatory memorandum circulated with the Trade Practices Bill 1973.

11 Lumb, Ryan, The Constitution of the Commonwealth of Australia Annotated (1974) 331-336Google Scholar.

12 Clyde Engineering Co. Ltd v. Cowburn (1926) 37 C.L.R. 466; Ex parte McLean (1930) 43 C.L.R. 472, especially per Dixon J. at 483.

13 Infra p. 309.

14 R. v. Trade Practices Tribunal; Ex parte St George County Council (1974) 2 A.L.R. 371. However, the majority so held on different grounds: Gibbs J. on the basis that the Commonwealth had no power to legislate in respect of the Council; but His Honour was also in agreement with McTiernan and Menzies JJ. who put their decision on the basis that as a matter of construction the Act did not apply to it. Menzies J.'s reasoning would, it seems, also lead to the conclusion that the Council was not a “trading corporation” for constitutional purposes.

15 Following the Commercial Transactions (Miscellaneous Provisions) Act 1974 this is no longer possible, relative to “consumer sales” in N.S.W.

16 Ss. 68, 71(1): Infra pp. 310-313.

17 Bank of N.S.W. v. The Commonwealth (1948) 76 C.L.R. 1 (High Court) (1949) 79 C.L.R. 497 (Privy Council).

18 E.g. Young & Marten Ltd v. McManus Childs Ltd [1969] 1 A.C. 454; Helicopter Sales (Australia) Pty Ltd v. Rotor-Work Pty Ltd (1974) 4 A.L.R. 77.

19 The first legislation is already in force: the South Australian Consumer Credit Act 1972-1973 and Consumer Transactions Act 1972-1973 supersede the traditional forms of consumer credit.

20 Commencing with Australian Steamships Limited v. Malcolm (1914) 19 C.L.R. 298, especially at 335.

21 There is no general work on Australian consumer protection law. But see The Consumer and the Law (1973, Committee for Post-Graduate Studies, Department of Law, University of Sydney); (1971-1972) 4 Adelaide Law Review 1-129, 423-450; Nielsen, “Consumer Protection” (1971, Committee for Post-Graduate Studies, Department of Law, University of Sydney); Taperell, Vermeesch and Harland, Trade Practices and Consumer Protection (1974); Hall, “The Consumer Affairs Act (Qld), 1970 to 1974” (1974) 8 University of Queensland Law Journal 131.

22 FollowingDonoghue v. Stevenson[1932] A.C. 562, 599.

23 E.g. Grant v. Australian Knitting Mills Ltd [1936] A.C. 85; (1935) 54 C.L.R. 49; Davie v. New Merton Board Mills Ltd [1959] A.C. 604; Morison, , Sharwood, Phegan, Cases on Torts, (4th ed. 1973) 203Google Scholarff; Greig, Sale of Goods (1974) 246ffGoogle Scholar.

24 Fleming, The Law of Torts (4th ed. 1971) 121-132Google Scholar; Morison, Sharwood, Phegan, op. cit. 699-734Google Scholar.

25 O'Connor v. S.P. Bray Ltd (1936-1937) 56 C.L.R. 464, per Dixon J. 477-478;Fleming, op. cit. 122.

26 Note the effect of N.S.W. Sale of Goods Act 1923-1974, s. 64(6);George Monro Ltd v. American Cyanamid and Chemical Corporation [1944] K.B. 432;Godley v. Perry[1960] 1 W.L.R. 9; Bennett, “The Liability of the Manufacturers of Thalidomide to the Affected Children” (1965) 39 A.L.J. 256;Thompson v. Distillers Co. (Bio-Chemicals) Ltd [1968] 3 N.S.W.R. 3; affirmed [1971] A.C. 458; Hague Conference on Private International Law, Report of the Special Commission on Product Liability in the Conflict of Laws (1971); UN Commission on International Trade Law, Liability for Damage caused by Products Intended for or Involved in International Trade (1975).

