Austin Distributors Limited v A H Paterson Car Sales Pty Ltd [1941] HCA 16

Cons

Jadecroft Pty Lidy Westem Undenwnters

Insurance Lt (iss 1QdR

AUSTIN DISTRIBUTORS LIMITED 5 :

A. H. PATERSON CAR SALES PROPRIETARY )

HIGH COURT (1941.

{HIGH COURT OF AUSTRALIA.]

APPELLANT ; PLAINTIFF,

AND

LIMITED : : : , ms ResPoNDENT.

DrFENDANT,

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

H.C. or A. Money-lenders—Definition—Exception—Business not having for its primary object

1941. Se

MELBOURNE, May 21; Jume 4,

Rich A.C.J., Starke, McTiernan and Williams JJ.

the lending of money—Business of motor-car traders—Dealing in new and used cars—On cash and hire-purchase terms—Financing used-car dealers—Security by hire-purchase agreements—Advances made to dealers—Whether financing of dealers incidental to business of motor-car traders—Money Lenders Act 1938 (Vict.) (No. 4625), secs. 3 (1),* 22.

A company which carried on the business of importing or buying, and selling for cash or on terms, new and used motor vehicles, also undertook the

financing (at rates of interest exceeding eight per cent per annum) of a small Dealers were financed in respect both

number of dealers in motor vehicles. of the acquisition by them of used vehicles from third parties and of the

acquisition by them from the company of used cars which had. been traded-in on purchases of new vehicles from the company by persons introduced by such dealers. Security for an advance made to a dealer in respect of his acquisition of a motor vehicle was taken by letting the vehicle to the dealer under a hire- purchase agreement for a short term ; if the dealer sold the vehicle on terms,

*The Money Lenders Act 1938 (Vict.) provides as follows :—See. 3 (1): ""* Money lender' means every person whose business (whether or not he car- ries on any other business) is that of money lending or who advertises or announces himself or holds himself out in any way as carrying on that business and who lends money at a rate of interest exceeding eight per centum per annum