Re Vanfi (Aust) Pty Limited v Novasonic Corporation Pty Limited [1982] FCA 249 (10 December 1982)

FEDERAL COURT OF AUSTRALIA

Re: VANFI (AUST.) PTY. LIMITED
And: NOVASONIC CORPORATION PTY. LIMITED
No. NSWG213 of 1982
Trade Practices

COURT

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
Keely J.

CATCHWORDS

TRADE PRACTICES - consumer protection - misleading or deceptive conduct - interlocutory injunction - hi-fi products with Sansui trademark sold after product modified without authority - whether sale will necessarily contravene the Act notwithstanding undertakings as to notices to customers.

HEARING

MELBOURNE
10:12:1982

DECISION

This application by Vanfi (Aust.) Pty. Limited (the applicant), as amended by consent at the hearing, seeks interlocutory injunctions to restrain Novasonic Corporation Pty. Limited (the respondent) "until the hearing and determination of the application herein or further order from advertising, promoting, causing to be advertised or promoted, offered for sale or selling, causing to be offered for sale or causing to be sold any goods under or by reference to the name, mark or style 'Sansui' unless those goods have been first supplied in Australia by the applicant or any other person duly authorised to supply such goods in Australia by Sansui Electric Co. Ltd.". The action seeks declarations that various acts "constituted or constitute conduct by the respondent in trade or commerce which contravenes Sections 52, 53(a), 53(c) and 53(g) and Section 55 of the Trade Practices Act 1974" and injunctions under s. 80 of the Act.

In Sydney on 19 November, 1982 Franki J. refused to grant an interim ex parte injunction and adjourned the matter for hearing in Melbourne on Monday 22 November, 1982. On 23 November, 1982 Woodward J. made orders which included the following :-

"The Applicant by its counsel having undertaken to the Court to pay to any party adversely affected by the interlocutory injunction granted herein such compensation (if any) as the Court thinks just in such manner as the Court directs the Court orders that :

1. The Respondent be and is hereby restrained until 4.15 in the afternoon of the 3rd day of December 1982 or further order from (whether by itself, its servants or agents or any of them or otherwise howsoever) advertising, promoting, causing to be advertised or promoted, offering for sale or selling, causing to be offered for sale or causing to be sold, any goods under or by reference to the name, mark or style 'Sansui' unless those goods have been first supplied by the Respondent by the Applicant. . . "

In the present hearing a considerable amount of evidence was placed before the Court including more than 60 affidavits and some cross-examination. There was a conflict of evidence as to certain matters including the extent to which the respondent's products failed to comply with Australian standards. As these are interlocutory proceedings it is undesirable that I should make any findings as to the matters in dispute. However, shortly before his final address, Mr. Shavin of counsel, on behalf of the applicant, submitted that, on the material before it, the Court should be satisfied that there is a strong prima facie case that :

"(a) The applicant purchases from Sansui Electric Co. Ltd. in Japan (which I will refer to as Sansui) goods specially manufactured by Sansui for the

Australian market that comply with all relevant Australian standards;

(b) Sansui manufactures a different quality of product for sale to markets other than Australia which do not have Australia's minimum standards;

(c) The respondent purchases these other goods manufactured by Sansui and modifies them before sale in Australia;

(d) The goods sold by the respondent do not comply in all respects with Australian standards;

(e) The modifications undertaken have not been approved by Sansui;

(f) The products sold by the respondent do not have a manufacturer's warranty, nor is it possible for the respondent to provide the same service as that provided by the applicant.

It follows from that that there are the following propositions of fact: That the goods marketed by the respondent utilising the mark Sansui :-

(a) Have not in fact been prepared for market by the proprietor of the mark;

(b) Have been modified by altering the wiring and flexes;

(c) Are in fact of a different quality (referring to the standards)."

Mr. Neil of counsel, on behalf of the respondent, conceded for the purpose

of this interlocutory proceeding and without prejudice to the respondent's right to dispute matters in the ultimate hearing, the statements contained in the first six paragraphs above - (a), (b), (c), (d), (e) and (f) - but did not concede all the implications of some of the words used by Mr. Shavin in those paragraphs. On a similar basis he conceded the three "propositions of fact" advanced by Mr. Shavin towards the end of the passage quoted above (which also bear the lettering (a), (b) and (c)).

