Birr [o8 Trad Sm theys & Pacemus IOUIMS rectiqnt: Vicor Ve ry fo 5 te flo, BF ryt IOS wry tet JUDGE MAKING OR DATE OF © WHERE MADE: i COURT GADE NS TH The defendant wae ere by way of poo rofors Lollcuwsi- Od m pm ytee Lf mM tet me oe aye Tie Cre Sad ee 42 / ro wor fares fa a. ERadeiC LT eo ee AMID: STIVL CHOATE 6.5 Pry, LTD. — | — ORDOR Smithers, J. 8& December 1978 Melbourr.e eee ~ - won atluye rho wespect oT ths cenblrou-nvigms - fy fas.doe ' By - Poe Say The or fod rp eto? ~ 1 aw ayy ye ae - 3 tig oc so, Estes tram cedirp od te Ne at nO nN (b) an respeel of cur commuvencats referred to an allegeticn (bd) a penolts an the sun of "45,000; (ec) an reepect of the comtreventien referrcd to ain allegetion (c) a penaity an the sun of {5,0c0, pursuant to s.77 of the Trade Tactioees fot 1974 judgment be entercda for the Trade Practices Commics2ou on behelf of the Conmonweelth of Ausirslie for the sum cf $75,000; the defendant be restrained by its cervants, agents or otherwise from withholding supplies of Stihl chain saws or parts therefor fron Morton's Bulx Sales for the reason that liorton's Pulk Sales have or are likely to advertise Stihni chsin saws or parts therefor in the Weekly Times or otherwise for sale ut prices less than the dcfendent's recommended retail price in respect of such goods; the defendsent be ordered to vay the plaintiff the costs of and ancidentel *to tht+e procecdings. wo at ora IN THE PRD OL Colle OF CUSTER CL IA mye GENERAL DIV OT! al V.G. Now 47 of 1977 Om 5D sier VICTORIA D'STETCR Hea Ley a In the etter of TRE TRADE PRACTICES ACT 1974 RETVEIT: TREADS PRACTICNS Cut Anion ait cone Plaijntazs aowe( tran y ' red Smitkers, J. 8 Neoes ber 7077 wan utes hee et REA AO > The plaintiiz, the Teate Practices Cuoralcsicn, Lrings action against thedefcndent, Stihl Chiun Sus Ciust) Pry. Ltd. (Stikl), a co.cany vhich carrice 6a the businces of importing from 1ts paren. co™pary 2 Germany al power chain saves and pwrts ticrefor end m same in V2cvoria anc other paris of fustralia. high quality. T! astrihules of distributors and In Victoris distributors and about 150 desliers. The q ros supplies fron the cefendant ard the oo one of the distributors. vt appears vhat for particular areas. Dealers app-ar to catia business in acular lo par ONS by retail but are not sul of persons to «shor ciff The plain OL Qcefendant pursuant of the Act) an respect of that Act and angunctics lining the " — era nate peace further con entions ov che Visions x allegec to heve been committed by The INMaterial, that:- (a) ~ tata aliG in the on lias ha a. 48 derendant an thet it yin 17 ee ee | Jo amir + ears) a iq deslers ebsng istributors are be p bgect to Jamivatsons as to the c a Trace Preceices tne defentant coefen the The oar Oa Veo we th mer a8 sa ug care rsous v,heo cart y on They seil er perslty anor whe Cc ci 1eTk Ce é he of De fey o Q) Fh i + dic 4. ' Car £ a ny from coma ius io woe Hore 'he centrayventio a are, so fara Ss of the Act (b) in partnership under the firm nume Morton's Bulk Caler who were at oll rarerisl times until 13 May 1975 an apposnted dealer or th elendant in respect of Stihl pre@ucts not ts adservise Stihl Cheinsavs and perts therefor susplired to them by the defencent ac prices less tnen the y prices specified by che derendeant a: th? prices below which such goods were not vo be advertised for sale, (see s.96(7)(b) ana 95(7) (e)). in and afler 15 May 1976 the defendent vithield supply to Morton's Pull Sales of Stihl chain saws and parts therefor for the reason thet Mortor's Bulk Sales hed ed ertised end vere likely advertise Stinl chein saws end perts therefer su.vlicad e deZendans ess than the prices. srecirr them by the deteonduny at less than the price ecir .nien such by the dcfondant as the prices belo, goods were nov to be advertised fer sale, (sce 96(3) (€)(42) anc 9€(7)). that between July 1975 and Occronper 1975 tne ww defend-nt induced or attempted to induce 2 company called Penansuls Mover and ilower Service Pty. Itd. (Peninsule) not to sell to a comprny called Berool Si: Lode. (Progect *9) Ply, Ltd. tradine uncer the nure of hove Wiegncil Tred.ins Cov., at prieer Tess voi unrs a Stihl cuain cay. anc yorcve bhereror supsitee Ly Tie defendsnt to Penincvit (,¢6 s.96(4)(b)). y, (©) oud (c) abovs then, as to thet reZirred to in (a) above by veacon of s. 96 (3) (vr) ané (7) 0.5, us to that referred to in (b) above, bv reasen of s. 96 (3) (d) (12) a Ne and (7), ard as to il. t referred te an (c) above, by rsascn of s. 96 (3) (b) of the Act at encesed ir the pructice of a ct a iT QO ct . resale price maintenurce contrary to 2.47 o Until 12 December 19%: tao defendauct Casupirutver 2p tee "-Lbourr and Tetropolitan area of Victorit, waich aneluded Croydon and "im \ m1. ae Ringwood, sas « firm called Hey Wignel)] Trading Coy (ANT). That firm was both distributor ard dealer. The ultimate beneticiar ownership OL a rember or rerlerr a & kev Wignell Tradir the family of the then lienugin, Director cf the cefendanut, Practices had develcpod as a result cf which Kivi gt2ned u.dus benefits to the disidventage of beth tne defendont ateeli ond th: defencant's other distributors end Cc clers. Thic situation becare known te those aun ultimate contral of the defenadm4 an . 5 gl PS Po tpayrans tue disgtir a+ December 7974, end 1t terminated the dristributers! bagtiral my we dealership of "Ww. Tne defercant accided not to trade with Wal thenceforth, an any vay. Orme reason far this was thee the defendant's other c_stribulors end deslers Lod develepeua a belief bas:d on fect that the defcndar. had been uncdy 27- vourins KWT to their dirédventace. The defender ne of the azalers! ena distrututerc! confitince gn the dstenvanat sine ried yore on de . sams terry ae Ws mW Gepended upom st mow Porn coen fo trecz vith Kea. at ell, Vpn poo, . re im as 2 betel weal KUT vb aise. cor laced ta di cram ate Too cue an hac DL ome + and ietropolitun are. Veriva Ceslers purctese@ gauo Trem te fe 25 restor tin a rye - ok as Gsabrabator wlte COC ed tt bes roo periea. pe tlane portomm ui OV praces, wwzcal tn reloleon bo cach pwoduct «ore published to Gr lors un pompit-its assurd py the deferndent fe the Law reloviot co fhe deelangs sun ibrea this cast as cesaicrr a tho decler puri std trop the defendin* «at prieca ecund te cae recanneneca prac: Lees 200 thepest one var ee itled bos Turticr Acduction of 5% of the colmenuded retail price af payment fer ibo proeucte vas mode ya ain thority dw. eF pwn 3. Hagner dleceurnce Pron t- recomeardci prirsil priwes "ere vem ar respect Cf spoctel dans waoen varicus Cealers am wart: vller circus toares. DréAvL Ss wit ssf ro SULT SALLS Rerly in 1°74 the Morton partnership who since cach, ur UO78 by traded wider the name Morton's Bulk Sales GIES) aid wan Carried cra discount bust, a Gre,don aud Rirewtood,Vactosia vore aupotrt co a doaler in respect of Stind chain saws and pares there lar, Peover toe tb appolpincent a representative of the defendant hes Yofael with Lhe business of MBS ond hed reported ta the selepunent ther wn, he is slip shoe he gives goud @izcutnls and ood ero therefo.c & man Lo be cncouraged at all Limes) Atel enecoasa sed iis we, and also successful im the selling of Stihl sere by retard. Th. Mefondany vos pleesed wich the veluus oF soles erd dir pronp unos of paytcuTs, 'ine normal price chorg-d to "tS uo the pecowseicsa reteat price Jess LO onl less 2 fur cher 88% oi tigre ,2inia thir} days. dn oresnecl of tos Tapes he tea redacticcs reom O° Th Que Jalier pore ow F475 fas Geter ue or toeca a