Case Law

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Promotional Competitions under the Consumer Protection Act

For just over a decade, promotional competitions have been regulated by the Lotteries Act, 1997, which has been in effect since 1 March 2000. Attorneys, in-house counsel and other legal practitioners have become used to advising on the legality of promotional competitions with reference to section 54 of the Lotteries Act and the regulations promulgated under that section. But when the Consumer Protection Act, 2008 (“the CPA”) comes into force on 31 March 2010, as expected, the regulation of promotional competitions in South Africa will change significantly.

The CPA will replace the Lotteries Act’s current definition of “promotional competition”. In future, section 1 of the Lotteries Act will define a “promotional competition” as having the meaning set out in section 36 of the CPA.
 18/03/2011  | Posted in: Competition Law and Commercial Law
SCA spells out procedure under Section 5(4) of the Counterfeit Goods Act

In a judgment handed down on 29 November 2010 in the matter between the Minster of Trade and Industry v E L Enterprises (193/10) [2010], the Supreme Court of Appeal considered the correct procedure to be followed in applications to confirm the seizure without a warrant of suspected counterfeit goods.

The procedure is prescribed by Section 5(4)(a) of the Counterfeit Goods Act No. 37 of 1997 (“the Act”). Since the commencement of the Act, the practice has been to bring a full-blown High Court application under the section on notice to the respondents. The court held that this is not the procedure contemplated by the section; though an applicant would not be non-suited by doing so provided that the application is at least issued within the prescribed time period.
 18/03/2011  | Posted in: Intellectual Property
SMEs underusing Competition Act’s powers

Small and medium-sized enterprises (SMEs) are underusing the Competition Act’s powers that afford such businesses the opportunity to enter into preferential agreements with larger com- panies, says legal firm Adams & Adams competition law practice group member Jac Marais.

The Act’s aims, in section 2, include the promotion of equal opportunities for SMEs, as well as the spreading of ownership to historically disadvantaged persons.
 18/03/2011  | Posted in: Competition Law and Commercial Law
When is research & development tax deductable?

The South African government introduced Section 11D of the Income Tax Act number 58 of 1962 to encourage and incentivise private sector investment towards the research and development of scientific or technological activities. The Act assists in ensuring that research and development activities are conducted within South Africa, and this will ultimately resulting in a positive economic growth.

Section 11D of the Act provides for two types of incentives - a 150 percent deduction of operating expenses and accelerated depreciation of any building or part thereof, machinery, plant, implements, utensil or article.
 18/03/2011  | Posted in: Commercial Law and Tax Law
Recognition of a decision on restoration of priority under PCT in South Africa

In terms of the Paris Convention, a patent application may claim priority from a prior filed application in a convention country relating to the same subject matter, provided that the prior filed application in the convention country was lodged not earlier than one year before lodgement of the application claiming priority. In other words, there exists a 12 month period in which to claim priority. Rule 26bis.3 of the regulations of the Patent Cooperation Treaty (PCT) makes provision for the restoration of the right to claim priority if an international application has an international filing date which is later than the date on which the priority period expired but within the period of two months from that date. Upon request of the applicant, the receiving Office shall restore the right of priority if the Office finds that a criterion applied by it (“criterion for restoration”) is satisfied, namely, that the failure to file the international application within the priority period:
(i) occurred in spite of due care required by the circumstances having
 18/03/2011
The impact of the Road Accident Fund Amendment Act on the legal profession

On 25 November 2010, the Constitutional Court delivered judgment in the Law Society of South Africa and 10 others’ constitutional challenge to certain provisions of the Road Accident Fund Amendment Act of 2005 (“Amendment Act”).

To qualify for a reasonable claim under the Amendment Act, a claimant has to prove that he/she sustained at least a serious injury. The Amendment Act not only limits the number of road accident victims who will be able to claim from the RAF, but also limits the value of their claims, as a result of the limiting provisions relating to general damages and the caps imposed on loss of income or support.
 18/03/2011
Is an insurer liable for a negligent misrepresentation causing pure economic loss?

