Dandy Power Equipment Pty Ltd & Anor v. Mercury Marine Pty Ltd [1982] FCA 193

Dandy Power Equipment Pty Ltd & Anor v. Mercury Marine Pty Ltd [1982] FCA 193

The defendant's termination of the dealership and refusal to supply Mercury outboard motors was, on the balance of probabilities, actuated in part by the plaintiff taking or intending to take a Chrysler dealership and therefore fell within s.47(3). However, the plaintiffs failed to prove that the refusal had the purpose, effect, or likely effect of substantially lessening competition in any relevant retail or wholesale market. The plaintiff had substantial alternative access to Mercury motors and parts through Big 7 and related arrangements, had strong commercial incentives to promote Chrysler rather than Mercury, and any loss of Mercury sales or showroom display was not shown to be a...

Jurisdiction
Australia
Judgment Date
14 September 1982
Procedural Posture
Trade Practices Proceeding Seeking Damages Under S.82(1) and Other Relief Under S.87 of the Trade Practices Act 1974 for Alleged Contraventions of S.47(1) / Final Hearing; Reasons for Judgment and Orders
Outcome
Application dismissed.
Legal Topics
['exclusive Dealing' 'refusal to Supply Goods' 'substantial Lessening of Competition' 'retail and Wholesale Outboard Motor Markets' 'purpose and Effect Under S.47(10)' 'related Bodies Corporate Under S.47(12)']
['trade Practices' 'competition Law'] ['exclusive Dealing' 'refusal to Supply Goods' 'substantial Lessening of Competition' 'retail and Wholesale Outboard Motor Markets' 'purpose and Effect Under S.47(10)' 'related Bodies Corporate Under S.47(12)']

Case Brief

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Procedural Posture

Trade Practices Proceeding Seeking Damages Under S.82(1) and Other Relief Under S.87 of the Trade Practices Act 1974 for Alleged Contraventions of S.47(1) / Final Hearing; Reasons for Judgment and Orders

Legal Issues

  1. 1 ['Whether the defendant refused to supply Mercury products to the plaintiff for a reason specified in s.47(3) of the Trade Practices Act 1974.' 'Whether the refusal had the purpose, effect, or likely effect of substantially lessening competition in a relevant retail market.' 'Whether the refusal had the purpose, effect, or likely effect of substantially lessening competition in a relevant wholesale market.' 'Whether the defendant supplied goods to dealers on an exclusive dealing condition contrary to s.47(2).' 'Whether the condition concerning Mariner outboard motors was exempted by s.47(12) because the relevant bodies corporate were related.']

Ratio Decidendi

The defendant's termination of the dealership and refusal to supply Mercury outboard motors was, on the balance of probabilities, actuated in part by the plaintiff taking or intending to take a Chrysler dealership and therefore fell within s.47(3). However, the plaintiffs failed to prove that the refusal had the purpose, effect, or likely effect of substantially lessening competition in any relevant retail or wholesale market. The plaintiff had substantial alternative access to Mercury motors and parts through Big 7 and related arrangements, had strong commercial incentives to promote Chrysler rather than Mercury, and any loss of Mercury sales or showroom display was not shown to be a...

Court Disposition

Application dismissed.

Orders

  • ['The application be dismissed.' 'Costs reserved.']