Plain language law

New Zealand law explained for everyone

Commerce Act 1986

5: Application of Act to the Crown

You could also call this:

"The government must follow trade rules, but has some special exceptions."

Illustration for Commerce Act 1986

This Act applies to the government, known as the Crown, when it is involved in trade. You need to know that the Crown is not treated the same as other people or companies in some situations. The Crown does not have to pay fines, even if it breaks the rules in section 80 of this Act, which you can read more about by following the link to section 80.

The Crown cannot be taken to court and prosecuted for breaking the law in this Act. If the Crown is thought to have broken a rule in this Act, and that break is considered a crime, the Commerce Commission or the person affected can ask the court to say whether the Crown really did break the rule.

If the court is sure the Crown broke the rule, it can make a statement saying so, which is called a declaration.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM87959.

Topics:
Business > Fair tradingGovernment and voting > Government departments
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4: Application of Act, or

"This law applies to things you do in New Zealand, or that affect New Zealand, even if you're not here."

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6: Application of Act to Crown corporations, or

"The law applies to Government companies that buy and sell things."

5Application of Act to the Crown

  1. Subject to this section, this Act shall bind the Crown in so far as the Crown engages in trade.

  2. The Crown shall not be liable to pay a pecuniary penalty under section 80.

  3. The Crown shall not be liable to be prosecuted for an offence against this Act.

  4. Where it is alleged that the Crown has contravened any provision of this Act and that contravention constitutes an offence, the Commission or the person directly affected by the contravention may apply to the court for a declaration that the Crown has contravened that provision; and, if the court is satisfied beyond a reasonable doubt that the Crown has contravened that provision, it may make a declaration accordingly.