The principles applicable to the present application were stated by the Full Court in World Series Cricket Pty. Ltd. v Parish (1977) 16 A.L.R. 181 which cited the judgment of the Full High Court in Beecham Group Ltd. v Bristol Laboratories Pty. Ltd. [1968] HCA 1; (1968) 118 C.L.R. 618.

I am satisfied that the applicant has shown a prima facie case that at the ultimate hearing it will establish that the respondent's conduct has constituted a contravention of the Trade Practices Act. I accept Mr. Shavin's submission that, on the question of the balance of convenience, the public interest in preventing the consumer from being misled is very important and that on the present material the damage that is likely to be suffered by the applicant if an injunction is not granted is probably at least equal to the damage likely to be suffered by the respondent.

However the Court's power under s. 80(2) of the Trade Practices Act is to grant interim injunctions "where in the opinion of the Court it is desirable to do so". Accordingly it is appropriate to consider the undertakings offered by the respondent during the hearing. They were the subject of considerable discussion and a substantial number of amendments during the course of the five day hearing of this matter.

Last Friday, 3 December, 1982, the respondent proposed certain undertakings to the Court in the course of a submission that the orders made by Woodward J. on 23 November, 1982 should not be continued. Notwithstanding the proposed undertakings the Court decided to continue the injunctions and, by reason of a later order, they now remain in force until the determination of the present interlocutory proceedings. On the next sitting day, 6 December, 1982, Mr. Neil proposed undertakings which went further than those previously offered and included draft notices to customers. He also invited suggestions from the applicant as to the form of any undertakings.

On the following day, 7 December, 1982, Mr. Shavin, having regard to the discussion which had occurred as to the respondent's proposed undertakings and associated documents, handed in a document in the following form :-

"THIS PRODUCT

- has been modified WITHOUT the approval of the manufacturer
- does not comply with the minimum safety standards of the manufacturer and the Australian Standards Association
- is not covered by a warranty from either the Australian Sansui distributor or manufacturer
- is of inferior quality to the products specially designed and manufactured for Australian conditions by the manufacturer
- has had its serial number removed by a person not authorised by the manufacturer to do so.

This proposal is submitted by the Applicant without prejudice to its primary contentions that :

(a) any sale by the respondent of products bearing the Sansui Mark which have been modified by unauthorised persons is conduct in contravention
(b) the use of this disclaimer will mislead and deceive consumers as to the origin and quality of Sansui marked products."

Mr. Shavin added an "express disclaimer" in similar terms to paragraphs (a) and (b) of the document. Mr. Neil then handed in further proposals as to notices to customers and sales personnel relevant to the respondent's proposed undertakings and those documents were discussed in final addresses which commenced later that day.

Mr. Shavin submitted that "the sale of the goods . . . will necessarily and in all circumstances amount to misleading conduct, no matter what steps are taken by way of written notice or oral communication" and that if the Court accepted the undertakings proposed by the respondent then "the inevitable consequences . . . . will be to destroy the trade mark 'Sansui' in Australia and lead that mark to be liable to expungement. It is an important consequence because it does affect a party not before the Court". I am unable to accept either of those two submissions. In view of the urgency of this matter and the fact that injunctions restraining the respondent are still in force, I do not propose to deal with the cases cited by Mr. Shavin in support of his contentions; it is sufficient to say that, having read them, I do not consider that they support either of his propositions.

I have considered the proposed undertakings in light of the following statement by Mr. Neil :

"My clear instructions are that my clients are prepared to provide whatever simple documentary warning can be devised to provide the public with clear information as to the reality of the situation. . . . We do not seek to hide behind any form of words. We would welcome anything my

learned friend wants to put as to deficiencies in this documentation.

My client is prepared to put to the public exactly what the situation is, and then in the market place they rest upon price and they take the detriment of all these matters; the consumer can make up his mind."

After the completion of final addresses the matter was stood down to enable

the respondent to formulate the full terms of the proposed undertaking to the Court. On the resumption Mr. Neil handed in a document headed "Minutes of Undertakings made by the Respondent and Directors of the Respondent" and labelled with the handwritten word "Respondent" to distinguish it from another document with the same heading but with the hand written word "Applicant". The former document contained proposed undertakings which the respondent submitted that the Court should accept. The latter document contained the respondent's understanding of the form of undertakings which the applicant would urge the Court to require from the respondents if - contrary to the applicant's basic submissions - undertakings were to be accepted. Submissions were put by the applicant as to the form of the proposed undertakings and it is convenient, in dealing with them, to relate them to the former document, i.e. the document containing the "minutes of undertakings" proposed by the respondent. That document read as follows :-