prive This prize was @ trin to Gerreiy, upc iditg ag per' thereot a wisir "nore the Stihl products wore manuf cturcd, One of thoce Gealers who won this prize was Ilr, Morton in respect of sale3 by Ps, As a result he «ccompanied Mr. Large ths aerencont's Mans eing Director and "ir, Don.Léson the dofendirits lisrke ting Menauger to the German location of the Stihl Cusianess. The trip comnsnced on 27 Maren and finistied on 18 april 1974. Prior to tne departure for Germany the defendcat nad received comaleints from nd possibly their distributors cojcern_ng the effect that tne sales of MEE vere having upon their trading in the country. The content of these covplaints was not stated with eny precision, but the susagcesticn was that dealers in the country conplained that persons in their localities were bringing to them for service Stahl séws which had been purchased by thom fre TIBS. Pp 5 In cases where @ country men had purchaseeé a saw trem MBS it would have been naturel enough fer him to ceck anc in all probability to expect to receive service saw dealer pursugnt to the warrenty apnliceble to eviory Stihl saw that was seld. It ru of a deeler's oblagetion és ra) 7D py belyween himself and the Stahl orgatizeticn to sevvico the sows sold by himself but rot cavs sold Ly others, But of course the local dealers felt ovi.ged to #sa.st tne local owner of a Stihl sav wuerrver he hed preusht 2t. Stihl sawe at a discount, but Ciscowmt vas envheasised in the treadzazr + MBS. The namo of the latter 1tselr oapgesved drscsun: sales and be avallability of discounl prices was a feature of its advertisir7, which occurred regulerly in the Weekly Timos. That publrcawon penctrated the covntry areas of Victoria, Sout Wales and Tasmania and wus widely read by the classes of poersois likely to te purchasers of chain savs. So Sar as this advovtisia attracted sales to country purchaserr it prebrbly deorsved Stihl's country dealers of sales they melt have made erd exposed them to the pocsibility of ELein;:; requ:sted by locel people for service on saws purchesed by them fron 2S. This situation was receiving the attencion of Mr Large and Tir Ienaldson before they left for Germany in 1976. Mr Donaldson said that early in March 71°76 he merntzroned the matter to Er Morton when he visited Mortoa's premises. He said he told Mr Morten that the defendar.t was concerned eatcut the iunclucion in his advertising of refeé *S io}ue iw ct le} re [o) ty 9. ay facilities in rejlation to Stihl ereducts. Mr Nonatdson stated Bag that Mr Morton told him that he would retract reference to moil mer orders in future advervisinz of Scihl vroducts. Ms Morton sail that advertising for rail orders was not rontsoned tet that Mr Donaldson hud exprcesed concern at MBS advert:sing its discouc: prices. The issues in this cese rovelve fargely urcevnd this cortiies, The conteate of a neetee af ern el ttc ee ble Ge Mp tM peg: anc Ir Porvon cover pi cue cans OF mem or ase tes 2 akg lt ok, requsarc cars:@oration. Also reference to the precise ccntents ond the pattern of a number of adverticements of MES an Lave 1975 and che first five months of 1976 1c necessary. In 1975 before the special Christus advertising for that year MBS 1userted an the Weekly Panes a regular block advertisement stating "Chain saws from (C5, 'save more dollars! aroondah Tlighwesy Croydon, CO Whalehorse or at Mortons Dulk Sales, 48 I Road Ringwood, Phone 725-5152". In 1975 eavevtiscrents .ere also regularly iuserted an the Weekly 'imes specifically in rot Of a nutes of SlLinl products inslucing chain says. 'he ue € Hi p advertisements were 1n gencral form according te ée blo-k sv.pplied ie '3H c sa t4 m9 i} iL jo [o} & by the defendant ond drew attention, to the merits of Stihl saus. A saw and ovher items such as Le] motorised earth inplenents, fence pesv borers ane hedge trimmers were illustrated. Just under the luvend, MOS inserved the words, "Save more dollars on your new chain saw" and added vor z mh V wy emnen 4 Words dortons Eula Ciles at the bottom of the advervisement tne words "Mortons Eu Les rv ct qi OQ ys c c aa o + © ~ or —¢ |S ws ~ on om GS 48 Maroonéesh Highway Creydon (crpos Whitehorse Read Ringvood, Fhone 725-5133". During the Christmas pericd an adverviserent of a Cifierent style was intrecuced alongside those in the styles meni .ored above. The new siyle advervisomenis referred co a Decemter and New Year offer, couisined an illusirztion of a chain sa, and a annourced "15% off chein sove ~ Stihl - Homet te - Poulsa - Dolmar ~ Pioneer ~ MeCulic: ho - vonsereds". ly referred rhen to Kovuca 2 parse cent ot toa als Pooh my fg = a 5 r - «" and che addreccrer ond phoac tombe: ot tho el teh dash ou, reso Bul on 16 betray 1976 wie aotrog@iced. It vas in recnece of ogver hare vee. slyl¢ ad cortois vVarlals ont tThepee? thac ie aeltor. whic ubianctl hy bteeue erseiert., The are shoen in kinepet dd, le vill jor epperved tlie eavaiteam, ac of 78 Plotrausry 1076 Suint sas parbacnlat m teis are weatirard,a>i C278s glared respect of vach mods]. the retei.l price queieu 2 awoun! of tho ak fontant's reec™ Terwkb peice, It is bo be observed also thai the edverticemoac erates "atl orders, fend cheave aud near st rainy stction", Ib was the first oi tie adverticeient? "EO To Teiclod "ali o1cers. On or about 7° Vay 71976 tir, Toagddew toreanated the deeleor. of WBS, we sead ls cis this Locause (I'S heving primss do vo retin | advertisin, for sel oider bestrers at reracton vo Staubli cor hed coutanmucd so io advertres. fh Yovteir me iver, rs. Donaldson hed never regecr Tec han ve refrain from gavertvseinge for rojl order Socares3a gm Scill cass acd thet he head novei ageced to retroaaa from so adver cicsng Ur Nonaleson had obgcccenr te the anclution an phd édverticomeavs an the Weekly Tames of the siatcments of "rolasl piaces" and "our prices" ef Stahl saws. £o29 twpat ke hed agreed to clivsnavce this aspeck cr hae eavertisin. but sn pes es aa avvrerevalyart OF 1W2,.cy 1S%o nN nal wasiel te co Chis. cf tual @ loo use ume Cuvee an i? Vy de ' ae lie - moos . " _ 'e ri" \ ey ST) Ctrep Uru ows tr. Pe cee tab ut. Tole Leven led cre ma theo neue pepe rat 5) itv; Oe ros . 1} ye. vilidg wn th ~ ae GNad Vatt zs seuaher. ah tha on ys =] ele pie PF that every adverliserert to which tne @.-*- Upetarl prices" or Nour DYLccs that iiBS were a G@iscount *Ye%et MeS's discount prices of Stim. poasls coud be ceLoalacer end aies9 contained an invitation +©0 the public ky ap Dusinets Dy ret order. It is convenions to refer first in scme detail to the conversavttone wath Mr Tonal dson evidence of Mr Morten as to his un March, Agrst and Me; 'e765 on the surysct 0 necessary tO keep in Lang thet there was a Geley of ven days or thereabovts vot.cen The acaigr2ne and unsertins of & worticuler - oO 7 a advertisemcn= and 1ts apres Times. I have refered to Mp Done#iisen's ev.dgence > hah le spoke to Mr liortor of his concers at the advertrserent. ayvaitirs rats orcer business if ecrly Moreh 4576 and thet Tp Merton naa told him that he yould Mpg pact" thet wind ct agGVCITLUCKONt « Accordiné a 4ypeane to Ih: Morson what Mr Donaldson hed gaia to him apouc adver. lotto in that corverr2¢ion W3s Nyroutd Io mind Lot Advert LS lng tho discount prices on Siibl cpan CaN Cee eel WAS upsecei ne thre other ef dealers". fic Korten ward Haet he © ok ao bsod ac ordain y- Whe oc rT 8 Cot tl ae ae! rn': Poa cle Veelly Dames Cn 3 Fach e1G "7 Tate wo, Put or Om Tt Gab & advoriiceroLr in th> linvever, on $1 March, /% April, °o Ed a c C ¢ reference Lo any Svial p 44 