27 E.g. Generally: N.S.W. Consumer Protection Act 1969-1972, ss. 35-41; Vic. Consumer Affairs Act 1972, ss. 58-61A. Food: N.S.W. Pure Food Act 1908-1975; Vic. Health Act 1958; Qld Health Act 1937-1974; S.A. Food and Drugs Act 1908-1972; W.A. Health Act 1911-1973. Drugs: National Health Act 1953-1975 (Cth), s. 85; N.S.W. Poisons Act 1966-1974; Vic. Poisons Act 1962, Health Act 1958; Qld Health Act 1937-1974; S.A. Narcotic and Psychotropic Drugs Act 1934-1974; W.A. Health Act 1911-1973; Tas. Poisons Act 1971. Footwear: Vic. Consumer Affairs Act 1972, ss. 42-49. Furniture: N.S.W. Consumer Protection Act 1969-1972, s. 28; Vic. Consumer Affairs Act 1972, ss. 50-57. Weights and Measures: N.S.W. Weights and Measures Act 1915-1974; A.C.T. Weights and Measures (Packaged Goods) Ordinance 1970-1973 (the two last mentioned statutes contain the “Uniform Packaging Code”).

28 N.S.W.Consumer Protection Act 1969-1972, ss. 7, 15, 16; Vic. Consumer

Affairs Act 1972, ss. 5, 8; Qld Consumer Affairs Act 1970-1974, ss. 5, 18; W.A. Consumer Affairs Act 1971-1975, ss. 6, 16; Tas. Consumers Protection Act 1970, s. 3; A.C.T. Consumer Affairs Ordinance 1973, ss. 4, 12. South Australia is the exception: by ss. 18a and 18b of the Prices Act 1948-1974 (which were added in 1970) the Prices Commissioner is vested with powers to protect “consumers'' (a term defined in the Act). There is no separate Consumer Council or Bureau in South Australia. In “The Administration of Consumer Affairs” (1974) 33 Public Administration 307, Mr Hewitt, the N.S.W. Minister responsible for consumer affairs, describes the operation of that State's legislation.

29 E.g.Consumer Affairs Act 1971-1975 (W.A.) s. 17(1)(c) and (d).

30 See statutes cited n. 28 supra: N.S.W. s. 16(1)(b)(iii); Vic s. 6(d); Qld ss. 6(1)(c), 19(1)(b) and (h); W.A. ss. 14(1)(c), 17(1)(b) and (h); Tas.s. 6A(3A)(b); A.C.T. ss. 11(5), 14(d) and (e).

31 Fisse, “The Use of Publicity as a Criminal Sanction Against Business Corporations” (1971) 8 Melbourne University Law Review 107Google Scholar and “Consumer Protection and Corporate Criminal Responsibility” (1971-1972) 4 Adelaide Law Review 113Google Scholar.

32 N.S.W. Consumer Protection Act 1969-1972, s. 32; Vic. Consumer Affairs Act 1972, s. 13; Qld Consumer Affairs Act 1970-1974, ss. 31-34; S.A. Unfair Advertising Act 1970-1972; W.A. Trade Descriptions and False Advertisements Act 1936-1973. Peden, “Misleading Advertising” (1974) 6 Bulletin of the Commercial Law Association 7. See also Cohen, “Comparative False Advertising Legislation: A Beginning” (1971-1972) 4 Adelaide Law Review 69; Sutton, “The Consumer Protection Act 1969 (N.S.W.) and Comparable Legislation in Other States and Overseas” (1971-1972) 4 Adelaide Law Review 43; Harding, “Advertising and the Consumer” in The Consumer and the Law (1973, Committee for Post-Graduate Studies, Department of Law, University of Sydney); Phillips, “False and Misleading Advertising under the Trade Practices Act, 1974, and Existing Queensland Legislation” (1974) 2 The Queensland Lawyer 73.

33 Dobson, “Trade Descriptions Act 1968-Recent Decisions” (1974) 8Google Scholar The Law Teacher 12 deals with recent U.K. cases, the most important of which appears to be Tesco Supermarkets Ltd v. Nattrass [1972] A.C. 153, and augments Egan, Trade Descriptions-the New Law (1968), O'Keefe, The Trade Descriptions Act 1968 (1968) and The Law Relating to Trade Descriptions (1971).

34 Consumer representation:N.S.W.Consumer Protection Act 1969-1972 s. 7(2)(b); Vic. Consumer Affairs Act 1972, s. 5(1)(d); W.A. Consumer Affairs Act 1971-1975, s. 6(2)(e); Tas. Consumers Protection Act 1970, s. 3(3)(d);

35 s.80(1).