"MINUTES OF UNDERTAKINGS MADE BY THE RESPONDENT AND DIRECTORS OF THE

RESPONDENT (RESPONDENT)

Without prejudice to the Respondent's right to deny or dispute the allegations made by the Applicant against it in this Application and without the Respondent appearing to make any concession to the Applicant or any admission in respect of such allegations, the Respondent and its Directors, Tony Grana and Tony Mulally make the following undertakings to the Court which shall operate until the conclusion of the proceedings arising from the Applicant's motion for interlocutory injunctions :-

1.(a) That the Respondent shall prominently display on or near each package system of 'Sansui' equipment displayed for sale in each of its shops a notice in the terms set out in the First Schedule.

(b) The said notice will be of minimum dimensions of two feet by one foot and have a red border. The words "Important Notice" (Warning) will be three inches tall. The remaining words will be one inch tall. The words will be laid out so as to substantially occupy the whole sign.

2.(a) That a dangler type tag containing the words in the First Schedule will be appended to each item on display or sold.

(b) The said tag will be of minimum dimensions of four inches by four inches. The words "Important Notice" (Warning) will be three quarter inches tall. The remaining words will be approximately three eighths inches tall. The words will be laid out so as to substantially occupy the whole tag.

3.(a) That a sticker conforming to A.S. 3300-1980 para 7.14 will be affixed to the front and rear of each item displayed or sold in the terms of the First Schedule.

(b) The said sticker will be of minimum dimensions of three inches by three inches for all units other than turn-tables and two inches by four inches for turn-tables. The words "Important Notice" (Warning) will be one half inch tall. The remaining words will be approximately one quarter inch tall. The words will be laid out so as to substantially occupy the whole sign.

4. That the Respondent will not sell to any customer any of the items unless the customer shall first sign a Customer Awareness Form in the terms set out in the Second Schedule. The customer shall be provided with a copy of the said Form.

5. That the Directors of the Respondent will visit each Hi-Fi City store prior to display or sale of any Sansui equipment in the respective stores and will hand to all salesmen :-

(a) a copy of these undertakings and Schedules;

(b) a letter in the terms set out in the Third Schedule.

6. The Directors will obtain from the salesmen in each store signed acknowledgements of receipt of copies of the documents in the last paragraph prior to display or sale in the respective stores.

7. That a sticker conforming to A.S. 3300-1980 para 7.14 will be affixed to each item displayed or sold in the terms in the Fourth Schedule.

8. That the Respondent will insert in each advertisement in respect of any Sansui equipment that it advertises for sale a notice in reasonable type in the terms of the First Schedule.

9. That any advertisements will state only the purchase price per item or package and will not state a savings figure.

10. That the colour green will not be used in any of the notices or advertisements referred to herein.

11. That no statement will be made to any member of the public in relation to any product bearing the name 'Sansui' that conflicts with or is inconsistent with (or in any way qualifies) the notices referred to in the Schedules hereto.

12. Liberty to apply is reserved to either party.

FIRST SCHEDULE (RESPONDENT)

IMPORTANT NOTICE

1. This product is not covered by a manufacturer's warranty.

2. It does not have a manufacturer's serial number.

3. It does not comply with Australian Standards.

4. It was not obtained by Hi Fi City from the Australian distributor of Sansui.

5. Modifications to the product were not performed by the manufacturer or the Australian distributor.

SECOND SCHEDULE (RESPONDENT)

CUSTOMER AWARENESS FORM

Please read the information below and sign before you decide to purchase a product bearing the name 'Sansui'.
Please hand a copy to our representative and retain a copy for your own use.

NOTE : The information is as follows :

1. This product is not covered by a manufacturer's warranty.

2. It does not have a manufacturer's serial number.

3. It does not comply with Australian Standards.

4. It was not obtained by Hi Fi city from the Australian distributor of Sansui.

5. Modifications to the product were not performed by the manufacturer or the Australian distributor.
. . . . . . . . . . . . . . . . . . . .
Name of Customer (please print)
. . . . . . . . . . . . . . . . . . . .
Signature of Customer
. . . . . . . . . . . . . . . . . . . .
Date

THIRD SCHEDULE (Agreed)

NOTICE TO ALL HI FI CITY SALES PERSONNEL

The following enclosed signs are to be prominently displayed with all Sansui products offered for sale.

