Federal Court of Australia
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IN THE FRDPRAL COURT
S OF AUSTRALIA Sha SOUTH WALES DISTRICT RFGISTRY
GENERAL DIVISION
Reasons for Judgment:
Delivered
as
Between
And
G No. 70 of 1977
Robert E. Phelps
(Annlicant)
Western Minine Cornoretion Ttd, and Others
(Respondents)
Franki J.
8 November 1977
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a ca ee,
The applicant seeks injunctions under s.80 of the Trade Practices Act 1974-1977 (the Act) restraining the respondents individually or collectively from advertising in a manner contrary to ss.52 and 55 of the Act.
These sections read as follovws:-
Section 52.(1) A corporation shell not, in trade or commerce, engage in conduct that,is misleading or deceptive or is likely
to mislead or deceive. (2) Nothing in the succeeding provisions of this Division shell be taken as limiting by implication the generality of sub-section (1). Section 55. A person shall not, in trade or commerce, engage in conduct that is liable to mislead the nublic as to the nature, the manufacturing process, the characteristics, the suitability for their purpose or the quantity of any goods. This matter first came before me on an application for directions ,when Senior Counsel for the respondents asked that the Court determine four questions before the hearing of the matter. The apolication was put,on behalf of the respondents, upon the basis that a great deal of time would be snent in Getermining whether or not certain advertising, which the apnlicant alleged was contrary to the provisions of ¢s.52 and 55,was either "misleading or deceptive or likely to mislead or deceive," within the reaning of these words in s.52(1), or "liable to mislead" within the meaning of these words in s.55. The matter had been commenced, in compliance with the Rules, by an order nisi to show cause, but I considered that it was an appropriate case to order that a statement of claim and a statement of defence be filed and this procedure was not opposed by the parties. . A statement of claim was filed and it alleged that
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