36 E.g. N.S.W.Weights and Measures Act 1915-1974 replacing earlier legislation to the same effect.

37 Book Purchasers' Protection Act 1899-1963.

38 N.S.W Door-to-Door Sales Act 1967-1974; Vic. Consumer Affairs Act 1972 ss. 14-20; Qld Door to Door (Sales) Act 1966-1973; S.A. Door to Uoor Sales Act 1971 and Book Purchasers Protection Act 1963-1972;W.A Door to Door (Sales) Act 1964-1973; Tas. Door to Door Sales Act 1967; N.T. Door to Door Sales Ordinance 1967.

39 N.S.W. Unsolicited Goods and Services Act 1974; Vic. Consumer Affairs Act 1972, ss. 21-32; Qld Unordered Goods and Services Act 1973-1974; S.A. Unordered Goods and Services Act 1972; W.A. Unsolicited Goods and Services Act 1973; Tas. Unordered Goods and Services Act 1973; Peden, “Unsolicited Goods and Services” (1975) 7 Bulletin of the Commercial Law Association 15Google Scholar.

40 N.S.W. Mock Auctions Act 1973; Vic. Consumer Affairs Act 1972, ss. 13B- 13F; Qld Mock Auctions Act 1973; S.A. Mock Auctions Act 1972; Tas. Mock Auctions Act 1973; W.A. Auction Sales Act 1973, s. 25.

41 N.S.W. Pyramid Sales Act 1974; Vic. Consumer Affairs Act 1972, ss. 32A- 32E, Qld Pyramid Selling Schemes (Elimination) Act 1973; S.A. Pyramid Sales Act 1973; W.A. Pyramid Sales Schemes Act 1973-1975; A.C.T. Pyramid Selling Ordinance 1973-1974; Tas. Pyramid Selling Act 1974.

42 Supra 32.

43 N.S.W.Sale of Goods Act 1923-1974; Vic. Goods Act 1958; Qld Sale of Goods Act of 1896; Tas. Sale of Goods Act 1896; W.A. Sale of Goods Act 1895;A.C.T. Sale of Goods Ordinance 1954-1967; S.A. Sale of Goods Act 1895-1971.

44 fnfra pp. 310-313.

45 Compare Lockett v. A. & M. Charles Ltd [1938] 4 All E.R. 170 and Buckley v. La Reserve [1959] Criminal Law Review 451. Cf. The United States Uniform Commercial Code, s. 2-318 which extends the benefit of warranties in a contract for the .sale of goods to members of the buyer's household and guests (who may reasonably be expected to use the goods) regardless of the lack of contractual relationship; N.S.W. Sale of Goods Act 1923-1974, s. 64(5) allows manufacturers to be added to consumer actions where goods are of unmerchantable quality. See also Manufacturers Warranties Act 1975 (S.A.).

46 N.S.W. Consumer Protection Act 1969-1972, s. 16(1)(b)(iii).

47 Trade Practices Act, s. 28(1).

48 E.g.inertia selling, pyramid selling, and to some extent, misleading advertising: Part 4 of this article, supra.

49 Supra pp. 290-293.

50 Report of the Interim Commission on Consumer Standards (1974).

51 S. 62(2)(a).

52 Ss 62(1), 63(1).

53 Ss. 62(3), 63(3), 82(1).

54 The Federal Trade Commission is charged with the duty of enforcing anti-trust legislation which may also be enforced by actions brought by private parties and by the U.S. Justice Department: Dietrich, “Federal Trade Commission and Consumer Protection” (1973) 1 Australian Business Law Review 204Google Scholar.

55 Cox, , Fellmeth, Schultz, 'The Nader Report' on the Federal Trade Commission (1969)Google Scholar; American Bar Association, Report of the A.B.A. Commission to Study the Federal Trade Commission (1969).

56 S. 80(1).

57 Spry, , Equitable Remedies (1971) 435-441Google Scholar and Hewitt, Kerr on Injunctions (4th ed. 1903) 23, 567-569Google Scholar. There seems to be no reason why an application for an interim injunction to restrain a contravention of the Act should be treated differently from any other application for an interlocutory injunction. Where the Attorney-General or (probably) the Commission is the plaintiff, they are not required to give undertakings as to damages where they seek an injunction in the fulfilment of their obligation to enforce the law F. Hoffmann-La Roche & Co. v. Secretary of State for Trade and Industry [1974] 3 W.L.R. 104.

58 s.82(1).

