Trade Practices Act change may impact supply chain contracts

摘要

The House of Representatives is considering a Bill to amend section 51AC of the Trade Practices Act, 1974 (Cth), which may impact supply contracts in the automotive industry. Section 51 AC provides protection for businesses from unconscionable conduct in connection with the supply, or possible supply, of goods or services. The section prohibits a corporation (51AC(1)) or a person (51AC(2)) from engaging in conduct that is, in all the circumstances, unconscionable. The section then provides a list of conduct that can be considered by the Courts when considering whether there has been unconscionable conduct. This list is not exhaustive, and Courts can consider any conduct that in the circumstances is unconscionable.