April wd 27 Aprsl an advertise sn. in tne samc style a i that Yr last mentioned appcared but it did have a refererce to Surhi saws. After the echedule of Homelile, Pionzer, and McCulloch sews specifying "ocels and "revail prices" and "our prices" thereof tnere apptarca the werds "elso same cavings 0.1 all Stihl saws and acectsories". Mr Morton stated thal on 22 or 2% April i°7C Mr Donaldson rang him and said to ham thet he had Leen advertising Strhl with discount prices cgain. Mr Morcon saic tiat he denied this asserting that there were no prices stated, ane that Mr Lonaldicn then replicd that even though the actual prices were nov. stated Mr Morton was still putting the statement "similar discourts to Stihl chain saws and accessorses" underroatn the stated discnunts on the other chain sew prices. Mr Morten staled that Mr Sonucteccu conplained that this was what Ilorton kad seid he would net do, and that he, Morte. then said "alright we will change 1t". But the advertisenent cf 2& April did not elimanatze the features cf Which Donaldson 1s said to have corplcinee end which Merton said he would change. However, thac advertisemen? would kere been preparea anc given cto the Veekly before the cunversetion of 22 or 235 April. It included & cpceifuc reverence tc one tin] model namely the O45 and at did stave "retail prices" and "our price" for tnat -.cdel with thet reference being followd by the wores "Samilar disecunt. on all othe modere", lo) cr & u _ on Lo fw tce a ~ Mr Iiorton said thal he hic inctuced the p ¢ hac } he a7 u 3 the 045 modcl an the @f@voctisenens- Dbecwise offered a speci2l deal by lhe defieacunk vath that model as tae defendent had reen having seme diftscales ur Morton said he theacns that in the circumstances apply model Donaldsou would not obgect to detarls of the price discounts of MBS being aavervised in reLacten 28, 29 or 30 April Hr Donnidson ranz ir tlortoa and a corer 3¢72IN eceurred of which NMorton'ts acccunt in evicence 1.46 ©s Q." Do you recell so far as you are avle what ke said to you? A. --- le sc. I 24 Q. Yes, did yeu have any respercve "Well uc ave roc", ard he ad there _n th) previcus vet "We have tho praces im there". Lo said, "That wes Lotene you mesvicnea about st lost ciire. Jt vas alrecey an carculévion", Tonere guet Trricett area fie, « Ly ad anching you Co you ebour it? ---+ Q. Dac he chen Iv q fs Veli hat > Le A. He sazrd, "it change our r: J ya5na u woul elle annoycd 213 sa yourcel ir, aul slorc cd ! receiver cownl, It would seer tli Dovaldsen either aid not uxcer tcnd or was gust wiltprescea ty wie refererce to the ocvertise ms): vein? "already Cres tats I - 5 y aireagy in circujation". It would also seor + re converssricn and as a reselt of the conversation ef 22 or £3 Apral i t 3 Mc Mortcn had alre.éy tablen ection to renove c]i references to ~ ot ee ale . aos aps wae . cethi an the 5 Mey advertinccent, Boat on 412 Hoy em coverceroetes.t appearce "enéMour pris vt! of the uv 045 model and stated "same dieccunt wall apply to other models", It would seem tnat although Mr Morven epnrovel that advertisement after the conversahion atl the end of April, avs concents comtaried the very matter lo which Porton said Lenaldscn had obaected. Why this occurr<d dcves not clearly appear. Whether '11 was out of Morton's annoyance at the tone used by Ponaldcon on 22 or 23 April 1976 or because of seme lack of cormunteoeztion between Morton and his staff remains a question. Put it 18 cleor that before 12 lay he had decided to cempl requirements because he remodeciled che advertisement to the form an which it appearec in the issue of 79 May. As remodslicd the advertisement referred to Stahl, Nomelite and other sauc, csdG noc at L mention specific prices, but announced "all at discount prices", This remodelling Coes achieve what Morton caid Coneldsor required, namely,to keep the discoune prices of Sulhl sens cut of has aadvertisercnts. Put fir. Mortcea failed in their teicphone conversaizen of 12 and Morton is the reverse, It should be mentzcenec thet accorcang to Morton's evidrnce, on 12 May or 13 May he nad occasicn to ring Doraldson on « matter not connected wien adveriisung and told nim aneidentally that he .oul4s pleased to know that "\e will not be advertiszng prices o2 cham saws from nov on" witn Mr Desaldsen replying that that was good, erten alsc gard chat 10 wes later that seme cry n aftor Poctdcca bot cay the ror ela cP Pt ky meV on rar 'tiny LlecuUltT fst OL Lying, cud on a very ebeayt convern2tion si2zted that lis ecalerentp wee terminated. Donaléson said thal tho sulstance oF this evideace %as quite wrong. He said that there wae one regquirems 1 that t:e made to Morton and only one, narizly, that St1hi's produc.s be not referred to in any advertisements which offered them in respons to mail orders. He stated that the elimination from adverticen: of references Lo prices, discount or reta1ll,of Stinl products formed no part oF any request or demand made by him. Ho ne a roof > oral iO7 recollection of any such conversaticen on or atourt 72 Apply C had after reading the advertisement of 28 April 1976 ruag Morter and ssid that he was concerned ahout the recummencement of Stil products being incluced in Morten's advervisemcne wiierein mail order business .as also solicited and that Morton had that "if we weren't happy with 2t he wouldn't do 1% again". Donaldson agreed that in that conversation he did make reference to the defendant's marketing policy with its emphasis cn arter sales service and sald that the defendant would nov supply Morton 1f Stihl sews were advertised sn.congunciaon with a1 order advertising because of the possibility of the re...tencess lon of the area in which the product vas to be use An aspect cf tne relevant events as related by Morton was that having told Donalcszon in ivarch that he would cease to advertise the discount prices of Stihl saws he nob only ceased to advertise the disccarnt proces but left Stihl saves ov oul of his adverlicentnls. Inis epmeare vi tue advei.sser: of 24 March and 5 tay 1976. aArieuye out of this aspect Merten Wao ow do ya. booT7 advertisc7 cnis: nw Lo hoo. Q."Why G@id you toke Stills cut al toys The peso tried ts make the *¢ £9 it could e) not be nulled ir ane Q, That want you cre not «ad un that case cten we 1s brave it an to let ae chain s@Wo wich ut try Q,. When you took frczhi ouc of hed gusv douse a fer? and weekly Tames un t der he sold Ovi at th re-work the ad out. Q. mt you spelled ovl in so any vords wehav you theugat yeu had beon tole in in #cvor..eemont aug ver vere net worried eLou. aay tance anc you vere VWLLlame To ULe may words, hove vould vou nove Gone at? st vou md wanted to enrry cut vat vou tise ot you hed tegp revucetod io Tt L do end 27 you meg wanted co put 22 an on. adve? tie dealin, w2Th Cvihte one the others, vaet would you u.7 me put? 7) Hat LS VAY VO Mtvor fot arounG tO working cut whav \'e would pvr. Q, Did you try 2 at never cam Pftato tried ae oe tricd to put it down but © Out an tn2 pr Q. Have you eny ides vhat you tried te ssy4 have thie 745 zr, tiy .er? a moe "1, veel gather, they st2il vanuc co prerove wid Weve £luchs oF. ' Q, You decided you woulé suz ine price in and chence ot as that rigat' fae CN T4at end ae ot dass wie we made the lene 7 tie petoal, vale d that particuls ' a arm lies co all other ' Was MIC veut rs the sau thi chai saws, 1t but ther vas the e MR. LLOYD: . was the listing am i "ete peters and your Gi > t Seraclars Gelete cil rezerence vo StinLe---L cavern 1 sara to Loo mowe cule remohe Tac aavert. Dou2ldsc adic yeu revere 1i 7 9 L Lae soma an bea L-com a MR. LION: You tv -, CONSL. O, ype ye era tae re AM WW ter ae, OC. So nl tne tim oe hte pot fork. mel wpehin you were mo. ad eras ay. tel ord rivees a. Gad Mob anclucc that on Ihe lec, me. QO. You arrenintiv wade th. decaeiscn to conts nue ag & me,l arae> Udvertrcior, eet ortoall viet yoe eomrig~r co shor. G3 Q. Why did you noto--titsbod The advertiscvents Lear our the contention of Morton th. he adoptcd viricve erpecrents un Ticm eon The prices. from 18 February 1976 o.ierds trere aprears Lhe the listin,, of prices, nol déietc th. Tis vin 'Diseem & on Cbril on. you hed «nm tla woos wit been easier La hawe Gule ] nagdo7o ca wld s ' Nobody « ac ayyvltv. i Bob Plo. Tauren, cf) 23> Ul. adverti.iaz m 72 clay, T pleased tu kro. From mo. adver Lagi Chand ehean Tanish sud so sud cur te already am tne Les, the having a alvoswic vrice. discount prices, bue uc order thaus : was, the airi*i notching." 