Tuesday, June 9, 2009
The Contract Requirement for the Joint Venture Exceptions under Sections 44ZZRO and 44ZZRP of the Cartel Bill
Posted by D. Daniel Sokol
ABSTRACT: The joint venture exceptions under ss 44ZZRO and 44ZZRP of the Bill require that the cartel
provision be contained in a contract, as distinct from an arrangement or understanding, except in the limited circumstances specified in s 44ZZRO(1A)(1B) and s 44ZZRP(1A)(1B) (the ‘contract proxy provisions’). This is unsatisfactory. The contract proxy provisions were included in amendments to the Bill in May 2009. The amendments were made in an attempt to respond to the extensive criticism made of the requirement of a contract for the jv exceptions.