ONE PAGE Summary - Trade AND Commerce PDF

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are* all,* but* not* exclusively,* parts* of* that* class* of* relations* betwee mankind*which*the*world*calls*‘trade*and*commerce’.1""

WEEK$2$LECTURE$–$PART$B:$Section$51(i)$and$Section$92$$ In"particular,"you"should"be"familiar"with"the"facts"and"findings"in"these"cases:" O’Sullivan*v*Noarlunga*Meat*Ltd*(1954)*92*CLR*565;*Airlines*of*NSW*v*NSW*(No*2)* (1965)*113*CLR*54;*Cole*v*Whitfield*(1988)*165*CLR*360;*and*Castlemaine*Tooheys* Ltd*v*South*Australia*(1990)*169*CLR*436.** 2.$What$is$this$lecture$about?$ In"the"first"half"of"the"Week"2"lecture,"we"considered"constitutional"method."That" required" us" to" consider" whether" or" not" a" commonwealth" law" is" supported" by" a" ‘head" of" power.’" An" example" of" a"head" of"power" in"section" 51"is"the"‘trade"and" commerce’" (section" 51(i))." An" example" of" a" restriction" on" power" in" section" 92," which" among" other" things," requires" that" ‘trade,* commerce,* and* intercourse* between*the*states*...*be*absolutely*free’.""This"lecture"considers"the"scope"of"the" trade" and" commerce" power," and" the" approach" taken" by" the" High" Court" in" applying"section"92."" 3.$Section$51(i):$Parliament$shall$have$power$to$make$laws$…$with$respect$to$…$ “trade&and&commerce&with&other&countries&and&among&the&states”$$$ Among"other" things," we"need"to"understand"the" scope"of" this" head"of"power."In" order"to"do"so,"we"consider"two"main"issues:"" a) What"is"the"meaning"of"“trade"and"commerce”?" " In" W& A& McArthur& Ltd& v& Queensland& (1920)& 28& CLR& 530," the" High" Court" defined" trade"and"commerce"as"follows:** "Trade* and* commerce* …* has* never* been* confined* the* mere* act* of* transportation* of* merchandise* over* the* frontier* …* All* the* commercial* arrangements* of* which* transport* is* the* direct* and* necessary* result* form* part*of*‘trade*and*commerce’.*The*mutual*communings,*the*negotiations,* verbal*and*by*correspondence,*the*bargain,*the*transport*and*the*delivery*

Notably,"in"Grannall&v&Marrickville&Margarine&Pty&Ltd&(1955)&93&CLR&55,"the"Hig Court"indicated"that"generally,"the"terms"‘trade"and"commerce’" do" not"extend"to mere" production" or" manufacture." However," if" there" is" a" sufficient" connection between"the"production"or"manufacturing"process,"and"activities"which"are"‘trad and" commerce’," it" may" come" within" the" incidental" scope" of" the" power." Fo example," see" the" discussion" in" O’Sullivan& v& Noarlunga& Meat& Ltd& (1954)& 92& CL 565.&In"that"case,"the"High"Court"held,&& It"may"very"reasonably"be"thought"necessary"to"go"further"back,"and"even" to enter" the"factory" or" the"field" or" the" mine."How" far"back" the" Commonwealth may"constitutionally"go"is"a"question"which"need"not"now"be"considered,"an which"must"in"any"case"depend"on"the"particular"circumstances"attending"th production"or"manufacture"of"particular"commodities.2" b) To" what" extent" does" the" power" enable" the" Cth" to" regulate" intrastat trade"and"commerce"or"intrastate"activities"connected"thereto?" " Prima" facie," the" Commonwealth" can" only" regulate" overseas" trade," and" trad between"states"(interstate" trade),"and" not"trade" within*a*state" (intrastate"trade) However,"it"can"use"51(i)"to"regulate"intrastate"trade"only"‘to"the"extent"necessar to" make" effectual" [the]" exercise" of" the" power" over" interstate" commerce’:" R& Burgess;&Ex&parte&Henry&(1936)&55&CLR&608"at"671."Regulation"of"intrastate"trad might"be"necessary"where"there"is"either:"" • •

a" direct," proximate," substantive" connection" (see$ Redfern& v& Dunlop Rubber&Australia&Ltd&(1964)&110&CLR&195);*or*a*" a"causative"connection"(see"Airlines&of&NSW&v&NSW&(No&2)&(1965)&113&CLR 54)"

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"W*A*McArthur*Ltd*v*Queensland*(1920)*28*CLR*530,*at"546-7." "O’Sullivan*v*Noarlunga*Meat*Ltd*(1954)*92*CLR*565"

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4.$Section$92:$freedom$of$interstate$trade$and$commerce$$ The" High" Court" in" Cole& v& Whitfield& (1988)& 165& CLR& 360& enunciated" the"principle" that" the" freedom" in" s92" is" a" freedom" from" ‘discriminatory" burdens" of" a" protectionist" kind’." To" put" it" simply," this" means" the" law" must" not" only" discriminate," but" locals" must" be" given"some" kind" of" competitive" advantage"over" an"interstate"trader."On"occasion,"the"High"Court"has"recognized"that"sometimes"a" burden" on" interstate" trade" is" justified" by" a" legitimate" public" interest" (such" as" social" and" economic" problems," and" health," safety" and" wellbeing" of" the" community)."However,"the"response"to"that"interest"must"be"‘proportionate’."For" example,"the"High"Court"in"Castlemaine&Tooheys&Ltd&v&South&Australia&(1990)&169& CLR& 436"held," ‘[t]he"fact"that"a"law"imposes"a"burden"upon"interstate"trade"and" commerce" that" is" not" incidental" or" that"is" disproportionate" to" the"attainment" of" the"legitimate"object"of"the"law"may"show"that"the"true"purpose"of"the"law"is"not" to"attain"that"object"but"to"impose"the"impermissible"burden.’3" 6.$Fundamental$concepts$and$key$terms$" You"should"be"familiar"with"the"following"terms:"" • • • "

‘trade"and"commerce’"" ‘sufficient"connection’"" ‘Discriminatory"burden"of"a"protectionist"kind’.""

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"Castlemaine*Tooheys*Ltd*v*South*Australia*(1990)*169*CLR*436,*at"472.&"

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