4 bh Bub ian every idvertisem nv of 21 J saws by mail order. In his cdverlarements relerrin, co Si from ebout the o2rddle af ficrch Vortor ticde considers bl. relalion to whet wes said therein about the prieis o Saws. a In the advertisements of 71 "arch, V7, 14 and 21 fori "retail prices" saa "our priceos" vere spocirted for Homelite, Prouerr, ieCuilecn says Hi savs 7 wen are sre Stihl sews. Tn wnat of 28 forsl erd 12 Vey the "retail vraicot "our prace" of the Stint "y of any other £11ib1l medel. Ana of courer Lae fins] step talen before to try actual branes 4? diay ves, es renifested by Uw cdveirtvisowent of 19 bay to solve the proviry by «liarnatins Tromthy advertig. geladal perees not only ef fcabl cows but o7 ala otner @égs well. There puct hea bo -n oper oressom ty om ep 4 tr a a ' te or botee, Te 3) Tye, fool oa gn Loatlaceute reouercn og. Whe nts he atopice Appeer tome vo reflect a situstzoen ac al Chow Copeet ous fo the ooeertacun 72 the @ scount neice. and Tlorton wes GeosemM pl Fl. ae Tk yp op etal ed ye. present has diveeei toa. TP Dennde ont pecuiperen® related or sols ako. Lag BLP aS ar yal' have becom repomhaltys nosed ercobl Morew ct du set bear an retusang ta comsly cree Thar. Tecwii-, ca. Re erOLar ere praces y7H a elon ctu Trem nie port et ct. . LL woul Poe been alwout a tocawial pcep lo or at ine cl lier to mad or ter, potenticl cu-tcrerc, Donasdcom 2 2G the tae ert echy re volrtin 2s a Mey 1676 wuier .7tl tt selina Ty ert yu a oa SS Morton what the dafracene vs a) Tao. he es rR ce the @- fundunt tied creourcceed PBN Ao Fir loua pe ouc ee MatbL ca oe ee vay". He agresd that cn ie Bone yrorg onc cai thes f * reforurce whereas 6 AP Ltrs nent rt eee ea er" the following Lot... (9% lbs eyadcloe fens wd Q."Did you ever novo eiyehorr te har ltt ooriees im ubak CONNCSLI TH eee the) May ores e m@il cre we treat ang ArP iyo. OF CC WTI Teaw i cn Ged onoat, ues bol. the mao. bel eee weene mel A ar TUPI ' so ' "73 . , mee Re a os L Ce. latvia: elt ato oby or Bear lene to ASN 2D) te price 6G. Qiu ote boars, O, Wenders cd ow me eos is es ers ee tooo 1 1 , ao 1 cyt ~—- retell and cur nrace2 ar conguacloco wien nail order advo: lh an. vo > Donugldsor bud no recelicotze of Use conver. sion of 12 or 15 lay an which loiwton seid thet "ILS would mo. be tdveetisang say prices from thon ou. He gard that the comyercstion of 15 ilay au which he verminat 2 tio cealerehip watrrds wien ne was vem engry, thet wt wag a chort shar convercaticon um vite Tovtou hed litile chence to 3pe.2. He sald thot hy opened che ecme-usstron by saying "I have ,uet sern this lacest adyvertis ment of yours" and that al soue sta.' "Io saad ic Jioerton thet he cared uct lo advertise prices in relarion te marx) orecr adve Ficquctt, we In this cerfinzey of evidence curt.im genera] consid-127i ons d are relevant, Cn cru understund tnaet vaigcerous edverticoned of saws at Giscount priccs end perticularly of tae subccentiar a7 discounts cffercd by iDS .oulc attrecl cusio:. Also us-stu ed the adverivisang in woe Wechly Taneso extendtd widely in Tasmania and Souiner NL. South Welsa. In theet dftys vben motor cer travel brings country vecnle to Velbourat yavh greet speed and convenience it would be likely tiat on occceiom ccuntry people frov distent arees ould cell @t Crovden or Rungvocd for saws. In acditacn the celeprsre .vsuld Ls avellerle to arrca "telephone orders". Sales to country people by etther of chese methods vould h: dcalers prices thar vb Ge caudeun to meso a eritsce lL isste vious IS that at i reo, 1 7 - 7 eos 3 ~ ase wae -: - ore Pane pies LOG. The . east a ce ye ek ee ate TE Lat extent Lo wnrch JG 1 ther ed cuctem by sftelanyg bo do karin. a. on py mail order, It scum, a big esp to tehe to ¢ ch @ ruce soful and othervise satisfoctory cloulor te Been. save clight! ond unissessed auclioarction of a pooblem cui.1 vas cmuced an reolity not by mail o1rdtr busancen bur by whe cev-rticeng, 11 the Weekly Tines of the Cirvcount priors, Nerton's avdrces «vd telephones moiber. Tf the atfunceok hea en ired wl would hive been arformed tart ebout 5% af sans sole by IDE wes by west onder, During the whole of the dcatershiz ancludaiue Lhe period valurhe 14 & = — <r advertiserrnius did nov oFtcr le supyly ly rail arcer these vel e@ sane "75 mice > 5 + - oe 750 savc sold, co thauv om all prolecataly, tue wupact ob thub class trade on the total Vicvoerien Gir_ershin Also sccording to tho dererdsny ivhee it would reqvire MES rot to adsci.use mail orders, Fue oo thy first mail ordur advertacurcnl did net apprar until 14 fucry there had not teen much tave for saves sole by mail order to upset the country Giclers. And of course ect ulersts ef tr- houd givinz conecrn to the deCendsnt had b-sa riceived by at wel te. o. that date. These could rot have hed any rp beticn -o mill croer advervising,. It 15 not easy the defendant vould innwce a vatel ascuc out of wnat wee ae most a peripheral "atter, And understsndarge 25 not mide esgacr vac it appears that wn2le -211 order acyertising issuc with the Mortens, movely in [ey 1075, Mr Doweddcofeqppera a a farm ctllod D*® A Reurpmort cs anew de-ler, Poroowra yer thet farm hid boo veévestisins chew se 2 in its vopliscw cn = ober ars Meye 7710 eof 4 7 n ( yaad ofa . an Me. Pomek Peerpr ou a the - Pl ee at ee ho? drevn to his attertuodw ang bhi sad aol prado oy cheuaty ab 9 whether DS& J a@vertised for mil ordea tecam se. Tir, Taree If the defendant vere really conccinge with the problems caused by metropolitan cates to purenacwis trom the countsy in é districtsserviced by other dealers then the culy way to more ary impact on that problen was to bring about a state cf atfarrcs _n which dascowtl prices vbtainah). an the aclropolitan erec not advertised un the coustry. 