59 Taperell, Vermeesch and Harland, Trade Practices and Consumer Protection (1974) Chapters 9 and 10 provide a useful analysis of the law, including some references to United States decisions.

60 Kintner, A Primer on the Law of Deceptive Practices (1971)Google Scholar; Maher, “Section 52 of the Trade Practices Act 1974: Some Suggested Guidelines” (1975) 49 Law Institute Journal 80Google Scholar; Taperell, Vermeesch and Harland, op. cit. Ch. 10.

61 E.g N.S.W.Consumer Protection Act 1969-1972, s. 32.

62 C.R.W. Pty Ltd v. Sneddon (1972) 72A.R. (N.S.W.)17; Taperell, Vermeesch and Harland, op cit. Ch. 10; Peden, “Misleading Advertising” (1974) 6 Bulletin of the Commercial Law Association 7Google Scholar.

63 Ss. 79, 80, 82, 87.

64 (1972) 72 A.R. (N.S.W.) 17.

65 Derry v. Peek (1889) 14 App. Cas. 337; Fleming, , The Law of Torts (4th ed. 1971) Ch. 25Google Scholar.

66 Brown v. Sheen and Richmond Car Sales Ltd [1950] 1 All E.R. 1102; Oscar Chess Ltd v. Williams [1957] 1 W.L.R. 370.

67 Carlill v. Carbolic Smoke Ball Company [1893] 1 Q.B. 256.

68 C.R.W. Ply Ltd v. Sneddon (1972) 72 A.R. (N.S.W.) 17.

69 A guide to the meaning of “misleading and deceptive” might be s. 5(3) of the N.S.W. Companies Act 1961-1974: “... a statement included in a prospectus . . . shall be deemed to be untrue if it is misleading in the form and context in which it is included”.

70 John Walker & Sons Ltd v. Donlan Liquor Markets Pty Ltd (unreported, Australian Industrial Court, 9.12.74).

71 The King v. Burgess; Ex parte Henry (1936) 55 C.L.R. 608, 687; Airlines of N.S.W. Pty Ltd v. N.S.W. (No.2) (1964-1965) 113 C.L.R. .54,152-153.

72 E.g. Lee v. Evans (1964) 112 C.L.R. 276 where the High Court was required to determine how many persons constituted “the public”.

73 E.g. in the first prosecution for an offence under this Division, Hartnell v. Sharp Corporation of Australia Pty Ltd (1975) 5 A.L.R. 493 the defendant had admittedly advertised its microwave ovens as having been approved by a particular body which had in fact given no such approval. The advertisement was false in one of the specific ways prohibited by the Act.

74 Supra n. 32.

75 Defined in s. 4(1) of the Act.

76 Principally because “market” is difficult to define. It is relevant also to the enforcement of Part IV of the Act: Levine, “Aspects of the Trade Practices Bill 1973” (1973) 47 A.L.J. 679, 685-686.

77 E.g.Consumer Affairs Council, Report for the Year ended 30.6.73, 16-18. See now the Referral Selling Act 1974(N.S.W.).

78 For inertia selling, see n. 39 supraand the article by Peden cited there. However, Professor Peden may give a misleading impression that it is State, rather than federal legislation, which governs acts done other than by a corporation. The effect of the Trade Practices Act s. 6 is to give that Act a wide operation over the conduct of individuals other than corporations within State boundaries. For pyramid selling see n. 41 supra.

79 S. 64(1), (3) and (5); “directory” is defined ins. 64(10).

80 s. 64(9)

81 Pyramid Selling in Victoria: An Investigation by the Victorian Public Interest Research Group Limited (1973) ; Head, “Pyramid Selling Legislation-Effective?” (1974) 2 Australian Business Law Review 167Google Scholar; Myers, , Wedding, Maertin, “Non-Egyptian Pyramids-U.S. Style” (1974) 2 Australian Business Law Review 84Google Scholar; “Pyramid Schemes: Dare to be Regulated” (1973) 61 Georgetown Law Journal 1257; Ella, “Multi-level or Pyramid Sales Systems: Fraud or Free Enterprise” (1973) 18 South Dakota Law Review 358Google Scholar; Simpson, “Pyramid Selling: The Australian Attempts at Control” (A.N.U. Law Library, honours research paper (1974))Google Scholar; cf. U.K. Fair Trading Act 1973, Part XI and New York State General Business Law, s. 349ff (added 1973).

