The Conduct of “Price Undertakings” and “Interim Reviews” in the Anti-Dumping Regime of South Africa [Discussion of Casar Drahtseilwerk Saar GMBH V International Trade Administration Commission (66248/2014) 2020 ZAGPPHC 141 (14 February 2020)]

The Conduct of “Price Undertakings” and “Interim Reviews” in the Anti-Dumping Regime of South Africa [Discussion of Casar Drahtseilwerk Saar GMBH V International Trade Administration Commission (66248/2014) 2020 ZAGPPHC 141 (14 February 2020)]

Author: Clive Vinti

ISSN: 1996-2193
Affiliations: LLB (cum laude) LLM PhD, Senior Lecturer, Department of Public Law, University of the Free State
Source: Stellenbosch Law Review, Volume 33 Issue 3, 2022, p. 560 – 578
https://doi.org/10.47348/SLR/2022/i3a11

Abstract

The administration of anti-dumping investigations is the sole mandate of the International Trade Administration Commission (“ITAC”). This investigation has two stages, the preliminary and final investigation stages, which are accompanied by investigation reports at each stage. The investigation can be terminated or suspended after the preliminary investigation if the offending exporter ceases exports to the Southern African Customs Union (“SACU”) at the dumped prices or revises its prices such that ITAC is satisfied that injurious dumping has been eliminated. Twelve months after the publication of the final determination in the original investigation or the previous review, interested parties can request an interim review of the duty if there are significantly changed circumstances. It is these two aspects of dumping investigations that were the subject of litigation for the first time in South African law in Casar Drahtseilwerk Saar GMBH v International Trade Administration Commission (66248/2014) 2020 ZAGPPHC 141 (14 February 2020). This note assesses the novel approach employed by the court in readily construing these aspects of the anti-dumping investigation in South Africa in accordance with the jurisprudence on the Anti-Dumping Agreement. This approach is commendable in light of the ambivalent attitude of South African courts towards the country’s obligations in terms of the multilateral agreements of the World Trade Organization, despite the promulgation of local legislation to comply with these obligations and the constitutional injunction to prefer any reasonable interpretation of the legislation that is consistent with international law over any alternative interpretation that is inconsistent with international law.

Providing Greater Clarity on the Meaning of Basic Education [Discussion of Moko V Acting Principal, Malusi Secondary School 2021 3 SA 323 (CC)]

Providing Greater Clarity on the Meaning of Basic Education [Discussion of Moko V Acting Principal, Malusi Secondary School 2021 3 SA 323 (CC)]

Authors: G Adams and BV Slade

ISSN: 1996-2193
Affiliations: BComm LLB LLM (Stell), LLD Candidate, Department of Public Law, Faculty of Law, Stellenbosch University; BComm LLB LLM LLD (Stell), Associate Professor, Department of Public Law, Faculty of Law, Stellenbosch University
Source: Stellenbosch Law Review, Volume 33 Issue 3, 2022, p. 579 – 591
https://doi.org/10.47348/SLR/2022/i3a12

Abstract

Section 29(1)(a) of the Constitution of the Republic of South Africa, 1996 provides everyone with the right to a basic education. However, the exact meaning of a “basic education” as protected in this section has been rather uncertain as it is not defined in the Constitution or any legislative document. In Governing Body of the Juma Musjid Primary School v Essay 2011 8 BCLR 761 (CC), the Constitutional Court accepted that basic education includes, at a minimum, schooling from grades 1 to 9. In AB v Pridwin Preparatory School 2020 5 SA 327 (CC), Nicholls JA held that an educational institution which does not offer secondary or tertiary education, provides those attending the institution with a basic education. Several policy documents refer to basic education as the General Education and Training phase of schooling, which consists of schooling from grades 1 to 9. Given the uncertainty surrounding the exact ambit of a basic education, both in case law and legislation, the Constitutional Court in Moko v Acting Principal of Malusi Secondary School 2021 3 SA 323 (CC) had to answer the question “where does basic education end and further education begin?” The court’s decision provides clarity on the meaning of a basic education as protected in section 29(1)(a). This decision is to be welcomed given the importance of the right as a direct and unqualified right, and for its transformative potential. However, there is now a misalignment between the understanding of a basic education protected in section 29(1)(a) and several policy documents issued by the Department of Basic Education. This misalignment may lead to further confusion regarding the meaning of the right to a basic education and potentially negatively impact the realisation or fulfilment of the right. This note will consider the court’s decision, particularly in relation to its finding to the question posed above.

