Handbook 1996 : Faculty of Law (Volume 3 page 225)
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Optional Law subject.
Prerequisite: Torts and the Process of Law; History and Philosophy of Law.
Contact: 2 hours per week
Timetable: Both semesters
Objectives:
Students completing the course should be able to understand the way in which the Trade Practices Act (Commonwealth) 1974 and the common law regulate restrictive trade practices, and in particular: understand the economic concepts of competition, markets, and market power; understand the structure of the Trade Practices Act and the interaction between the various restrictive trade practices provisions of the Act; construe each restrictive trade practice provision of the Act; identify in actual forms of business conduct practices that are suspect or prohibited under the Act; understand the roles of the Trade Practices Commission, the Trade Practices Tribunal, and the courts, under the Act; understand the policy objectives in legislating to control restrictive trade practices and mergers that substantially lessen competition; appreciate the problems inherent in regulating economic activities; recognise what contractual provisions may be rendered unenforceable by the common law doctrine of restraint of trade.
Content:
Introduction: What is a "restrictive trade practice"? Outline of the common law doctrine of restraint of trade. Inadequacy of the common law doctrine as an instrument of economic regulation. Overview of the Trade Practices Act (Commonwealth) 1974 ("TPA"): overview of nature and objectives of the TPA; the constitutional operation of the TPA; administration of the TPA. Introduction to TPA, Part IV: Objectives of restrictive trade practices legislation. Promoting competition: structure, conduct, performance. Markets, market power, and competition. Mergers and Acquisitions: Background. Rationale for merger law. The terms of TPA, section 50. Overseas acquisitions. The operation of section 50. Misuse of Market Power: Rationale and nature of prohibition. A substantial degree of power in a market. "Taking advantage" of market power. Proscribed purposes. Anti-competitive Arrangements: Rationale for regulating horizontal restraints. Contracts, arrangements and understandings. Per se prohibitions: price fixing; exclusionary provisions. Anti-competitive arrangements. Application of the common law doctrine of restraint of trade to horizontal dealings. Exclusive Dealing: Nature of non-price vertical restraints and rationale for their prohibition. Per se exclusive dealing: third-line forcing. Exclusive dealing which substantially lessens competition. Application of the common law doctrine of restraint of trade to exclusive dealing. Resale Price Maintenance: Rationale for prohibiting resale price maintenance. Arguments in favour of resale price maintenance. The definition of resale price maintenance. Recommended prices. The defence of loss-leader selling. Application of the common law doctrine of restraint of trade to resale price maintenance. Authorisation and Notification. Role of Trade Practices Commission. Role of Trade Practices Tribunal. Authorisation of mergers. Authorisation of other conduct. Penalties and Remedies. Pecuniary penalties. Injunctions. Divestiture. Damages. Other orders.
Assessment:
Either Research Assignment 3,000 words (30 per cent) and Final Exam 2 hours (70 per cent) or Final Exam 3 hours (100 per cent).
Prescribed texts:
Law subject : Next:730-382 | Prev:730-321 | Search | Help
Handbook 1996 : Faculty of Law (Volume 3 page 225)
Status: Official 1996 Date created: Oct 9 1995 Last modified: Oct 9 1995 Authorised by: Academic Registrar Email enquiries: Course_Information@registrar.unimelb.edu.au
Maintained by: Faculty of Law.
Copyright © University of Melbourne 1995,1996.