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Redfern v Dunlop Rubber Australia Ltd | |
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Court | High Court of Australia |
Decided | 25 February 1964 |
Citation(s) | [1964] HCA 9, (1964) 110 CLR 194 |
Case opinions | |
(7:0) Section 4 of the Australian Industries Preservation Act applied to a contract in the restraint of trade which dealt with intrastate and interstate trade. (per Dixon CJ, McTiernan, Kitto, Taylor, Menzies, Windeyer & Owen JJ) | |
Court membership | |
Judge(s) sitting | Dixon CJ, McTiernan, Kitto, Taylor, Menzies, Windeyer and Owen JJ |
Redfern v Dunlop Rubber Australia Ltd, [1] was a case decided in the High Court of Australia regarding the scope of the trade and commerce power in section 51(i) of the Constitution.
The High Court of Australia is the supreme court in the Australian court hierarchy and the final court of appeal in Australia. It has both original and appellate jurisdiction, the power of judicial review over laws passed by the Parliament of Australia and the parliaments of the states, and the ability to interpret the Constitution of Australia and thereby shape the development of federalism in Australia.
The plaintiffs, Highway Tyre Service, Pakenham Tyre Service, and H.J. King Tyre Service ("Redfern") were three companies engaged in carrying on the business of buying, selling and dealing in motor and cycle tyres and tubes. The defendants consisted of five companies: Dunlop Rubber Australia Limited, B.F. Goodrich Australia Pty. Limited, The Olympic Tyre & Rubber Co. Proprietary Limited, Hardie Rubber Company Pty. Limited, and The Goodyear Tyre & Rubber Co. (Australia) Limited. These companies were all incorporated in the state of Victoria.
Victoria is a state in south-eastern Australia. Victoria is Australia's smallest mainland state and its second-most populous state overall, making it the most densely populated state overall. Most of its population lives concentrated in the area surrounding Port Phillip Bay, which includes the metropolitan area of its state capital and largest city, Melbourne, Australia's second-largest city. Victoria is bordered by Bass Strait and Tasmania to the south, New South Wales to the north, the Tasman Sea to the east, and South Australia to the west.
The companies entered into a series of contracts between them, which contained terms to the effect of fixing the prices of goods for traders, and the terms on which the goods could be retailed. It was alleged that all of this was done in restraint of, or with intent to restrain, trade and commerce among the States. The plaintiffs claimed that damage resulted from the contracts, arising in their inability to obtain tyres and other goods at wholesale prices and the ability to obtain them only at the prices established under the contracts.
The case involved the Australian Industries Preservation Act, which made it an offence to enter into a contract covering a restraint of trade. The action was commenced in the original jurisdiction of the High Court. The defendants objected to the sufficiency of the claims and the case was referred to the Full Court.
The issue present was whether the Commonwealth Act could regulate contracts concerning trade and commerce of companies within a single state. The High Court held that the Commonwealth could render the contract void, even if it contained terms that cover purely intrastate trade. This involved a practical consideration where a party could void the involvement of the Commonwealth in regulating trade and commerce by simply inserting an intrastate clause in a contract.
Menzies J stressed the importance of the principle that the Commonwealth's power over trade and commerce extends only to intrastate trade and commerce that is inseparably connected with interstate trade and commerce. Menzies J further noted that this principle was quite consistent with allowing the Commonwealth the power to prohibit or regulate acts that relate to intrastate trade and commerce if they relate to interstate trade and commerce or overseas trade and commerce as well
The High Court hence unanimously adopted Owen J's dissent in Swift Australian Co (Pty) Ltd v Boyd Parkinson, [2] by holding that the Commonwealth was within power to produce legislation covering mixed activities.
Swift Australian Co (Pty) Ltd v Boyd Parkinson, was a case decided in the High Court of Australia regarding the scope of the trade and commerce power in section 51(i) of the Constitution.
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Sir Garfield Edward John Barwick, was an Australian judge who was the seventh and longest serving Chief Justice of Australia, in office from 1964 to 1981. He had earlier been a Liberal Party politician, serving as a minister in the Menzies Government from 1958 to 1964.
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Australian contract law concerns the legal enforcement of promises that were made as part of a bargain freely entered into, forming a legal relationship called a contract. The common law in Australia is based on the inherited English contract law, with specific statutory modifications of principles in some areas and the development of the law through the decisions of Australian courts, which have diverged somewhat from the English courts especially since the 1980s. This article is an overview of the key concepts with particular reference to Australian statutes and decisions. See contract law for very general doctrines relating to contract law.
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