Reinstatement in the Context of ‘Deemed Dismissal’: A Critical Analysis of Recent Case Law

Reinstatement in the Context of ‘Deemed Dismissal’: A Critical Analysis of Recent Case Law

Authors: Chuks Okpaluba & Mpfariseni Budeli-Nemakonde

ISSN: 1996-2185
Affiliations: Research Fellow, Centre for Human Rights, University of the Free State, South Africa; Professor of Labour Law, School of Law, College of Law, UNISA
Source: South African Mercantile Law Journal, Volume 34 Issue 1, 2021, p. 1 – 28
https://doi.org/10.47348/SAMLJ/v34/i1a1

Abstract

The ‘deemed dismissal’ or ‘discharge’ clause is not mentioned either in the reinstatement provisions of section 193 of the Labour Relations Act 66 of 1995 (‘LRA’), or indeed, in any other provision of that Act. Such an expression can be traced to several public sector employment statutes such as: section 14(1)(a) of the Employment of Educators Act 76 of 1998; section 59(3) of the Defence Act 42 of 2002; and section 17(3)(a)(i) and (b) of the Public Service Act 103 of 1994 (‘PSA’). Notwithstanding that the substance and process of the ‘deemed dismissal’ disputes are quite different from those encountered in the law of unfair dismissal under the LRA, the determination whether reinstatement would be made in such a circumstance has been guided by the provisions of section 193(2)(a)–(d) of the LRA. After discussing the important South African cases of Phenithi v Minister of Education 2008 (1) SA 420 (SCA); Minister of Defence and Military Veterans v Mamasedi 2018 (2) SA 305 (SCA); and Ramonetha v Department of Roads and Transport, Limpopo [2018] 1 BLLR 16 (LAC), and those from the Botswana and Namibian jurisdictions, it becomes obvious that the Ramonetha case was quite different from the others. The conclusion, therefore, is that the judgment of the Labour Appeal Court sends a clear message to the employer that the statutory discretion invested in it by the PSA requires it to act within a space of time; the PSA does not give the employer the unbridled power to literally approbate and reprobate at the same time.

Good Faith is not Dead: It still Lives after Beadica 231 CC v Trustees, Oregon Trust

Good Faith is not Dead: It still Lives after Beadica 231 CC v Trustees, Oregon Trust

Author: Michele van Eck

ISSN: 1996-2185
Affiliations: Senior Lecturer, Department of Private Law, University of Johannesburg
Source: South African Mercantile Law Journal, Volume 34 Issue 1, 2021, p. 29 – 51
https://doi.org/10.47348/SAMLJ/v34/i1a2

Abstract

In Beadica 231 CC v Trustees, Oregon Trust, the Constitutional Court provided much-needed clarity on the role of equity principles (fairness, reasonableness and good faith) in contracts, in that the abstract principles found in equity principles will not apply directly to contractual engagements but will apply indirectly by means of public policy considerations. This article illustrates that this default position, as articulated by the Constitutional Court, does not completely exclude good faith in contractual engagements. In fact, good faith is infused in the entire contract lifecycle, starting from negotiation and presenting itself even in certain remedial action. In addition, there are a number of exceptions to the default position in that equity principles can be established by means of express incidentalia (in the form of good faith clauses), and could even be imported ex lege in consumer contracts by means of the Consumer Protection Act 68 of 2008. It can therefore be said that the operation of equity principles, such as good faith, in South African contractual engagements is neither dead nor obsolete. Rather, good faith has survived the Constitutional Court’s decision and continues to manifest itself in different ways in contracts reaffirming the place of good faith as a cornerstone principle in the operation of the law of contract.