TYPE (1) - A dangler sign to be affixed to the front of each product.

TYPE (2) - A sticker firmly affixed to the front and rear of each product.

TYPE (3) - A mounted sign on or near each system offered for sale.

We enclose a Customer Awareness form to be signed by the customer who is to give you one copy and retain one copy.

The two directors of Novasonic Corporation will personally visit each store before any Sansui goods are offered for sale. No goods are to be sold until that time.

On their visit they will explain the positioning of the notices to ensure that each customer is in no way misinformed or misled in the purchase of Sansui goods.

It is most important that sales personnel comply rigidly with these conditions.
Failure to co-operate or comply with the Court's orders in relation to the signs or Customer Awareness form will result in instant dismissal.

Tony Grana
Novasonic Corporation

FOURTH SCHEDULE (Agreed)

STICKER

Not covered by warranty by manufacturer or Australian distributor."

I have considered the submissions made on behalf of the applicant as to the

form of the proposed undertakings and the associated documents. I have also considered the form of document proposed by the applicant (as an alternative if its primary contentions failed) together with the submissions vigorously advanced by Mr. Shavin on its behalf as to the likelihood of customers being misled or deceived notwithstanding the proposed notices and other documents.

At different times during the hearing Mr. Shavin made many criticisms of the undertakings proposed by the respondent although at all times he made it clear that, irrespective of any amendments of them, they could not possibly support a refusal to grant injunctions. Towards the end of his final address he advanced nine grounds upon which he said that the Court should not accept any undertaking in lieu of an injunction in the form sought by the applicant. One of his grounds was that "any product selling (with) such a label will be unsaleable unless the salesman himself is able to dilute its impact" and another ground was that it would not be possible to adequately supervise the conduct of the salesmen.

In this connexion he referred to proceedings before Woodward J. on 25 November, 1982 in respect of an alleged contempt of court by the respondent. On that day Mr. Roger Gillard of counsel, on behalf of the respondent, read the following statement to the Court :-

"The respondent conducts a chain of 15 shops in NSW, Queensland, Victoria and ACT. It only has one shop in Victoria which is located on the end of Bourke and Swanston Streets. The respondent is based in Sydney. The shops retail stereo and video equipment. The respondent has a sale force of about 30 people. The respondent through one of its directors phoned every shop starting 8.45 a.m. on Wednesday 25/11/82 to inform the staff of the order made by the Court on Tuesday 23/11/82. The director instructed a member of staff to remove all 'Sansui' equipment and advertising displays and not to sell or offer for sale such equipment. This ring around finished at 9.30 a.m.. Then between 10.00 a.m. and 12.00 noon the respondent phoned each shop again. On this occasion the respondent through its director spoke to the manager of each shop. The manager of each shop assured the director that all Sansui products had been removed from the show cases and shop floors. The director reiterated his earlier instructions not to sell etc.. After 12.00 noon the respondent received information from its NSW solicitor that a breach of the order had occurred at an unspecified outlet. The respondent was advised that this information had come from the applicant's solicitors in Melbourne. The same director then phoned around his shops again and repeated his earlier instructions not to sell etc.. Notwithstanding these instructions, sales of 'Sansui' equipment have been made on several occasions since the order was pronounced at 11.00 a.m. on Tuesday 23 November. Apparently most of the sales were made from the shop in Melbourne. The respondent regrets the actions of its employees. It wishes to disown them but reluctantly accepts that it is responsible for their actions, notwithstanding they were done in contravention of their express instructions. The respondent wishes to state to the Court that it is genuinely concerned to and intends and has always intended to observe the injunction order made on the 23/11/1982".

Certain undertakings (the terms of which are set out later) have been proposed by the respondent which relate specifically to the conduct of sales personnel and the conduct of directors of the respondent in relation to salesmen. Mr. Shavin has referred to possible difficulities in ensuring that the terms of the proposed undertakings are carried out. It was made clear during the course of the hearing that, if undertakings were accepted by the Court and the application for interlocutory injunctions refused, it would stem from the acceptance of Mr. Neil's statement, at pages 163-4 of the transcript (to which I have already referred), as to his "clear instructions" that the respondent will "provide the public with clear information as to the reality of the situation" and "is prepared to put to the public exactly what the situation is". It was also made clear that the applicant would be given liberty to apply for injunctions if any of the undertakings were breached.

