Lesley Reardon v Aquajet Holdings (S.A.) Pty Ltd [1982] FCA 270

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CATCHWORDS

TRADE PRACTICES - Prosecution - false or misleading statements

as to profitability - advertisement referring to remuneration -

promise or prediction

as to future earnings - managing director

charged with being knowingly concerned - lack of belief or

reckless indifference concerning predictions - jurisdiction to

hear charges against individual where lack of personal service.

TRADE PRACTICES ACT 1974

CRIMES ACT 1914

JUSTICES ACT (S.A.) 1921

s.5

LESLEY PATRICIA REARDON

AND

LESLEY PATRICIA REARDON

S.A. G54 G55 G56 G57 G58 G59

G60

No.

G5 G6 G7

FISHER J.

Adelaide

of 1981 " 1."

of 1982

13 December 1982

s.59(2)

$.27, 8.62

Vv AQUAJET HOLDINGS (S.A) PTY. LIMITED

Vv JAMES PATRICK NOLAN

G

IN THE FEDERAL COURT OF AUSTRALIA ) S.A. No. G54 of 1981 \ ) G55 wu ua SOUTH AUSTRALIA DISTRICT REGISTRY ) G56 " " ) G57 au u GENERAL DIVISION ) G58 " " G59 " u G60 u "

G5 of 1982 G6 " u G7 " "

BETWEEN:

LESLEY PATRICIA REARDON Prosecutrix

- and -

AQUAJET HOLDINGS {S.A.) PTY. LIMITED Defendant

AND ,

LESLEY PATRICIA REARDON Prosecutrix

- and -

JAMES PATRICK NOLAN Defendant

FISHER J.

13 December 1982 REASONS FOR JUDGMENT

These are 10 prosecutions brought by the prosecutrix

alleging contraventions of s.59(2) of the Trade Practices Act

1974 ("the Act"). Aquajet Holdings (S.A.) Pty. Limited ("Aquajet") is charged with a total of 7 contraventions of that section of the Act and James Patrick Nolan ("Mr. Nolan")

is charges under s.5 of the Crimes Act 1914 with being

knowingly concerned in 3 of such contraventions. All

proceedings against the defendants were at their request heard

together.

Section 59(2) of the Act 1s in the following terms: -

"Where a Corporation, in trade or commerce, invites, whether by advertisement or otherwise, persons to engage or participate, or to offer or apply to engage or participate, 1n a business activity requiring the investment of moneys by the persons concerned and the performance by them of work associated with the investment, the corporation shall not make, with respect to the profitability or risk or any other material aspect