Trade Practices Commission v. Annand & Thompson Pty Ltd [1987] FCA 139

Trade Practices Commission v. Annand & Thompson Pty Ltd [1987] FCA 139

The respondent contravened s.48 of the Trade Practices Act 1974 because its sales manager refused to supply Dunlop motor cycle tyres to Shell Wacol except on the condition that Shell Wacol not resell below the respondent's list price. In assessing penalty, the contravention was serious but toward the lower end of the scale because it was a one-off incident, no particular loss or damage was suggested, there was no previous similar finding, the conduct was contrary to company policy, and the respondent had attempted and then strengthened employee compliance education. A pecuniary penalty of $15,000.00 was appropriate.

Jurisdiction
Australia
Judgment Date
02 April 1987
Procedural Posture
Trade Practices Act Pecuniary Penalty Proceeding for Resale Price Maintenance / Judgment After Hearing; Contravention Admitted and Penalty Assessed
Outcome
Application allowed; respondent ordered to pay a pecuniary penalty and costs.
Legal Topics
['resale Price Maintenance' 'refusal to Supply Except on Condition of Resale at List Price' 'pecuniary Penalties' 'corporate Compliance and Employee Education']
['trade Practices' 'competition Law'] ['resale Price Maintenance' 'refusal to Supply Except on Condition of Resale at List Price' 'pecuniary Penalties' 'corporate Compliance and Employee Education']

Case Brief

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Procedural Posture

Trade Practices Act Pecuniary Penalty Proceeding for Resale Price Maintenance / Judgment After Hearing; Contravention Admitted and Penalty Assessed

Legal Issues

  1. 1 ['Whether the respondent engaged in resale price maintenance contrary to s.48 of the Trade Practices Act 1974 by refusing to supply Dunlop motor cycle tyres except on condition that the retailer resell at the list price.' 'What pecuniary penalty was appropriate under s.76 of the Trade Practices Act 1974 having regard to the admitted contravention and relevant circumstances.']

Ratio Decidendi

The respondent contravened s.48 of the Trade Practices Act 1974 because its sales manager refused to supply Dunlop motor cycle tyres to Shell Wacol except on the condition that Shell Wacol not resell below the respondent's list price. In assessing penalty, the contravention was serious but toward the lower end of the scale because it was a one-off incident, no particular loss or damage was suggested, there was no previous similar finding, the conduct was contrary to company policy, and the respondent had attempted and then strengthened employee compliance education. A pecuniary penalty of $15,000.00 was appropriate.

Court Disposition

Application allowed; respondent ordered to pay a pecuniary penalty and costs.

Orders

  • ['The respondent pay to the Commonwealth of Australia a pecuniary penalty of $15,000.00 in respect of the contravention of s.48 of the Act alleged in the Statement of Claim.' 'Pursuant to s.77 of the Trade Practices Act 1974, judgment be entered for the applicant on behalf of the Commonwealth of Australia against...