In my opinion the following amendments should be made to the "Minutes of Undertakings" proposed by the respondent :

1. Introductory paragraph. Insert after "the Court" the words "in relation to all Sansui marked products or items sold by or on behalf of the respondent which were not purchased from Sansui Electric Co. Ltd. or its Australian Distributor (hereinafter called the products or items)".

2. End of introductory paragraph. The undertakings are to operate until the hearing and determination of the action or further order - not "until the conclusion of the proceedings arising from the applicant's motion for interlocutory injunctions". (This error, doubtless flowing from a draft proposed earlier in the hearing, was not referred to by either party).

3. Paragraph 1(a). Insert after the words "package system" the words "or individual item".

4. Paragraphs 1(b), 2(b), and 3(b). Delete from each the word "(Warning)". Having considered the respective arguments as to this aspect I consider that the words "Important Notice" are sufficient in all the circumstances.

5. Paragraph 1(b). After the words "one foot" insert ", use black letters on a white background".

6. Paragraph 4. Add at the end the following sentence. "The respondent shall retain, as part of its records of sales, a copy of each form so signed and shall insert on the form the invoice number for the purchase".

7. Paragraph 8. Delete the words "in reasonable type" and add at the end a new sentence as follows : "The heading 'Important Notice' shall be in type not smaller than the main word 'Sansui' appearing in the advertisement and the whole of the notice shall be legible, shall be placed in a prominent position and, in any event, shall not occupy less than 25% of the total advertising space".

8. Paragraph 11. Substitute the words "detracts from" for the word "qualifies" and delete the brackets.

9. Paragraph 12 is a matter appropriate for the Court's order and should be deleted from the undertaking.

10. New Paragraph 12 as follows : "The respondent shall make and retain records of all sales of the products or items concerned.

11. First Schedule. Delete word "(Respondent)" from heading.

12. First Schedule. Delete all the words after "Important Notice" and substitute therefor part of the applicant's draft which commences with the words "This Product" except that the word "not" in the second and third items should be in capitals and be underlined and the words "inferior quality to" in the fourth item should be replaced by the word "lower quality than". The applicant submitted that this schedule should commence with a statement that "The Manufacturer accepts no liability for death or injury arising out of the use of this product." However I do not consider it appropriate that it should contain any statement by the respondent as to whether the manufacturer, which is not a party to these proceedings, would accept no liability.

13. Second Schedule. Delete word "(Respondent)" from heading. Add the word "and address" between the word "Name" and the words "of customer". Add the words "Invoice Number" with space for it to be inserted.

14. Third Schedule. Delete word "(Agreed)" from heading.

15. Fourth Schedule. Delete word "(Agreed)" from heading.

The full terms of the proposed undertakings, as amended in accordance with the views I have expressed, are as follows :-

"MINUTES OF UNDERTAKINGS MADE BY THE RESPONDENT AND DIRECTORS OF THE

RESPONDENT
Without prejudice to the Respondent's right to deny or dispute the allegations made by the Applicant against it in this Application and without the Respondent appearing to make any concession to the Applicant or any admission in respect of such allegations, the Respondent and its Directors, Tony Grana and Tony Mulally make the following undertakings to the Court in relation to all Sansui marked products sold by or on behalf of the respondent not purchased from Sansui Electric Co. Ltd. or its Australian Distributor (hereinafter called the products or items) which shall operate until the hearing and determination of the action or further order :-