Re-Acquisition by a Company of Own Issued Shares under Sections 48 and 114(1) of the Companies Act 71 of 2008: A Critical Assessment through Capprec

Re-Acquisition by a Company of Own Issued Shares under Sections 48 and 114(1) of the Companies Act 71 of 2008: A Critical Assessment through Capprec

Author: Simphiwe S. Bidie

ISSN: 1996-2185
Affiliations: Senior Lecturer, Nelson R. Mandela School of Law, University of Fort Hare
Source: South African Mercantile Law Journal, Volume 34 Issue 1, 2021, p. 52 – 87
https://doi.org/10.47348/SAMLJ/v34/i1a3

Abstract

Since the Companies Act 2008 came into being, there has been no clear direction regarding the interpretation to be given to the provisions regulating buy-back transactions. Recently, the provisions finally received some concrete attention in the judgment of Windell J in First National Nominees (Pty) Limited v Capital Appreciation Limited (Capprec). The judgment is important because it has since provided a measure of clarity on the potent interdependence between sections 48 and 114 of the 2008 Act, and how these must be interpreted. What is of interest is how Windell J set out and interpreted the operation and interdependence between section 48(2)(a), section 48(8)(b) and section 114 of the 2008 Act. Overall, the arguments from both parties in Capprec presented Windell J with a solid foundation that enabled the court to proffer a succinct and illuminating direction on the interpretation and operation of the provisions. This article attempts to extricate whether the course Windell J adopted in her judgment is consistent with what the 2008 Act contemplates, and if not, what would have been the appropriate course to take. The article demonstrates that Windell J did not seize the opportunity to thoroughly engage with section 114(1)(e) regulating buy-back schemes of arrangement and to ascertain what a scheme entails. This is despite the fact that in Capprec both parties’ arguments were underpinned by whether or not the proposed arrangement was a scheme. In this regard, Windell J’s approach is disappointing and is criticised because her interpretation means that the provisions of the 2008 Act have still not been clarified, although we have been waiting for 13 years for clarification. This is an unnecessary oversight by the judge.

South Africa’s Exchange Control Regulations and ‘Loop Structures’: The Income Tax Implications of the Removal of the Restrictions with Effect from 1 January 2021

South Africa’s Exchange Control Regulations and ‘Loop Structures’: The Income Tax Implications of the Removal of the Restrictions with Effect from 1 January 2021

Author: Annet Wanyana Oguttu

ISSN: 1996-2185
Affiliations: Professor, Department of Taxation and the African Tax Institute in the Faculty of Economic and Management Sciences, University of Pretoria
Source: South African Mercantile Law Journal, Volume 34 Issue 1, 2021, p. 88 – 117
https://doi.org/10.47348/SAMLJ/v34/i1a4

Abstract

This article analyses the implications of the income tax provisions introduced to address the potential tax avoidance that could arise from the lifting of the exchange control restrictions on ‘loop structures’ which were effected from 1 January 2021. Most South Africans and foreign investors do not quite understand the operation and implications of exchange controls due to the complexity of these regulations, and the perception that it is difficult to move money in and out of South Africa. Since the removal of exchange control restrictions on loop structures does not apply to existing unauthorised loop structures, this paper also provides a broader understanding of the operation of exchange controls regarding loop structures. The article first explains the administration of exchange controls and how the restrictions of exchange controls on loop structures have been relaxed over the years, and then it explains the 2021 removal of the restriction on loop structures as well as the amendments to the Income Tax Act to curtail tax avoidance risks.