This was the question which the Supreme Court of Appeal (SCA) had to answer in the matter of Delphisure Group Insurance Brokers Cape (Pty) Ltd vs Dippenaar and Others.
The first and second respondents in the appeal, Dippenaar and another, were wheat farmers in the Western Cape who instituted a claim against the appellant, Delphisure. The appellant was an insurance broker that sole crop insurance product known as Farmsure.
 18/03/2011
In terms of Section 86(10) of the National Credit Act No. 34 of 205 (“the NCA”), where a

In terms of our law and in particular the General Law Amendment Act No. 50 of 1956 (“the Act”) no contract of suretyship shall be valid unless the terms thereof are embodied in a written document signed by or on behalf of the sureties.

There are 5 essential terms which need to be contained in a contract of suretyship, namely the identity of the creditor, the debtor, the surety and the nature and amount of the principal debt. Failure to complete the essential terms of the suretyship agreement would mean that the contract would be invalid for failure to comply with the statutory formalities.

In the recent matter of Nedbank Limited vs Wizard Holdings (Pty) Ltd and Others the Johannesburg High Court considered an application or summary judgment by the Bank against the defendants who were sureties for a close corporation.
 18/03/2011
South Africa: a debtor’s paradise or not?

In terms of Section 86(10) of the National Credit Act No. 34 of 205 (“the NCA”), where a consumer is in default under a credit agreement that is being reviewed in terms of that Section, the credit provider in respect of that agreement may give notice in the prescribed manner to the consumer, to terminate that review, to the debt counsellor and the National Credit Regulator, at any time at least 60 business days after the date on which the consumer applied for debt review.
 18/03/2011
Are you ready for the Consumer Protection Act?

The Consumer Protection Act, 2008 (the CPA) is coming into force on 31 March 2011. It will have a significant effect on the supply of goods and services. The act will also regulate the relationship between suppliers and consumers in detail.

One of the most controversial provisions of the CPA relates to the liability of suppliers. If someone supplies goods, and those goods cause harm to the consumer, the supplier will be liable for the harm. This will be the case even if the supplier was not negligent. Further, all parties in the supply chain can be held liable by the consumer. This includes the manufacturer, the wholesaler and the business that sells the goods to the public.
 18/03/2011  | Posted in: Banking Law and Civil Litigation
Raise a glass to geographical trade marks

Swartland Winery was established as a co-operative in what was then the Malmesbury Wine of Origin District in the Western Cape in 1948. This district, which became known as “Swartland” in 1975, today has its own wine route, spanning Malmesbury, Piketberg, Porterville, Riebeek Kasteel and Riebeek West. It boasts many reputable wineries including Riebeek Cellars, Kloovenburg, Allesverloren, Darling Cellars and Pulpit Rock, to name but a few.
 18/03/2011  | Posted in: Intellectual Property
Practical Law Company (PLC) Cross-border Life Sciences Handbook 2010/11

Click here to read the article Practical_Law_Company_(PLC)_Cross-border_Life_Sciences_Handbook_2010-11.pdf
 18/03/2011  | Posted in: Intellectual Property and Patents
Forewarned is forearmed: when deregistration matters most

The deregistration of companies has far reaching consequences for companies and is fast becoming a pressing concern for large scale creditors, such as financial institutions and insurance companies, that none can afford to ignore.
 18/03/2011  | Posted in: Commercial Law
Competition Law Alert: Competition Commission Invites Construction Firms to Come Clean

The Competition Commission is investigating 65 bid-rigging cases in the construction sector, involving more than 70 projects worth about R29-billion.

According to the Competition Commission, it has uncovered anti-competitive conduct across the construction industry.
 18/03/2011  | Posted in: Competition Law and Commercial Law
High Court makes ruling on notices ito Companies Act

The Transvaal Provincial Division has given judgment in African Sun Hotels (Pty) Ltd v The Registrar of Companies & another, Case No. 58013/2007, a case which has implications about formal notices sent to a company at its registered address.
 9/12/2008  | Posted in: Trade Marks and Intellectual Property
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The firm practises directly in several Southern African countries and through long-established associates in others.