82 Merwin Pastoral Co. Pty Ltd v Moolpa Pastoral Co. Pty Ltd (1933) 48 C.L.R. 565; Kay's Leasing Corporation Pty Ltd v. Fletcher (1964) 116 C.L.R. 124; s. 118 of the Commonwealth Constitution; Service and Execution of Process Act 1901-1974 (Cth) and the State and Territorial Laws and Records Recognition Act, 1901-1964 (Cth), s. 18; Pryles and Hanks, Federal Conflict of Laws (1974) Ch. 2.

83 E.g.N.S.W.Crimes Act 1900-1974, s. 179; Qld The Criminal Code ss. 427-428.

84 S. 4(1) defines “supply” to include supply under hire-purchase contracts; a finance company, though not a party to any contract for the sale of goods between the dealer and the consumer, may perform acts in connection with the supply of or payment for those goods under a contract for the supply of goods.

85 N.S.W. Sale of Goods Act 1923-1974, ss. 17-20; Vic. Goods Act 1958

ss. 17-20; Qld Sale of Goods Act of 1896, ss. 15-18; Tas. Sale of Goods Act 1896,

ss. 17-20; W.A. Sale of Goods Act 1895, ss. 12-15; A.C.T. Sale of Goods Ordinance 1954-1967, ss. 17-20; S.A. Sale of Goods Act 1895-1971, ss. 12-15

86 E.g. N.S.W. s. 51and the opening words of s. 19.

87 The Commercial Transactions (Miscellaneous Provisions) Act 1974(N.S.W.)inserted s. 64 into the Sale of Goods Act 1923; s. 64 prohibits exclusion clauses in “consumer” sales, “consumer” is defined in virtually the same terms as in the Trade Practices Act.

88 N.S.W.Hire-Purchase Act 1960-1974; Vic. Hire-Purchase Act 1959; Qld Hire-Purchase Act of 1959; Tas. Hire-Purchase Act 1959; W.A. Hire-Purchase Act 1959-1974; A.C.T. Hire-Purchase Ordinance 1961-1969. In South Australia hire-purchase was abolished by the Consumer Transactions Act 1972-1973, ss. 4, 24: supra p. 296.

89 Law Commission, Published Working Paper No. 39 and Scottish Law Commission, Memorandum No. 15: Provisional Proposals relating to the Exclusion of Liability for Negligence in the Sale of Goods and Exemption Clauses in Contracts for the Supply of Services and other Contracts (Joint Document, 1971); Law Commission, Published Working Paper No. 18 and Scottish Law Commission Memorandum No. 7, Provisional Proposals Relating to Amendments to Sections 12-15 of the Sale of Goods Act 1893 and Contracting out of the Conditions and Warranties Implied by those Sections (1968).

90 Comments on the Act: Yates, “The Supply of Goods (Implied Terms) Act 1973” (1973) Journal of Business Law 135; Carr, “The Supply of Goods (Implied Terms) Act 1973” (1973) 36 Modern Law Review 519.

91 The state of the existing law, following some rather inconsistent decisions in Henry Kendall & Sons v. William Lillico &Sons Ltd [1969] 2 A.C. 31, Ashington Piggeries Ltd v. Christopher Hill Ltd (1972] A.C. 441 and B.S. Brown & Son Ltd v. Craiks Ltd [1970] 1 All E.R. 823 is discussed by Bilinsky, “When are Goods of Merchantable Quality?” (1974) 6 Commercial Law Association Bulletin 1Google Scholar.

92 N.S.W.Commercial Transactions (Miscellaneous Provisions) Act 1974.

93 Cited n. 89 supra (the 1971 Joint Document).

94 Ibid.

95 Vita Food Products Incorporated v. Unus Shipping Co. Ltd [1939] A.C. 277, 290: the Board stated that the choice of a governing law by the parties would be effective subject to the requirements of public policy. This case remains the governing principle, subject perhaps to the requirements that there must be a reasonable connection between the transaction and the place whose law is chosen and that the purpose of choosing a foreign law is not to avoid the effect of local legislation: Golden Acres Ltd v. Queensland Estates Pty Ltd [1969] Qd.R. 378; Nygh, Conflict of Laws in Australia (2nd ed. 1971) 338-343CrossRefGoogle Scholar.