'Thel was really the only e effeciive way of relicving the country dealers from lcerrs of sales to local resadaits and frov such servicirs hurcens as vere Fy amposed on them by country sales made hy MBS or any other metrenei int discount dealer. And it is to te inferr-d from a letter «.riltten by Mr Large on 21 June 1975 expleining te Mr Orth, an everutlive of the German varufactyvrer and surrlicz: of the Stikl provacs:, t= Andreas Stillliecchis:n FPobril anc tus ecarauny of waren ube 'teres "Ths aoa vas ea vholly o med t.lership of jFS Lest ulen termanatec, that the views of tir, Large icre to thet efrect, ' That letter stated: "Dear Rezsnhoic, re: Varto._, hulk Cales David Yor*onts Lovbler certainly 'ives the amercesic4 he has been cauly treated, hevever, ie tacks cre as . meyer VA = Oy aS Thy Mortons Fuvl Sslec 1s five tiles his common Sales. Tne fuustralaa i eppreiv amass cne 2e compe tit Guct vere livtibie. anereecced activll1es att nit or Sales, in Tect i from ai? over Vi Oram or 2 act oa — x4 w = fas] [eee i Vae uhe rove an 4 oe WW aa became loss accive. Be @iieeuatre c ipist off sureesteg recat? noo CUR ne pPlte ces a . a . ~ Sat 255 OLY rucmal w seTolemenl Cis payment yalasn third The probleme dlive souce doy fie 2 oe Covi yop oF 2aod to hemtpe treet te ure yp ot re an os Ce as teu ' 7] . ~ - ive : . : . e ret ' PACs vy PS ete me ee eo, awpouT Brolin. So re en i. tat ' be uboer Tow ld Geetrey., Vala ee trletaesn oats Voc) Geant 2h. altho who lice am ulety peur 1 de give up fo ids Giscou.l or a frre Cha. Mine oto ome very ther thes could afford uo retoh Lopcouto ities. Fnclored is a ty1: peper is the "ae the rural eres ce OTR a . . will sce ab t.> bets . : wood ora]ns .lich Siso the 23: poteontinl custo. reo corn: Adveriicee nts voMe also pleens: papers, wie Copv OT 2 SPOcLCH © Duperouzeh day d Doth Tinuery, ay io c Dave Mortoa bis Bees. Six moubus. an Tact discoitisued ssa1c¢ lin; areas where he could to supply pie, feu but in Jiey ha secon. but to tae tne acti lees homers ve would» com COT ous ulti had nue aiterus cave Serve woe tot cr lon SE. a rs ~ G a oO ry 1s mos a a q , r Me As far is the encorncea, Iosec probles hurt 2 requirement fo produc as lhe variont poond we ch1s as not avaslsol: ve Dea 'Se oP Wlher monot,. 9 5" an the local #re. sent or l1ound tneir ily to The effect of the eclicn wo have toxen is preetor cort7de.ce and enlnuriasi from cur Gecler netucrh. One other utercsts pont . tdermineted on tae 1° Mav, he "he reason for this 1s that a Cnain f°... Tielid Liv, bachkesn end dorserit, end iwichiuch a dismal faslure Fuda ne write un the hese tuc? The stated velovent Cactors .2re, ia order of » oncian letver: (a) that tie tern "bulk seles" weant @iccount; (3) thet MBS d.cw sales from all cver Vaztor1a cond ccousec manv Genlere to ares a become Less active; (c) thar MOS coala nov atfored to nano varraiTy as requ-red by tno deferoant; and (4) 2 ; That peresus wo travelicé long aartence. teed Hoar sa.c 19 Local ditters Lor service, Encousor. mend by "LO oP worl ordes- 28 mesvioned bul cortyinly ne - ~ OF i In the sixth oersgronh of toe Jeroer Tl Largs told Can Orth thet Marten hed Loe a.are of tae Gltendartts cancemn Paz more than uiz monthc. fF so truc concer. could herdly Lave boen Guc to aavertis ing Zor na.l orde™ businegzs as that u commenced only on 12 Fcbrusry 1976. fd an that some oun Mr Large wakes clear not orly vnat that concern wis, but J , what MBS in March bad been toid ebout it, namely, that unless they discontinucd solscitin, bueenecs ab discoenc prices in ky . + to J deutcnlent areas where they could not back up service would refuse to supply them. In that poracraph fir Larg> describ the fault corsratted by M3S an vay. It vas, thot bavaiye "accepted our ultinatu.", in May they reecomencet. The ultiratum referred to coule brrdly have been about edverriasing for mali order business. Nothing hed occurred vhich could lox oO an Cu 1¢7) Yo-y agmD ec VN comp. Moo with ni ulcti..acum Lo ceave aaverc2a ny 9) a r for mail order business. Mail order business hau Leen continuously scught iu the main eeévorticercnt ecch week in which Stihl procucts were advercised from 1¢ February to 19 May. Eut there was a real sense in which on 12 May, despite an acceptance oF an ultiretum thet disccuat prices snovled ner be advertised, Lorton might be said to have "recormancec". Fron t} sixth paragreph in pervicular it cannot be Goutted ther tr Orth L would have inferred from tne letter that the problem vos caused by adverviscing discount prices in the outer areas. To my mind the letter gonerally and the sixth paraegraon c rs in particular give strong support to the essontiel accuracy of the evudence of Morton and seriously veaken that of Dorsldicn and indeed thav of Mr, Large Having reserd to the forepcing end heaving yen and heard these three witnesses ot considcreble lenstn T an satacfiel that the erfuondint hed @ genune anxieby ebout the etfectr mn sf a 2 e construed as reconectncerent of something which had peoviensly of Stahl saws in outer creas cs @ Mmsult of the penetr iling advertising of thewéisccunt prices snu that Doemaldsoa mad> t41s clear to Wortor end alco mede clecr to ham that the aecendant requiree ham to refrain from advertizing thore prices in the Weekly Vines. In the course of the procecdanijs an cttempe was made by the duferdent to establish thee the motivarion for ats conduct 2m relation to the MPS advirlacemenig vas Lhac wader the HBS ha - ow ne nde tani urcduct:. terms qo I do not believe there wis any sigazfreane failvre un this resvesc 1 ayorcm at + 7 - t The real conesrn of the dotonideat Cust cial So oweilodiby Wh GILTeves a, namely trac country purchasers sortcines ap lied to the neues. «cuts wm ct bv fay pas jon Ge i rm G i] Fy fe)ep) Q ip] a rsh QO fo) & i ran aw the warranty ain respect of savs purchased fron ilss, Svecrfied Prices Ne The allcgation made amzanct the deferndcat and sev forth ar (- at the converncement of these reasons is that the @efend-ent Ty attempted to induce end did inéuce IBS not to advertice Svinl chain savs and perls therefor supplied to then by the cufendain? at prices less thin prices snecificd by the defendary co tho prices a below which such poods were not to be ecvertisel for sale. Whether the defendanv's concuct constituted engiging in the price MALNTer awe depen established noc whet tne dorendsaiuy andusec or atkerpte Sogct shor thoefor tbat there wos a price specifice by Une aeteucont io 1T3 an 2 senses tuut was relevant m0 to the edyvuerlicangs by MES of the price gt vhichthy ould sell L the goods. It 41s conceded thet et all materi.ol tires lere war a recommenued retail price of the deierdantts grodc whach was commiicated by tac eeferdent to MBS ond tu cli ats ducslers, That price vas an o real ecnso a cnserfied price, it was the spreilr:ed recomunces vite. Puloas cuch av icd no 1ihesens relaticnebip with th, price et chick "ES inebt idvertalc. TP the substance of vhet the deferewent hid antamuiwd to -TS vos "erely were that they / not te aa@vercise st co partreulsr rrice thet vould ack offend 5.48 of the Act umless as betveen the vartics 1t vee usder-tone that that price was umacecptable because it vas less thin sors other price winch vac spoc ified an the conve oF Veing ehtsen ty lh. defondar.t and communicated to MES as tue price below \ were not to advertise tue goods, The question is wnebner vhen lie ia derendane vo édaverti.ce its @isccunt prices, the recervorded rute_l price playce a role as ihe bench rark,e level destisr. cea by the cefenc...t es the leve? of price below which }-POo vere not to aavertise the gocis fer ¢eale, Tt is to be observed thst av between the defencurt and FRO a refer-acc to @isceunt vrices anhesently denoted a price less than th dG Lone ut! recormended reveit price, The tern "discount" nisyed a epooi73* rol. in the cealeultation ot prices and payments ef Lele D en the defonust snd MBS ent in Gceseribiee the praces el which "IDs cose Lie Girceun 466 ch Vere uin: Wee Used ohe ede blot ot wo Wb peta) Boo cee de the reconmndsd roteal price er vicki acld the poorer, foe Ve when dh: @cfencrrt untaected ais derare or 2: euiremoer tf taet run nor ody veese Arce cm? vupeecay At y neers thet per do aaron requircrent as the pric repeated in April Donaldson cure lLaimcd ¢ chat (Tis abould wow edyverlice at a Trieo leas