S.I. No. 86/1956 - Restrictive Trade Practices (Motor Cars) Order, 1956.
S.I. No. 86 of 1956. | ||
RESTRICTIVE TRADE PRACTICES (MOTOR CARS) ORDER, 1956. | ||
ARRANGEMENT OF ARTICLES | ||
Article. | ||
3. Prohibition of resale price maintenance by individual supplier. | ||
5. Prohibition on collective fixing of manufacturers' and assemblers' selling prices. | ||
6. Prohibition on fixing of charges for specified technical services. | ||
7. Prohibition of lists of allowances for used motor vehicles. | ||
8. Recommended price or charge not binding as minimum price or charge. | ||
9. Prohibition on withholding of goods because of prices charged. | ||
10. Prohibition on withholding of goods from persons not approved by a trade association. | ||
S.I. No. 86 of 1956. | ||
RESTRICTIVE TRADE PRACTICES (MOTOR CARS) ORDER, 1956. | ||
I, WILLIAM NORTON, Minister for Industry and Commerce, having considered a report of the Fair Trade Commission under section 7 of the Restrictive Trade Practices Act, 1953 (No. 14 of 1953), into the conditions obtaining in regard to the supply and distribution of motor vehicles, tyres, other spare parts and accessories, hereby, in exercise of the powers conferred on me by section 9 of the said Act, order as follows : | ||
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1 Short title. | 1. This Order may be cited as the Restrictive Trade Practices (Motor Cars) Order, 1956. | |
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2 Definitions. | 2. In this Order— | |
" the Commission " means the Fair Trade Commission ; | ||
" discount " and " markup " include, respectively, a discount or markup however expressed ; | ||
" motor vehicles " means mechanically propelled vehicles constructed for use on roads for the carriage of persons or goods but does not include vehicles constructed for use as omnibuses or charabancs (as defined in section 3 of the Road Traffic Act, 1933 (No. 11 of 1933) ), tractors, motor cycles or mechanically propelled bicycles ; | ||
" goods to which this Order applies " means motor vehicles and replacement parts and accessories therefor (including new, remoulded and retreaded tyres) ; | ||
" supplier " means any person engaged in the business of manufacturing or assembling or supplying for resale or selling for resale goods to which this Order applies ; | ||
" retailer " means any person who resells goods to which this Order applies to the public. | ||
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3 Prohibition of resale price maintenance by individual supplier. | 3.—(1) A supplier shall not require or induce or attempt to require or induce any person (whether directly or indirectly, by agreement, threat, promise or any other means) to resell or offer for resale goods to which this Order applies— | |
(a) at a fixed price specified by the supplier or established by agreement or otherwise, or | ||
(b) at a price not less than a minimum price specified by the supplier or established by agreement or otherwise, or | ||
(c) at a fixed markup or a fixed discount specified by the supplier or established by agreement or otherwise, or | ||
(d) at a markup not less than a minimum markup specified by the supplier or established by agreement or otherwise, or | ||
(e) at a discount not greater than a maximum discount specified by the supplier or established by agreement or otherwise. | ||
(2) Nothing in paragraph (1) of this Article shall prevent a supplier from advertising or otherwise specifying resale prices or retail prices for goods to which this Order applies, provided such prices are maximum prices. | ||
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4 Prohibition of collective resale price maintenance. | 4. There shall not be any joint or collusive action (whether directly or indirectly or by way of agreement or understanding or otherwise) between two or more suppliers or between a supplier and a retailer or between two or more retailers, which has or is likely to have the effect of ensuring that goods to which this Order applies will be resold or offered for resale— | |
(a) at a fixed price or at a price not less than a specified minimum price, or | ||
(b) at a fixed markup or at not less than a specified minimum markup, or | ||
(c) at a fixed discount or at a discount not greater than a specified maximum discount, or | ||
(d) on any other basis which involves eliminating or limiting competition in price between suppliers or between retailers. | ||
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5 Prohibition of collective fixing of manufacturers' and assemblers' selling prices. | 5. There shall not be any agreement, arrangement or understanding (whether induced by threat, promise or otherwise) between two or more persons engaged in the business of manufacturing goods to which this Order applies or between two or more persons engaged in the business of assembling such goods as to the prices at which they will supply such goods to other persons. | |