96 E.g. Vita Food Products Incorporated v. Unus Shipping Co. Ltd [1939]A.C. 277.

97 N.S.W Hire-Purchase Act 1960-1974, s. 5(1); Vic. Hire-Purchase Act 1959s. 5; Qld Hire-Purchase Act of 1959, s. 5; Tas. Hire-Purchase Act 1959, s. 9; W.A.Hire-Purchase Act 1959-1974, s. 5;A.C.T. Hire-Purchase Ordinance 1961-1969, s. 10. The South Australian equivalent is the Consumer Transactions Act 1972- 1973, s.8.

98 Karflex Ltd v. Poole[1933] 2 K.B. 251; Mercantile Union Guarantee Corporation Ltd v. Wheatley [1938] 1 K.B. 490.

99 [1921] 3 K.B. 387.Cf. Microbeads A.G. v. Vinhurst Road Markings Ltd [1975] 1 W.L.R. 218.

1 [1923] 2 K.B. 500.

2 The principle in Hadley v. Baxendale (1854) 9 Exch. 341, [1843-1860] All E.R. Rep. 461 is now enacted in all the Sale of Goods Acts: e.g. Vic. ss. 56(2), 57(2), 59(2) and 60. Cf. Trade Practices Act, s. 82(1).

3 [1949] 2 K.B.545.

4 [1923] 2 K.B. 500.

5 Joint Working Paper No. 18 of 1968, para. 11; Law Commission No. 24 and Scottish Law Commission No. 12, Exemption Clauses in Contracts: First Report: Amendments to the Sale of Goods Act 1893 (1969, reprinted 1973) paras. 11-19.

6 [1923] 2 K.B. 500.

7 English and Scottish Law Commissions, Joint Working Paper No. 18 of 1968 cited supra n. 89, para. 11.

8 Supra n. 19.

9 [1900] 1 Q.B. 513.

10 The High Court's decision in Beaton v. Moore Acceptance Corporation Pty Ltd (1959) 104 C.L.R. 107 suggests that in certain contracts, terms may be implied by the common law, notwithstanding the existence of terms implied by statute into the same contracts; Turner, “Common Law Implied Terms of Fitness in Contracts of Simple Hire and Hire-Purchase: An Analysis” (1972) 46 A.L.J. 560 and 619. It is arguable that the common law will imply certain terms into contracts for the supply of goods, though, because the existence of statutory terms has obviated the necessity of relying on the common law, it is not clear what the terms would be and under what circumstances they would be implied.

11 [1969] 2 Q.B. 400.

12 [1936] A.C. 85.

13 (1933) 50 C.L.R. 387.

14 (1934) 52 C.L.R. 110.

15 (1958) 58 S.R. (N.S.W.) 380.

16 English and Scottish Law Commissions, Provisional Proposals Relating to the Exclusion of Liability for Negligence in the Sale of Goods and Exemption Clauses in Contracts for the Supply of Services and Other Contracts (1971).

17 [1972] A.C. 441.

18 No. 18, 1968; Law Commission No. 24 and Scottish Law Commission No. 12, Exemption Clauses in Contracts: First Report: Amendments to the Sale of Goods Act 1893 (1969, reprinted 1973) paras. 40-55.

19 [1969] 2 A.C. 31.

20 [1970] 1 All E.R. 823.

21 Bilinsky, “When are Goods of Merchantable Quality?” (1974) 6 Commercial Law Association Bulletin 1Google Scholar.

22 Cf. Supply of Goods (Implied Terms) Act 1973 (U.K.), s. 7(2); N.S.W. Sale of Goods Act 1923-1974, s. 64(3).

23 (1933) 50 C.L.R. 387, 418.

24 [1969] 2 A.C. 31, 79.

25 Id.77.

26 [1934] A.C. 402.

27 [1970] 1 All E.R. 823.

28 Cf. Lord Diplock's speech (dissenting in part) in Ashington Piggeries Ltd v. Christopher Hill Ltd [1972] A.C. 441, 498-514.

29 James Drummond &Sons v. E.H. Van Ingen & Co. (1887) 12 App. Cas. 284; Ashington Piggeries Ltd v. Christopher Hill Ltd [1972] A.C. 441; Henry Kendall &Sons v. William Lillico & Sons Ltd[1969] 2 A.C. 31.

30 (1829) 5 Bing 533,544; 130 E.R. 1167, 1172.