1.(a) That the Respondent shall prominently display on or near each package system or individual item of 'Sansui' equipment displayed for sale in each of its shops a notice in the terms set out in the First Schedule.
(b) The said notice will be of minimum dimensions of two feet by one foot, use black letters on a white background and have a red border. The words "Important Notice" will be three inches tall. The remaining words will be one inch tall. The words will be laid out so as to substantially occupy the whole sign.
2.(a) That a dangler type tag containing the words in the First Schedule will be appended to each item on display or sold.
(b) The said tag will be of minimum dimensions of four inches by four inches. The words "Important Notice" will be three quarter inches tall. The remaining words will be approximately three eighths inches tall. The words will be laid out so as to substantially occupy the whole tag.
3.(a) That a sticker conforming to A.S. 3300-1980 para 7.14 will be affixed to the front and rear of each item displayed or sold in the terms of the First Schedule.
(b) The said sticker will be of minimum dimensions of three inches by three inches for all units other than turn-tables and two inches by four inches for turn-tables. The words "Important Notice" will be one half inch tall. The remaining words will be approximately one quarter inch tall. The words will be laid out so as to substantially occupy the whole sign.
4. That the Respondent will not sell to any customer any of the items unless the customer shall first sign a Customer Awareness Form in the terms set out in the Second Schedule. The customer shall be provided with a copy of the said Form. The respondent shall keep a copy of each form so signed and shall insert on the form the invoice number for the purchase.
5. That the Directors of the Respondent will visit each Hi-Fi City store prior to display or sale of any Sansui equipment in the respective stores and will hand to all salesmen :-
(a) a copy of these undertakings and Schedules;
(b) a letter in the terms set out in the Third Schedule.
6. The Directors will obtain from the salesmen in each store signed acknowledgements of receipt of copies of the documents in the last paragraph prior to display or sale in the respective stores.
7. That a sticker conforming to A.S. 3300-1980 para 7.14 will be affixed to each item displayed or sold in the terms in the Fourth Schedule.
8. That the Respondent will insert in each advertisement in respect of any Sansui equipment that it advertises for sale a notice in the terms of the First Schedule. The words "Important Notice" shall be in type not smaller than the main word Sansui appearing in the advertisement and the whole of the notice shall be legible, shall be placed in a prominent position and, in any event, shall not occupy less than 25% of the total advertising space.
9. That any advertisements will state only the purchase price per item or package and will not state a savings figure.
10. That the colour green will not be used in any of the notices or advertisements referred to herein.
11. That no statement will be made to any member of the public in relation to any product bearing the name 'Sansui' that conflicts with or is inconsistent with or in any way detracts from the notices referred to in the Schedules hereto.
12. The respondent shall make and retain records of all sales of the products or items concerned.

FIRST SCHEDULE
IMPORTANT NOTICE

THIS PRODUCT

- has been modified and imported into Australia WITHOUT the approval of the manufacturer
- does NOT comply with the minimum safety standards of the manufacturer and the Australian Standards Association
- is NOT covered by a warranty from either the manufacturer or the Australian distributor
- is of lower quality than the products specially designed and manufactured for Australian conditions by the manufacturer
- has had its serial number removed by a person not authorised by the manufacturer to do so.

SECOND SCHEDULE

CUSTOMER AWARENESS FORM

Please read the information below and sign before you decide to purchase a product bearing the name 'Sansui'.
Please hand a copy to our representative and retain a copy for your own use.

NOTE : The information is as follows :

THIS PRODUCT
- has been modified and imported into Australia WITHOUT the approval of the manufacturer
- does NOT comply with the minimum safety standards of the manufacturer and the Australian Standards Association
- is NOT covered by a warranty from either the manufacturer or the Australian distributor
- is of lower quality than the products specially designed and manufactured for Australian conditions by the manufacturer
has had its serial number removed by a person not authorised by the manufacturer to do so
. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
Name and address of Customer (please print)
. . . . . . . . . . . . . . . . . . . .
Signature of Customer
. . . . . . . . . . . . . . . . . . . .
Date
. . . . . . . . . . . . . . . . . . . .
Invoice Number
THIRD SCHEDULE

NOTICE TO ALL HI FI CITY SALES PERSONNEL

The following enclosed signs are to be prominently displayed with all Sansui products offered for sale.
TYPE (1) - A dangler sign to be affixed to the front of each product.
TYPE (2) - A sticker firmly affixed to the front and rear of each product.
TYPE (3) - A mounted sign on or near each system offered for sale.
We enclose a Customer Awareness form to be signed by the customer who is to give you one copy and retain one copy.
The two directors of Novasonic Corporation will personally visit each store before any Sansui goods are offered for sale. No goods are to be sold until that time.
On their visit they will explain the positioning of the notices to ensure that each customer is in no way misinformed or misled in the purchase of Sansui goods.
It is most important that sales personnel comply rigidly with these conditions.
Failure to co-operate or comply with the Court's orders in relation to the signs or Customer Awareness form will result in instant dismissal.
Tony Grana
Novasonic Corporation

FOURTH SCHEDULE

STICKER

Not covered by warranty by manufacturer or Australian distributor."

Accordingly I have decided that, if the respondent and its Directors Tony Grana and Tony Mulally, give to the Court undertakings in the terms of the "Minutes of Undertakings made by the Respondent and Directors of the Respondent" which is set out in full above, as amended in the manner which I have set out above, the application for interlocutory injunctions should be refused but that liberty be reserved to either party to apply.