TIME: Three Hours. Candidates are required to attempt BOTH questions.

The questions may be answered in one examination booklet.

Candidates must indicate which questions they have answered on the cover of the first examination booklet.

Each page of each answer must be numbered with the appropriate question number and part number.

Candidates must write their answers clearly. Lack of legibility may lead to a delay in the candidate's result being given.

A copy of the Law Extension Committee’s Case List is attached to the question paper.

Yuppie Ltd manufactures dresses of distinctive styles. It has 27% of the dress market for teenagers and 37% for women between twenty and forty years of age. It stipulates that the boutiques wishing to stock their dresses must agree to:

1. buy at least 350 dresses per month.

Only a handful of these boutiques ever sell more than 450 dresses in total per month; (b) not to carry out home deliveries of these dresses;

(c) not to advertise the dresses outside a six kilometre radius of its location; and

(d) Yuppie Ltd reserving the sole right to sell dresses by mail order.

For its part, Yuppie Ltd agrees with the boutiques; (a) not to supply its dresses to any shop other than boutique which accepts the abovementioned conditions; and (b) that no boutique will be supplied which is within 9 kilometres of any other boutique being supplied. Agreements incorporating the above terms and conditions are to be entered into for a period of ten years.

Dinkie Ltd and Donkey Ltd, each of which has 24% of teenage dress sales and 20% of sales to women between twenty and forty years of age, object to these agreements.

The Trendy Teak Association of Western Australia, ‘the Association,’ has sixty members who account for about 80% of the trade in solid teak office furniture designed by interior designers in Australia. Of new and refurbished office premises furnished in the last seven years, 60% were fitted out with teak furniture. Prices for teak office furniture, in that time, have risen only in line with inflation. Prices of other office furniture have fallen during the same period by 15%.

As a condition of membership, members must participate in an interfirm comparison on prices which involves the exchange, on a strictly anonymous basis, of information about the prices charged for furniture, of production and of other financial information. Based on the interfirm comparison the Association circulates to members a recommended price schedule to members.

A major developer of commercial premises is concerned at the price trends in teak office furniture and wants advice on whether the Association is in breach of the Trade Practices Act.

Ground Zero Ltd (‘Zero’) manufactures nitrogenous fertiliser in Brisbane. The company sells this fertiliser, in large quantities, to eight wholesalers who distribute the fertiliser to Queensland farmers. Transport costs are such that most of the Queensland market is insulated from competition from manufacturers in other states. The result is that, until now, Zero has enjoyed a dominant market position in that state. Another company trading in Queensland, Rival Ltd, ("Rival") proposes to take advantage of an import bounty to import the fertiliser from overseas. The latter company estimates that it will be able to sell to Queensland farmers at a price of $147 per tonne, the conditions as to delivery being identical to those offered by Zero and its distributors. The last season’s sales by Zero were at $149.00 per tonne, the lowest price charged by that company for five years. Zero had not announced its new season price when Rival circulated to its proposed wholesalers and its advertisers literature identifying its proposed price of $147 per tonne. Within two days of this information being made available to the trade by Rival, Zero announced its new season price of $139 per tonne.

Advise Rival Ltd as to its rights under s46 of the Trade Practices Act, indicating, if appropriate, what further information that you would require.

1. The principles which apply to (a) the grant of injunctions and (b) the award of damages under the Trade Practices Act.

2. The concept of resale price maintenance, in the light of s48 and Part VIII of the Trade Practices Act.

(iv) Relief available under the Trade Practices Act against unconscionable conduct.

Harry Vidurchi Ltd (‘Harry’) makes frozen pre-packaged dinners and has 27% of the Australian pre-packaged dinner market. It also makes gelato and has 20% of the total gelato market which in turn equates to 2.5% of the total ice cream market. It markets both products exclusively through franchisees who sell the products to the final consumer. Some franchisees own the premises from which the products are sold; others lease them from Harry. All franchisees are prohibited from handling other manufacturers’ products under the franchise agreements.

Caesar Ltd (‘Caesar’), in one of its divisions, makes gelato and other ice creams which it sells to wholesalers, general food retailers, milk bars and restaurants. The company had about 27% of the total gelato market but recently its share dropped to 13%. It also had about 12% of the total ice cream market and this had dropped to 6%.

A recent tightening of bank lending is making it difficult for Caesar to borrow sufficient funds needed to replace or add to the old gelato and ice-cream plants. At the same time it continues to operate its gelato/ice cream division profitably. In August 1998 Caesar entered the pre-packaged dinner market through a new division with new and efficient plant. By August 1999 it captured 5% of the pre-packaged dinner market. It anticipates having 12% of the market by January 2000.

There are about 60 efficient local producers of pre-packaged dinner and 25 efficient producers of gelato and about 6 efficient producers of ice cream. Imports made up 5% of the pre-packaged dinner market, 27% of the gelato market and only 9% of the ice cream market.

The shareholders of Caesar resolve to sell all of their shares to Harry. If the acquisition takes place Harry proposes to add the Caesar gelato and ice cream lines to its franchise outlet range and to continue selling these products to wholesalers, general food retailers, milk bars and restaurants.

‘The object of Part V of the Act is to protect the consumer by eliminating unfair trade practices.’ Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) ATPR 40-307 at 43,786 (per Mason, J.).