31 Ashington Piggeries Ltd v. Christopher Hill Ltd[1972] A.C. 441, 506-507. For the purpose of this quotation, ss. 14(1) and (2) of the U.K. Sale of Goods Act 1893 are respectively similar to ss. 71(2) and (1) of the Trade Practices Act and to, for example, ss. 19(1) and (2) of N.S.W. Sale of Goods Act 1923-1974.

32 U.K.Sale of Goods Act 1893 s. 14(3).

33 [1969] 2 A.C. 31.

34 [1972] A.C. 441.

35 James Drummond & Sons v. E.H. Van lngen & Co. (1887) 12 App. Cas. 284.

36 S. 14(3) of the Sale of Goods Act 1893 as amended by the Supply of Goods (Implied Terms) Act 1973.

37 [1969] 2 A.C. 31.

38 [1972] A.C. 441.

39 (1934) 52 C.L.R. 110.

40 (1933) 50 C.L.R. 387 (High Court); [1936] A.C. 85 (Privy Council).

41 [1960] 1 All E.R. 36.

42 In David Jones Ltd v.Willis (1934) 52 C.L.R. 110 the plaintiff asked for “walking shoes”.

43 Preist v. Last[1903] 2 K.B. 148.

44 Manchester Liners Ltd v. Rea Ltd [1922] 2 A.C. 75; cf. Wilson v. Rickett Cockerel&Co. Ltd [1954] 1 Q.B. 598.

45 Frost v. The Aylesbury Dairy Company Ltd [1905] 1 K.B. 608.

46 Cammell Laird &Co. Ltd v. The Manganese Bronze and Brass Co. Ltd [1934] A.C. 402,

47 (1933) 50 C.L.R. 387 (High Court); [1936] A.C. 85 (Privy Council).

48 [1934] A.C. 402.

49 [1969] 2 A.C. 31.

50 [1972] A.C 441.

51 Cammell Laird & Co. Ltd v. The Manganese Bronze and Brass Co. Ltd [1934] A.C. 402.

52 Ashington Piggeries Ltd v. Christopher Hill Ltd [1972] A.C. 441.

53 N.S.W. Sale of Goods Act 1923-1974, s. 19(1).

54 Baldry v. Marshall [1925] 1 K.B. 260; Criss v. Alexander (1928) 28S.R.(N.S.W.)587.

55 N.S.W Hire-Purchase Act 1960-1974, ss. 2(1 ), 6(3); Vic. Hire-Purchase Act 1959, ss. 2(1), 6(3); W.A. Hire-Purchase Act 1959-1974, ss. 2(1), 6(3); Qld Hire-Purchase Act of 1959, ss. 2(1), 6(3); Tas. Hire Purchase Act 1959, ss. 4(1)(a), 10(3); A.C.T. Hire-Purchase Ordinance 1961-1969, ss. 6(1), 11(3).

56 Defined in s. 66.

57 Supr p.293.

58 Newlands v. Argyll General Insurance Co. Ltd (1959) 59 S.R. (N.S.W.) 130. The finance company had not accepted the hirer's offer to enter the agreement at the relevant time.

59 Cf. Marcel (Furriers) Ltd v. Tapper [1953] 1 W.L.R. 49; Young & Marten Ltd v. McManus Childs Ltd [1969] 1 A.C. 454; and Dodd v. Wilson and McWilliam [1946] 2 All E.R. 691 which considered whether a particular contract was one of sale of goods or for work done and materials supplied and whether, if the latter, which conditions would be implied by the common law. Certainly the English courts have implied similar t,erms into contracts for services: G.H. Myers and Co. v. Brent Cross Service Co. [1934] 1 K.B. 46; Samuels v. Davis [1943] K.B. 526; Stewart v. Reavell's Garage [1952] 2 Q.B. 545; Ingham v. Emes [1955] 2 Q.B. 366. There are similar Australian cases: Martin v. McNamara [1951] St.R.Qd. 225; and in Helicopter Sales (Australia) Pty Ltd v. Rotor-Work Pty Ltd (1974) 4 A.LR. 77 the High Court approved the approach of the House of Lords in Young &Marten's case.