then the recomiaude. ictatl price. Im thee ccubext Ure recom ided revatl pricc ws the price cpec:siicd by the dePonden @€ baw which 155 sroulea not adver cise (bo cite ier sele. T acecpt chat Donildscon Lod eshed Vorcon an Leareh oT S a. to advertice IL: daccouny prices g2 Glabl e-ru, thet this we. sui; tener #6 the end of Apral end chet en 25 on 7.3 bout "the nraces" cn the eavertiu. ° ihe prices" ver. th? retail price, thav .s the of 28 ADVil. recommen. vd retorl rriace of Lhe ¢ rice of MBS for that rodeol, Accordingly 1 t+y) G@efendent did cngagc in the practice of we as alleged 1 defend: nt in respect 5 May 1975 JT turn to alice "(b) an ea OWws Mort om : advert end suppl) y in e¢llegavion(.) set forll: zbove attermmt te induce VBS nol to adve advertising of IDS on 2h f the «@ o a vracn (b) referr.d Lo « hor abuyve sate price nar? Ly chet : it appears freae the evidence thet on 14 May 1976 aL ocr 7 sp Denaidcssn hae wld forlorn wpat the Ceul roniv of BTL Morton raag birye end robes iod, Levee repeated the 97]: 2at1en that Morton hua Jaca ubour ais cave rbieins but sand he would badis to Donelesacw ahoat the merter, Toertoa sajd that he enuld Lake the m-iter uw "vata tae Truce Practices" apd Large suid he On 13 Mey Peutliuen teld ome Goon=1, the Gorvendsnt'ts Pa ' wareLojse supervisor inet ! Le supslteu silk Stapl unri~s or narts, aud ¢ told hin that. w2s @ealership ves desinately termannaced end wnat the defendant ied ise d @ cirealtr to tact effect, This v4.5 60, the carculer sas in the folleviny teris:- "14th Hay, 1976 PTO FOR; ALL VictcrTan & TACHA 22] TLALEss FRO": L.R. DONSLESON - MARNTTILG Maik ome SURIECT: MORIGCINS BULK SALES = CROYL! Please be adyviced that as am Croydon Live ceasee co be am authorised S Should visor ous eminent in tie netr 2,4 relate to vhs uic. dealer carracd." provetion of our preduct boconme 5 be advices thas tas va ea be v7 2. Thee ' * ' Guy we Vie, as. ' bey etec: Lhoid-:ags wnaich this = hare Therealber Iiovte.: wrote to Ir Crail, the Sonror Si.ceutive Orfice: of the Stahl Co ;cny 1a Cepiaeny cespleamams wer his dealershin had been terminerced and aeclipe dun asceustawe in the patter of having 1t reine" d. This cowplusat an2 rcquest was reterrld to Large who replied to 16 an the terres of the Llevter of 21 June 1976 sect out ab Having remarc to tne necure of the bus:uess carrie? ca by MBS it was of no intorest to then to obtcin supplies fiom ike defendane other then on cealership tertic, narely, un sedsicncc, peyrcut Por vraduets wos. with « discount of at least 207% plus % af made within thirty days. Th2as was hme to whe dcfenleant. It ia ¢2 with goods therearter., Cle:rly this ves the way the derentint urce> stood 1¢. When liorcon protested tu Monzaldcen ene Larze and ir Gtil.l about the terrairecion of the degiersalc oF wi us wae IM substance requesting reisstatement cf ins ec a dealer and e contiunuavcr of Gurwbics en Gealersi.um terr3. as far as the prrtics vere emecernmed (the terns of res aetcec ome nl and conlinuation of cupplies wore one ane the seme thing. It vee this requert wraich the definiant was ams.oring vien ab refuced to reinsterve licsS as @ dealer. It would seem therefore that as at 15 liay 1976 enjd thore- after the situavion as mutvally understood by TPO aad tae ar defondart way that oS vere requesting a continvetion of supplics of 2f that M85 sheuld nev be sup olied tlhopes*ter wach wits or pares was abnolute in ierms. foe doubt he vos To re undeiccood av cayang that there were to be no furthor suprztics on Gaalercisy toms, But he did not need to he 2co parbiculer at any rave wit respect bo units, es oprosec to srerc parts, ag he knew thay Mao eid nob ware suppitr.s cf unit: on any certs other then acsicreirp terns, parts did contim.e to be: ele avarlatle vo TIO later tu i976 bec only at recommended rceta1rl prices \.1itheus any tzad> discounts. On the evidence th- Goalership cf IMS wae of uneervain Cusc eau and so fas as its contractunl provas:ens were comeeis of actur] cewraunmatien the Ceteanwa 2 reasonabic notice, fused Co co busincos with tne wat en. w-dler, falbliy ca it was treeting ITO es hiving no mor: cnvitiv. es ta suprises oF St co we saws than that cf any mevker of who public. Possibly at cay bore 2) becn lichle at ccir.on law for damsgiec Por promirure termine Clo4 o7 the dealership, bot clearly 1%5 Ge #2rlinetica co treat t dealership ac teininated forth.ith wae quite resvl and 1s scetTicw ct thereafter wore referrable tc that sitvetson., Dut the plaintilfi F3 claim depends unon the Treads Prac particularly s.48, 96, 98 and 100 thereot. I+ is inference thet but for tho cefendent! advertising by Nee of ats dascowit prices an the w#eelly Tures not only vould tne dealors.uzp nob have Leen term nclod on 13 May 7976 but un All probability, 2 would have continaed for ayy - A anim bay ne - fin - - ae ee a ~ -- a sudrtocieal poviod taeilancons. Tne duces resting uron the oN ae tr AD he qince iS ed eT, Of tee Fe yt. tp cl rhb PoE Ge et ath ba wothheld fur & re6s01 wre lu .ablot by whe foc, Yo chen relief an resnoel of Vue te fox wists em olulal bu i275 vo supply un:ts ts MBS cu dealuersatn teres Loe pleintref muse show, os @ first p04 thet qdhet » fusal was a viurbolein supplics wituan the ~ cams of s.¥t(41) of the Act. I comsicer the watter om the busi. that onmaie weg ne voutatlndus., circ ural risht to sugnlies, an other vores t. 4 an ls HES bid become on 7% iry.50 Lar as the de"endant var cuncern d, a ner member of the public who reguested euppl: «oon decLerclip Lens. It appears to me thet co coussdercca tic refusal by tle Gefencant vo Lunnliy units to IPE diacucsec ebove weo a revue within the terms of s.08()(a). It was a refusal by the dese u to cupply unzts wn TBO on the teins om Which tuey were rogues tris or, in the ivords of the relevant prragi. ph of the Act, "3s reouesied", Tht a refusil to cenply go.cs to ans hier .t.o requests trem o2 terme on which te suppl.cr 1s unvw2iling bo vreede witn chat other smoutda be a vitalelaius ¢ meaning of s.O8% )(a),deos not in vtecli'aunlts, Lat the sumpl.es by withholédarg tae gocce 15 1n sovye way ectin of the Act, Scetion 9: (%) 18 concerned mol ts creste or define obligations bat vo state circuyuctactccs an vnieh 2* othr Dactare are operative in the transactson, the tutt) condues gay olved 7 7 constitute a cuitrav.rnron of s.48, Thais ray erzrec iter e1is. by of the provision. of conduct @ fayed un s.6° C1) aed: tar t n> purses of s.G00G) (a) or (¢) as detcmes to cus cptute whale lL, oof suppl, 1s \ + el . 