Commonwealth Numbered Acts

TRADE PRACTICES ACT 1974 No. 51, 1974 - SECT 88

88. (1) Subject to this Part, the Commission may, upon application by or on
behalf of a corporation, grant an authorization to the corporation to make a
contract or arrangement, or enter into an understanding, that would be or
might be in restraint of trade or commerce or to continue to be a party to a
contract, arrangement or understanding that is or may be in restraint of trade
or commerce, and, while such an authorization remains in force-

   (a)  in the case of an authorization to make a contract or arrangement or
        to enter into an understanding-sub-section 45 (2) does not prevent the
        corporation from making the contract or arrangement or entering into
        the understanding in accordance with the authorization and giving
        effect to the contract or arrangement so made or the understanding so
        entered into;

   (b)  in the case of an authorization to continue to be a party to a
        contract-

        (i)    the contract is not unenforceable by reason of sub- section 45
               (1); and

        (ii)   sub-section 45 (2) does not prevent the corporation from giving
               effect to the contract; or

   (c)  in the case of an authorization to continue to be a party to an
        arrangement or understanding-sub-section 45 (2) does not prevent the
        corporation from giving effect to the arrangement or understanding in
        accordance with the authorization.

(2) Sub-section (1) does not apply in relation to a contract, arrangement or
understanding fixing or controlling, or providing for the fixing or
controlling of, the price for, or any discount, allowance or rebate in
relation to, any goods supplied by the parties to the contract, arrangement or
understanding, or by any of them, in competition with each other, to persons
not being parties to the contract, arrangement or understanding, other than a
contract, arrangement or understanding between persons in connexion with the
supply of goods by those persons on a joint basis or the supply by those
persons of goods that have been produced, manufactured, mined or acquired by
them on a joint basis.

(3) An authorization under sub-section (1) to make a contract or arrangement
or enter into an understanding, or to continue to be a party to a contract,
arrangement or understanding, may be expressed so as to apply to a corporation
that becomes a party to the contract, arrangement or understanding after the
authorization is granted.

(4) The Commission does not have power to grant an authorization under
sub-section (1) to a corporation to make a contract or arrangement, or to
enter into an understanding, if the contract or arrangement has already been
made or the understanding has already been entered into.

(5) The Commission does not have power to grant an authorization under
sub-section (1) to a corporation to continue to be a party to a contract,
arrangement or understanding unless-

   (a)  in the case of a contract-the requirements of paragraphs 45 (8) (a)
        and (b) have been complied with; or

   (b)  the contract or arrangement was made, or the understanding was entered
        into, before the expiration of the period referred to in sub-section 2
        (4) and-

        (i)    the authorization is granted before the expiration of that
               period; or

        (ii)   the authorization is granted upon the expiration or revocation
               of another authorization granted to the corporation under
               sub-section (1) in relation to the contract, arrangement or
               understanding.

(6) Subject to this Part, the Commission may, upon application by a
corporation, grant an authorization to the corporation to engage in conduct
that would or may constitute engaging in the practice of exclusive dealing
and, while such an authorization remains in force, section 47 does not prevent
the corporation from engaging in that conduct in accordance with the
authorization.

(7) Subject to this Part, the Commission may, upon application by a
corporation, grant an authorization to the corporation to acquire shares in
the capital, or to acquire assets, of a body corporate and, while such an
authorization remains in force, section 50 does not prevent the corporation
from acquiring shares in the capital, or from acquiring assets, of the body
corporate in accordance with the authorization.