60 Young & Marten Ltd v. McManus Childs Ltd [1969] 1 A.C. 454.

61 Cf. Dodd v. Wilson and McWilliam [1946] 2 All E.R. 91; Perlmutter v Beth David Hospital (1954) 123 N.E.2d. 792.

62 Brooks Robinson Pty Ltd v. Rothfield [1951] V.L.R. 405.

63 Collins Trading Co. Pty Ltd v. Maher [1969] V.R.S 20.

64 Cf. Amco Enterprises Pty Ltd v. Wade [1968] Qd.R. 445; Mills v. Stokman (1966-1967) 116 C.L.R.61.

65 The Law Reform Commissions in both N.S.W. Part 2, Section 2, para. 45) and the A.C.T. (Part 11(4)) in Working Papers published during 1973 have recently drawn attention to the inequities which can arise where an arbitration clause in a contract with a consumer (e.g.building and insurance contracts) is used to defeat or delay a claim made by that creditor. Cf. Fakes v. Taylor Wood-row Construction Ltd [1973] Q.B. 436.

66 A.C. 441, 508-509.

67 Set out supra pp. 288-289.

68 Tuck & Sons v. Priester (1887) 19 Q.B.D. 629, 638; Langan (ed, Maxwell on the Interpretation of Statutes (1969) 238ff.; Edgar, (ed.), Craies on Statute Law (1971) 529-531.

69 In the U.S. the Government has been able to obtain injunctions to prevent the sale of goods which are defective or in breach of some statutory requirement:U.S. v. Vitasafe Corporation (1965) 345 F.2d. 864. It seems that where a product is dangerous the courts will award damages for breach of a duty of care:Baxter v. Ford Motor Co. (1932) 12 P.(2d) 409, affirmed (1932) 15 P.(2d) 1118. This appears to be a possible development of the principle in Donoghue v. Stevenson [1932] A.C. 562 which has not been fully considered in Anglo-Australian law.

70 S.Deb. 1973, Vol. 58, 1878.

71 E.g. Commercial Law Association, Report on the Superior Court of Australia Bill 1974 (1974).

72 The King and the Minister for Customs v. Australasian Films Limited (1921) 29 C.L.R. 195; R. v. I.C.R. Haulage Ltd[1944] K.B. 551; Moore v. I. Bresler Ltd[1944] 2 All E.R. 515; Leigh, The Criminal Liability of Corporations in English Law (1969); Welsh, “The Criminal Liability of Corporations” (1946) 62 L.Q.R. 345Google Scholar; Heerey, “Corporate Criminal Liability-A Reappraisal” (1962) 1 Tasmanian University Law Review 677Google Scholar; Fisse, “The Distinction Between Primary and Vicarious Corporate Criminal Liability” (1967) 41 A.L.J. 203Google Scholar.

73 [1935] A.C. 462.

74 N.S.W. Consumer Protection Act 1969-1972, s. 32(4); Vic. Consumer Affairs Act 1972, s. 13(8); Qld Consumer Affairs Act 1970-1974, s. 45A; W.A. Trade Descriptions and False Advertisements Act 1936-1973, s. 8(4). Cf. Harding, “Advertising and the Consumer” in The Consumer and the Law (1973 Committee for Post-Graduate Studies, Department of Law, Sydney University) 64.

75 Harding, , op cit. 48Google Scholar.

76 H.M.S.O. London, 1970.

77 Qld Small Claims Tribunals Act 1973-1974 (see also the Magistrates Courts Act Amendment Act 1975); N.S.W. Consumer Claims Tribunals Act 1974; W.A. Small Claims Tribunals Act 1974-1975; Vic. Small Claims Tribunals Act 1973;A.C.T. Small Claims Ordinance 1974; N.T. Small Claims Ordinance 1974.

78 Qld s. 32; N.S.W. s. 30; W.A. s. 32; Vic. s. 30.

79 Qld ss. 18-19; N.S.W. ss. 20-21; W.A. ss. 18-19; Vic. ss. 16-17. The A.C.T.

80 Current reports say that in South Australia, to avoid the operation of thelegislation, one device used is a sale by the dealer to the consumer and the creditprovider as tenants-in-common. The credit provider then agrees to release hisinterest in the goods on payment of a sum referable to principal and interest,maintenance of the goods, right to repossession, etc. However, as credit providers become more familiar with the operation of the new legislation, they areapparently happier with its operation—to the extent that the Finance Conferenceof Australia is now seeking the approval of the Standing Committee of AttorneysGeneralto similar legislation throughout Australia.