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6 Prohibition on fixing of charges for specified technical services. | 6.—(1) No supplier, combination of suppliers, combination of suppliers and retailers or combination of retailers shall require or induce or attempt to require or induce (whether directly or indirectly, by agreement, threat, promise or any other means) any persons to provide any specified technical service in relation to goods to which this Order applies at a price or charge not less than a fixed or a minimum price or charge. | |
(2) Paragraph (1) of this Article shall not prevent a supplier from advertising or otherwise specifying the price or charge at which any specified technical service will be provided if such price or charge is a maximum price or charge. | ||
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7 Prohibition of lists of allowances for used motor vehicles | 7.—(1) No supplier, combination of suppliers, combination of suppliers and retailers or combination of retailers shall publish or cause to be published any list of the monetary allowances to be made for used motor vehicles proffered in part payment for new motor vehicles or do any other act which has or is likely to have the effect of fixing such allowances or the prices to be paid for used motor vehicles. | |
(2) Paragraph (1) of this Article shall not apply to an individual supplier who is also a retailer, acting alone and solely in the course of his business as a retailer. | ||
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8 Recommended price or charge not binding as minimum price or charge. | 8. Where a supplier indicates or recommends a resale price or a retail price for goods to which this Order applies or a price or charge for the provision of a specified technical service in relation to such goods, no such price or charge shall be binding as a minimum price or charge. | |
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9 Prohibition on withholding of goods because of prices charged. | 9.—(1) A supplier shall not withhold goods to which this Order applies from any person by reason of— | |
(a) the prices charged or proposed to be charged by him on the resale of the goods, or | ||
(b) his refusing to resell or offer the goods for resale on any basis mentioned in paragraph (1) of Article 3 or in Article 4 of this Order, or | ||
(c) his reselling or offering to resell the goods— | ||
(i) at a price less than a fixed or minimum price specified by a supplier or established by agreement or otherwise, or | ||
(ii) at a markup less than a fixed or minimum markup specified by a supplier or established by agreement or otherwise, or | ||
(iii) at a discount greater than a fixed or maximum discount specified by a supplier or established by agreement or otherwise. | ||
(2) Paragraph (1) of this Article shall not prevent a supplier from withholding goods to which this Order applies from a person who resells or offers for resale such goods at a price exceeding a maximum resale price specified by the supplier. | ||
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10 Prohibition on withholding of goods from persons not approved by a trade association. | 10. A supplier shall not withhold goods to which this Order applies from any person or discriminate against any person as to the terms on which such goods are supplied, because that person is or is not a member of a trade association or is not approved by a trade association or because that person's name appears or does not appear on any list prepared, maintained, published or issued by a trade association or because representations that supplies should be withheld from such person or be made available only on specified terms have been made by or on behalf of any trade association. | |
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11 Further provisions as to withholding of goods. | 11.—(1) (a) Paragraph (1) of Article 9 of this Order shall not prevent a supplier from withholding goods to which this Order applies from a person who resells or offers for resale such goods at a price equal to or less than the purchase price and fails to give to the supplier an acceptable undertaking to discontinue doing so. | |
(b) For the purposes of this paragraph the purchase price shall be deemed to be the price that would be payable by the person concerned if he were to replace the goods at the time of the resale or offer for resale, as the case may be, provided that such price is less than the price paid by that person to the supplier for the goods, but not otherwise. | ||
(2) Paragraph (1) of Article 9 of this Order shall not prevent a supplier from withholding supplies of new motor vehicles from a person who advertises or causes to be advertised for sale a new motor vehicle at a price less than the list price indicated by such supplier and fails to give to the supplier an acceptable undertaking to discontinue doing so, subject, however, to such supplier immediately notifying the Commission in writing of the action taken and the reasons therefor. | ||
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12 Investigation by Commission into withholding of goods. | 12.—(1) Where the Commission receive a notification from a supplier under paragraph (2) of Article 11 of this Order, the Commission may, on their own initiative, and shall, in the event of a complaint being received by them from the person from whom supplies have been withheld, investigate the matter. | |