2 Accordinity, that s.08 (4) (.) .r.ould be interroe ed as extonding to a refuccl of & requrs., even by 2 member of the public for supvly ci. any surpricing or unreasonable or ovl of hurmony with v thonsht to te che ,arpeses of the Act. Inie.d, thoy 1t chevld ia anterpreted in 4r uarestpicsed orns vr lu ores to bo on accor. ton those purporces, It is the reason for canduct wach is tho conecry no? - Fa = Mm. - Lt 4- 4 ra - the Act, The anceuticn ov Lhe uct ac thet surpetsgsion of peca pends price reanterare:, Thore 13 therefore mo presse To mead seplbice rears Eze lamitaticne anto 2.98 (1)(e) or andee2z 5.98(4)(1) or (cc), It 18s my vie therefore that in refusing supplics to Mes in the carcus: a purposes of 5 to MBS. The rema*ning duestion there core is vaether if has been Sas -, aanare ths = for the reeses that ie shown that the defindcn was .ikely ihat h3S uod cdadverrized or were Lihely to eevervace Stihl saws and parys thereror supplies to then by tue ae below vhich the products .e6.e@ not tuo be wuavercieca for sale. Having regard to what appowts corlier un there receons the ot pmo - la on ~ yy oeytn n cor = a answer to this vuot be an the aflame soves. Tho anvaimerv oon gretiare ly aa che Pred Vote, Bon eyed Torptem 32 uhich Lee . \ . : - , 7 i we 7 en . of (2 icy GD or pk Ok Lote Pate cP ong Seer gosh was stated acl Greet severe of ¢]s stabi reotuete vers ind.es 04, Denaldson and Levy. rec at @eolur to Per von that thes conusaerr¢ that he hed lavd to thon ag 13 Lvs wnt + Ucr not to adv stise lhe discount prrecs, end it Ls a proper anfestaee Sat ines We ~ 7 ee oa 7 Fale ana Sat rat o ' . ed thet 1P lio oltwine? supplies misecen craid @.ab. Cav re ok: Ty coe1iden their discon. vrricesn widely amb umn val pw belahicy an the Weekly Pamec. prices belie' below .aich the reason % of Stahl chain eve and perce. wisch oasal Pe suylaid to finn, In substance, withdre, athermcdgsect for ooupetercw-tho ase Ered v ond e cemtoxue i.e of sunplies on that beeag end thy devtuecn. hes vo raguss art ad 2.7 to supply (tO vita its urcduces om Tiore tev. Lt mur be oteepes: thit the facts in tenis care are such thet 1.409 oy ere cen. Ga vinat basis the rots Ll of 2 rev for & "earon wire That ag a turcen it surte clearly Tualel to Gisceaergpe. Dealines os. Vem rs ' ca -1 at +h 14, 3 pte sy . forth at the cannon emenuc cof I turn nov these reascor: vt mauccd ee OO Motor oe eens ioe ras to rat va lL re a -. 4! 7 Pty. Lice bere uur: toe ue] - te - . ' ' . From the eviacones of wir. Vollasvaicra atorgp ore that et cll waterial tim 8 he was + Ghate hale rp anced carector and re napsr of a comyony Rrem as Toursde Motor ind Inver Gorview Pty, Ltd, (Penausula) whic. comms tou the wu. see. of recezlany too mork rg of uh> public motor woe rs, chant ative. tad other echnical equirmenat from psremtec¢ tn Tloreanshom wea Vrarhecou, Vielori. That commany becarn a Geen" desler wp ash. Tt Lecome cui. dealer prior to the teimiurctien of che dealer bit, os Wace LT Trading Coy GUY) rovers. to eaplicp an the, reosous Par ye agen In Dece Der 1974 th. deslopanta of TyPowen clos te ted fer reasons Ciscuss +d above Th Mov Py Bresca2 Bevunr, 4 partner au naw? pmrcavhed fir, Wallsewrarsa cad recuse it the t Mr, Wallesv.ers supply Stihl products vo ha, Mr. Wallasv.c3 agreed, The baris of ctreaing yo. Tet Meat. povld setl Stahl Savs to /uT savinathem é d:scuunt of LO ner cent of the recomended retail orice provided ap yrent vas made ats: on Celivery. Tis Borincres 14s te le dom- an a nove otacr cucn KT to lesson ta. charecoe of the crrcnger Lo vise defendimt, Eut it ci@ tbicoerttene nto fast 1975, Tne defendent throuyn Or. Donslesw void willocsacre Prato, defenéent wreurd tigat he would net sunply Clahl protuecs to rT and that if he aid he shiowld do $3 of the Issacs thet be ahlewcd KW? a discount ro hier then 7G cer cent. Pr. Wrellecvaar: did no! comply with recarsl, ike t)lered wis proced sre by which bo sutpla 2 oth. aces to Vl ts. conecel the tronscetiche from the cefenltct. Lee iar con Urintovar not och ved oa oa Me. Moab Veber cee et ee a ei ee a sdb endl te TAT Tn Gctobor Gee pp. welbio ow el cer, cd to ser by PRY LD crac tla Ta. had hecswo wre taf ctor Ge te bape cur eh ba a Porn, ' 4n paymcuat ry Ket, a Jt tc ape? at frem cle forerere wad 1 am ratvaofisd wae. th. deieni-ny dae an 1975 otter oe aruneg TM ranculi wv lb ta sel] lo hvl, Sriaklo: wa encperts tian ePop cay der d toe ab uy tie @Qefondant @* przccs Luss tae. orien 8). Clast.@ by the uel nderd, IT have cons core 2 tuat Tle Codon oF pros ennlieni contravemisnc lf (b> cant. ctus,. Jn ine resnit To-r that the plotnvit? Nas established rhet the caminys wou cle An mm by the aovenct> ps alseced an th. clbegaracus (a), Cr one set forth ot the com cnesmert of those resus for boyy thereby contrnaycned toe vrevitions of v.48 ef Cire fet. 2 ucule. been so cliaefaed Fo the crlrvsel omuc rymlied a" a'r . It is necescery Therefore to contsdéer wae sw ony and penalty th Coort cheuli order the cei nderne to wer tg tle CommouvertL ho an r-apect of th conduct retcoped too an ctea ou allegations. Penslty Sectron 76 of the Act rrovid-» canto gm the eae: ov a corpor..tion tne exceed "(269,000 an peenect of cech ecl an coutr ewctisn et a vision of Part IY of the act, in wlhachn 4.4 is te bo sich sures the Court Ge termance to t regard to 21] relevent sitters inelud.ig the meolure ond ois the acts cr omission ond oO Lory Taseony + GUY L956 Gl ¢ to be avurara to the Coc an Ch Lon uy -}-, + ad - My ow ~ - -¢% co ~~ 5 the act cr omin aon, the crrecrsbenees ian varch une cet or cous tori pt ce, euad Loo oho cha perear iv STvLG Gy bot feeal hhayeo cap te ae 4: hove H r t, ut "1 ate 1 en ote : oe . + : , : ot - boa, - ~ . . ros ol - - - ' * 1 wl. ' ' le - ' wede oe co st opee sr ach Lilo ove uh rar ert et im wae , yo r . - - Ve - ~ 4, 1 Compot ati 'alt hy wath CO 2 Yee Dl an Woon ae c a ac - 4 ss , Ploy trop tru, 9 row ot i eT be ioe the obgret of th. fee iu bo erecece ¢ udvloine cu woach che padlic whll Eene Pav fron ade. a ec, Dota with ouch other an 2 pricesuditl ec Ly Trio bet erence wepored bry cupetiees ef goods upon recs © OF GL Pon dae ete pe ast ouph te aur als danect resale price restr arto up mis. Tr foe. cue ream way oes CePouldalT av avtatoe o L| Ueeler wos That atiov pave p ood tree s-in prices to Curtonsis C10 coc by cdvertacing ute discourd wrazcer 63 clo oiy Ply orhroc.sneoue Vache ria, Soacsers South Wates or b Clo cu weve] yo and upeccuchiy reed by cube wore pred yo PL°1l marehatere if sbihl seve, May waevars ly pat o Stanl country Gevler-. ee LON Q oO c im r wdii it ueWw o Q I '3 Cc co £ ri Lat oO a of the specific subsotonticl savings avauslable to purelrcerr trem MDS. The logic of t¥ais 1. apy rent bout se an ire allerstaite, Hn er9 won by the Glfenceut .ore etlculuted h purpose? cf the Aci an a direct erd effective wey by redvearg marcy compctition net «m2y in cawtry eros but also an the weltoyclins areca. To ettemm., to maintain tne syetoa free fre vrics covet pow. between dé-J by Colicei socly purcunag wie commu: GF coast forbiedui. Ly uit Act fas a serious co1.troventiom eof thy Aub and wuss averace «4 penully. It is epucrent frou ol Giscuccrcn vs the foot. oarjacr in thero reavors for guar rsrit tae T an subslnce the ocfentunt bod snccer dd by 2.8 unlowrul proceun, dn persucduy "GE net .o .cvorr.sce tm iy Ciocouct rraces, Tr my OPN. 2 LA te rom teas Toopetibie tte aan) cp oan whe Meer ee Fae, a a (0 oe rae yok haba es ; - : > 7 ot more Se, undopmrn h e the te em ae eh oe SD ete te 2 re Act to esateim, ai probobir, oo at oars bape tea re luis cete, da ro une tec. The Cefontent alo new wae. ce ra the oneratien of rhe act ates and Lad acess beoedy te in dlters erica ulua cela. fas wae role snrovter of Vorhi predset ae vag aa @ come wary, ae) yelatiton toccrbecir) Uh goeot, Thoaes teen an Tesi 7 an a Lewes tle ed te oer in yess ab yao eoveral middicnur ar ei llers, "ia penalty steuld corns care areal ponig rt preeoclicsete to bat asl. beretzen +201 which the deteasanl contrac Lae peove cious ot tue act, Tt eneold @ valPics tilt s2 sa bo pe ve 6 aetelrer. cunnicy, end Le eho)? be Kent un mane waa one Acc omeruecs am a cer orcneal orvirontcn: where deter ccs of Cig. on TO copra sevens IE T TPE ThA tie 64 not 2 Aen ovol by pesogitice viiea we neo reetiacic, Te shoulda refleest PorLiosomy C8 7 The com.3ic_a2 stend rds lsvid v re tors so 0 04 as to bo erp vlrs's 1 Eoabloete the peniliy er Ye i r troy, wofsrred to in allog: vi cr these reasons Toit gunqgnent. With res itien referred to in allesation (bh) ©. OL Cie 3% reasons lor gJuidpnent a sibs teat : grpoesed, fs wie demlercu 2. 