Document ID: chunk:federal_register_of_legislation:C2004A01719:body:0:p21
Version: federal_register_of_legislation:C2004A01719
Segment Type: other
Provision Reference: 
Character Range: 49863–52490

services or would, but for the convenant, supply or acquire, or be likely to supply or acquire, goods or services.
"(2) A corporation or a person associated with a corporation shall not—
     (a) require the giving of a covenant, or give a covenant, if the proposed covenant has the purpose, or would have or be likely to have the effect, of substantially lessening competition in any market in which—
       (i) the corporation, or any person associated with the corporation by virtue of paragraph (7)(b), supplies or acquires, is likely to supply or acquire, or would, but for the covenant, supply or acquire, or be likely to supply or acquire, goods or services; or
       (ii) any person associated with the corporation by virtue of the operation of paragraph (7)(a) supplies or acquires, is likely to supply or acquire, or would, but for the covenant, supply or acquire, or be likely to supply or acquire, goods or services, being a supply or acquisition in relation to which that person is, or would be, under an obligation to act in accordance with directions, instructions or wishes of the corporation;
     (b) threaten to engage in particular conduct if a person who, but for sub-section (1), would be bound by a covenant does not comply with the terms of the covenant; or
     (c) engage in particular conduct by reason that a person who, but for sub-section (1), would be bound by a covenant has. failed to comply, or proposes or threatens to fail to comply, with the terms of the covenant.
"(3) Where a person—
     (a) issues an invitation to another person to enter into a contract containing a covenant;
     (b) makes an offer to another person to enter into a contract containing a covenant; or
     (c) makes it known that the person will not enter into a contract of a particular kind unless the contract contains a covenant of a particular kind or in particular terms,
the first-mentioned person shall, by issuing that invitation, making that offer or making that fact known, be deemed to require the giving of the covenant.
"(4) For the purposes of this section, a covenant or proposed covenant shall be deemed to have, or to be likely to have, the effect of substantially lessening competition in a market if the covenant or proposed covenant, as the case may be, would have, or be likely to have, that effect when taken together with the effect or likely effect on competition in that market of any other covenant or proposed covenant to the benefit of which—
     (a) a corporation that, or person who, is or would be, or but for sub-section (1) would be, entitled to the benefit of the first-mentioned