(2) If, after an investigation made pursuant to paragraph (1) of this Article, the Commission inform a supplier that they are of opinion that the circumstances are not such as to justify the continued withholding of supplies from any person, then, as from the date on which such notification is made to the supplier, paragraph (2) of Article 11 of this Order shall not permit the continued withholding of supplies by the supplier from the person concerned. | ||
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13 Prohibition of unfair differentiation by supplier. | 13.—(1) A supplier shall not, as respects the terms and conditions on which goods (of like grade, quality or quantity) to which this Order applies may be obtained from him, differentiate, by means of any rebate, refund, discount, credit or any other similar concession or by the provision of any service, facility or other consideration of value, between one purchaser for resale and another purchaser for resale (being purchasers of the same class). | |
(2) Paragraph (1) of this Article shall not apply to differentiation, based on bona fide considerations of creditworthiness, by a supplier as to the time within which payment is to be made to him for goods supplied. | ||
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14 Distribution arrangements and imposition of terms and conditions for acceptance of orders by supplier. | 14.—(1) Subject to the foregoing provisions of this Order, a supplier may, in relation to goods to which this Order applies supplied by him— | |
(a) make such arrangements for the distribution of such goods (including the appointment of various classes of suppliers or retailers), and | ||
(b) apply or cause to be applied to the acceptance of orders for such goods such terms and conditions, including conditions as to the size or frequency of such orders or as to the functions of a supplier or a retailer or the services to be rendered to the public, | ||
as are reasonable in the interests of efficiency and economy in production and distribution or are necessary in the legitimate interests of the supplier's business, provided such terms and conditions are applied in an equitable manner. | ||
(2) A supplier shall, as soon as may be, file with the Commission a statement of any such arrangements made by him and any such terms or conditions applied or caused to be applied by him and any changes from time to time made by him in such arrangements, terms or conditions. | ||
(3) A supplier shall, upon the request of any person engaged in or proposing to engage in trade in goods to which this Order applies, make available to such person a statement of the relevant terms and conditions in operation. | ||
(4) Nothing in this Article shall affect the power of the Commission to make fair trading rules relating to such arrangements, terms and conditions. | ||
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15 Prohibition on coercing supplier to withhold supplies. | 15. No trade association shall coerce or attempt to coerce a supplier to withhold supplies of goods to which this Order applies from any person or discriminate against any person as to the terms on which such goods may be supplied to him. | |
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16 Prohibition on restricting entry to trade. | 16. Subject to Article 14 of this Order, no supplier or retailer shall be a party to any agreement, arrangement or understanding (whether induced by threat, promise or otherwise) which has or is likely to have the effect of limiting or restricting entry to trade in goods to which this Order applies. | |
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17 Prohibition of lists of approved traders. | 17.—(1) No trade association shall prepare, maintain, publish or issue or cause to be prepared, maintained, published or issued any lists of approved or non-approved persons or of persons classified in any way, which have or are likely to have the effect of limiting or restricting entry to trade in goods to which this Order applies or which are intended to be used as a basis for regulating or influencing the supply and distribution of such goods or the terms and conditions on which such goods will be supplied. | |
(2) Subject to Article 14 of this Order, no supplier or other person shall publish or issue or cause to be published or issued any such list as is referred to in paragraph (1) of this Article which hasor is likely to have the effect of limiting or restricting entry to trade in goods to which this Order applies or which is intended to be used as a basis for regulating or influencing the supply and distribution of such goods or the terms and conditions on which such goods will be supplied. | ||
(3) No person or combination of persons shall prepare, maintain, publish or issue any lists, or do any other act, designed to secure a boycott of any supplier because such supplier has refused to do any act which a supplier is prohibited from doing by this Order. | ||
GIVEN under my Official Seal, this twelfth day of April, 1956. | ||
(Signed) WILLIAM NORTON, | ||
Minister for Industry and Commerce. |