53yY VOL) La tart ab agr corent .vn¢ vas termingble vy clther wary on reaser' le nebtice. Vaet situation Leoovesn ne pervcot * ould heve 7 ch re Trade Pre tices fot om at cov um lew hina VELMA ea the agreerent tor a resson vhien did rev aces mh aprpenr and To vhlasz if nee meteriabl vu che c cslov, The ae rene —— ete . q A - - nw} aes eet 4 ue ateetia cr An et eel Lue coc lert WES Tle therelo yitaaelt surplo ec fre. ther. Thiet tne consecucne ,Itwuicltin', of susclie. vere - = 4 , ~ i the reacon thet 2.75 bed covert gcd ond were 7 oy Versiee Stsh] prodvc:s tor scale ec prices Eclow che praces engecuficd by the cere: as che prices ur whvel tuck products vase wl ae be cdvor vtge. Tah cused ee org orton: Sree . ~ — a bree cP cma ag, Pe or ele tele re acton on the Les of . sO, 17 . . i ~ . . at 1 1 rene) peau Lat J ' 7 y oota rs ve thecy Mine oust ree ee ef Seg ghaae.tad 4 opraiee preanpers este do mac rich Cayuse cel lor. Cor fuch yp vaod the vm re bh petusalo ef cv oplass it oote hae or ctumd 4 meow ive Sah Cupra soo eet odd ary rec Ll. The ceed tie! Iuproeprwe ry ot Th deboudontfs reese tas that dhe ees te mec cement a the 3. fesernt disc pure tak unger (fet and toureoy the pup ac re not vere Prvetrpac Oy rhe ulterule ston GP retucang Supp lies wes a etl tase. te atic Ly uiniew "ul foran wove Led not leba w tae eUrplar, im ctr C1scumautt ose apprees to ve nel only co ecnntraverc Nl provision: ef the 2.07 mu to bo an ecprwye.ted concraventie, 'ilerl ae ne surt tion ef «ry fa c breswch-c of 6./25 of the Act pre sous to tavne nov rurdc on, Tekiiy, @1]7 these wavters arta accovrae tegethor . he Ove an relation to nencity Jocorn i rt | whoreenect cof Che conto aventia.s wcar acai approp discucszon in 7'5,909, So Tar ef canciornc Tie cor urevillacn oF the conduct conctumuus Pestmcoda deceoplb: do ain . Lhe, vesom Co} ict fora theeo veasons Tor Goel ove ghoass vrypcd py dhe cetendccut thet court wll mov, a penalty or om Lea. t "nould rirterzer iat "3 s uw) camer, IF wae subritiec that, by reasoa of the wmrer.unate 2: tuvtaras * had arisen tev eger th dotei dat w1.6 sus @¢2 tyibuice sen co lers Teecumr reacen of the defenvaits relobious. cata iT. 7 aa Uae ue saca bliss e 1974, acciwiee, inorerk boa, Sard areas. 1 Le es eee . - oo 1 \ . -- Teg eG te ty fl tu Tle a shel ne evitnean ofc Tt or ot te ger Poe tin ely bt yan ro-3mntle for thro Feoates mace ger pe ord eget that og Jy a | ys . toot oan teats Fe a eyey od ' + be oc 10 wel eon cf The a thet an yerlnty fac define wien. I- poaene iaae re aan oe orraes role, onan ramet yereke srodLl, Meverto obs Syn a ote ely oul: to intlveice Pos 7. 00 the ters on at GasCwPnw pe. 5, BO Dr wt le wow antend a drow boing chtevgmet vo boye aeeired gehorieus coujyad cuice welt lars metic sere he an ote methoc chosen Cleric a lerewly roa at tare WeP vos Qoaueuwtly cuoar 2 Lealia or.der deLlor. cps acseermed, Tr «Jl th. circuses Vetv Thiel vac rome oppo. menuabty ama poeneot, of $5 05,90%, Te as Uren oO vasttren che ole, ai ub inguac elon weogicnb do cptaa. see brou, i Ly "alee Coumrecze that ef the publre ana uct of the wicay sual have ben affecre a be why cmt cc: brows alr vere Goer tod ty porate Te Taree Wet, ot cio Pe er u 7 ° mod + oye rey - E ta SO Te Vit AT "UV. = MARR B&B NUCH o 2 ae La fe te 6G © LSD my Cen Ppa, - tae c any lL ty, rmh's. Wolk. uiaigurc Por Vere as thas cat. fa Thre oer ater ie Lt bit tke tecmena by loo fo che Ge fen at for svimises co: Eta 22 OF Aa CPP yy certo ln and hac Lowi an Soar et sro. 2. coe Tay A emt Mh. geteateat bac ct ell Towed OL yaad st busiest. No cthor ie unt forward. As ty Pindin, i thay snare vor 20 realacy wy the sup: reason for the @lrleneinl's refusn? ra eimpdsy 130 sad tho al 7 Undel a Peuen ly uss, or ct beast hedjmo gun rul pelicy of Blsaceourt prt arscoun. ©oliso by @ alters dacre at ono cprest rr! peau. Pos sce refus.t otner thon en wie. ful cat hosed oop ihe Aefercant's + thee MEG yatl ade cron: Seal Ll poudeosts at andl yy solec thereof in ars 6 wore thi Voelby Suresh 2s road ovrseay the metropol: tea eres. On the evadtrse Lo dots net appes: Mee Tou @lleration 23) the gomeral vethcas or comlatisns 97 doing Dann: in the me os Slat oxrescastu, ecitos respect thy: is rele eg tm Las obo, cues ot 3.88. fas Gb G@ en met aprer? alice d aoa posataon ra ie belich thee BPS hac eeceun ceca an out d Tender 2's reruse ef suoplics cr hd wathdrs er there' wa ee Tor suptsxes, or thet dhe plesntrf? fad ACCuUL Teel de ue om Muss lL or an We cenia es lesen cf Ue lev apvele 2 tarin, peor. 1 mo - 4 " en re . te ublae ath ot ate oot . | han soos prescribed in the Act and znow. ctievlor the bene fic st comuetabon selling of product... It as urged the the uty nov vo rcius: cups to MS or anmadecO fay Oth co ortsen Tor se proserab d reassi 1s a contimvinc one weitere d to opy dlicy sa the part of eny perv in pursuing cbe ronedy ano recpeel of any partoondiar comtravinsc., It is uraré thot un r-isbion to a proeceding in the ripliac iiceres: the Court wall fie unto occount thet tacro hes been dlluy, low wall rege: 42t as of loss veiguvy tac tn otke nr cases. Oe. Vora: A a se 204, It would sccm thst tris 15 the cermect vie ome Varo. + ear dike tn: preseat were the cobcervane of a ntehuroy rooliubael a. os involved, the Courl may te re Tle vacyw PUG W Le Co letuet- o as the putlsc amusrsst, He duale . ere tuaeie oad boon co rate. ur! Chanec of caicurTisc#o an f reoult of whach wn anourelaca cic operate arccuaits bly, ulay would ve fauutl. Put wheie wfust os involved 1s the worl cbeervence of « corntemunay ate oiesy reguirement at as Velaxely tnet anesairty vould be involved, In the present ceso T think ~ should auve veparé To tin circumstance thar theo aungunction is sovehnt on the creund thar 2b is an the vublac dwterctry that the Court snould wie an order bindine the dcfendint wn relataqg to # porvicutr wu r vie respeet to vaon at hes slroady con athe la contrevent.cn 2% ue provigacns uf the Acc, to refrain Prom covmibvin, a or-ceh cf wes Coueitvar,, cul, areusv a vrs it by ER. feos. toot. tos ee | ro, - - eran pohey Net a | or roe ' angaretion vbr cll st atoar oe 7 Re Sel rtved. Lhe om? be Cho .eevarco., lean Tuc deserubol ag or wi "orranils dsck of aealinsx salu ip eftcec bby the act, and oc dirperecicn fo pursue ies com eit] cbgecures wet ruthless Cioreegei ee ef the provisions, of tn. Ack. St eprears tere thet at in 9 te and gepecr ee ue that the Jcofcernt. ov be costrecnc i heicetarin fren wie suprlies of ite. pre facts te TiS for uc react cnet lanave advervlrecd or are likivly to etiverties cucn bn tl "ae cay Tames os GUnermsise Tor gale «t pri]eur bite thon She orl elacte recovperacd reicil praece ian reapeov cf? such coscds. l de not ceretder thay at voul? te gvst or fam tecis oo Le che dealings bor cca vhe give iniweictive ictsef in iclay deiendant end paragverhs 7, G, 70. Clain liar been establisne:. (i) penolt.: respect oc (a), (2) reasons Tor (a) in resets ©. (b) an Tot CL alley vie ¢ (c) wn pe soutia (dn) mascara te Ch ed bet ped foo Pas Ur. 2 Bowral Spun leas Go oe df o1 ae nse . at QQ (avi) Ge @ bend co semetd be pone are by ats seperate, aygeaty ot ott or me. cm cd be ome ep tdace ef rte da The Vecv ty "ies vi oUr yous fore Ti eh oyrseres Lert Cie bie Oe ree Lites aed retead yric os im respect of sus. good; sar) ae eqn * ae oto ne eo. ae (iv) Ule des cme chou' be ereen 8 la sy doers AMe Agar a Af oe, oats] mt eR Vp oree jane tA COSL5 OCF OMA Arcam sh TO Vee Proce Gals. . ' ..