Trade Practices Commission v. BP Australia Ltd [1985] FCA 538

Parties

Procedural Posture

Civil / Liability Findings; Relief Adjourned

Legal Issues

1. 1 Whether BP Australia Limited engaged in resale price maintenance contrary to s.48 of the Trade Practices Act 1974
2. 2 Proper construction of s.96(3)(f) of the Trade Practices Act 1974: does it require a contractual obligation not to sell below the specified price?
3. 3 Whether provisions of the Petroleum Retail Marketing Franchise Act 1980 provide a defence or implied repeal affecting s.48 of the Trade Practices Act

Ratio Decidendi

BP Australia Limited contravened s.48 of the Trade Practices Act 1974 by engaging in resale price maintenance: the company, through its manager, used statements to its lessee indicating that unless the lessee matched the specified retail price, price support would be withdrawn and wholesale prices would be increased; this practical compulsion is sufficient for liability under s.96(3)(f) even absent contractual obligation.

Court Disposition

Contravention declared; costs awarded to applicant; penalty and further relief adjourned.

Orders

• Declare that the respondent engaged in the practice of resale price maintenance in respect of the supply of motor spirit in contravention of s.48 of the Trade Practices Act 1974 in the respect alleged in para.15 of the amended statement of claim.
• Order that the respondent pay the applicant's costs of the proceedings to date.