Case Notes: An Exploratory Analysis of Central Bank Digital Currencies – Some Considerations

Case Notes: An Exploratory Analysis of Central Bank Digital Currencies – Some Considerations

Author: Vivienne Lawack

ISSN: 1996-2185
Affiliations: University of the Western Cape
Source: South African Mercantile Law Journal, Volume 34 Issue 1, 2021, p. 118 – 134
https://doi.org/10.47348/SAMLJ/v34/i1a5

Abstract

The history of central banking began with payment services. Ever since then, payment-related innovation has always been an integral part of central banking (BIS Committee on Payments and Market Infrastructures and Markets Committee Report, ‘Central Bank Digital Currencies(2018) iii). Payments have evolved extensively over the years with the emergence of various technologies, from the development of real-time gross settlement (‘RTGS’) systems, to electronic money and mobile money, to name a few. The arrival of financial technologies or ‘fintech’ has led to cryptocurrencies and now central bank digital currency (‘CBDC’) (on cryptocurrencies, see Reddy & Lawack, ‘An overview of the regulatory developments in South Africa regarding the use of cryptocurrencies’ (2019) 31 SA Merc LJ 1–28; see also Deloitte, ‘Are Central Bank Digital Currencies (CBDCs) the money of tomorrow?’, available at https://www2.deloitte.com/ie/en/pages/financial-services/ articles/central-bank-digital-currencies-money-tomorrow.html, accessed on 3 May 2021). A CBDC represents another potential innovation in the area of an evolving branch of the law called ‘fintech law’. This exploratory analysis provides an overview of the meaning of CBDC and the legal nature of money and CBDC. In addition, it provides a broad overview of some legal implications, policy considerations and regulatory issues. Challenges and risks are also highlighted.

Case Notes: Jurisdictional Quandaries Triggered by a New Variant for Dismissal

Case Notes: Jurisdictional Quandaries Triggered by a New Variant for Dismissal

Author: Tumo Charles Maloka

ISSN: 1996-2185
Affiliations: University of Limpopo
Source: South African Mercantile Law Journal, Volume 34 Issue 1, 2021, p. 135 – 151
https://doi.org/10.47348/SAMLJ/v34/i1a6

Abstract

While the imperative tone of the Constitutional Court (CC) in Steenkamp v Edcon Ltd (2016) 37 ILJ 564 (CC) (Steenkamp I) leaves no doubt that the Labour Relations Act 66 of 1995 (LRA) does not contemplate invalid dismissals or an order declaring a dismissal invalid, or of no force or effect, the extent of the Labour Court’s (LC) jurisdiction to grant appropriate relief declaring dismissals unlawful and invalid because they constitute encroachment of the applicants’ fundamental rights is a vexed question. In Steenkamp I it was decided that when an applicant alleges that a dismissal is unlawful (as opposed to unfair), there is no remedy under the LRA. What this means is that the LC lacks jurisdiction to make any determination of unlawfulness. A multi-layered and complex jurisdictional problem arose in Chubisi v SABC (SOC) Ltd (2021) 42 ILJ 395 (LC) (Chubisi) where the question was whether Ms Chubisi could obtain a declaratory order that the termination of her contract of employment was unconstitutional, unlawful, invalid and of no force and effect. At issue was the termination of employment pursuant to non-recognition of the employee’s contract by the public broadcaster ostensibly to give effect to the Public Protector’s remedial actions. There is no doubt that the remedial actions of the Public Protector have a binding effect, unless, of course, they are reviewed and set aside (EFF v Speaker of the National Assembly 2016 (3) SA 580 (CC); see also Mhango & Dyani-Mhango, ‘The powers of the South African Public Protector: A note on Economic Freedom Fighters v Speaker of the National Assembly’ 2020 African Journal of Legal Studies 1). The court held in Chubisi that the termination of the applicant’s contract of employment by the South African Broadcasting Corporation (SABC) was unlawful, invalid and of no force and effect. The question that arises, therefore, is whether the LC in granting a declaratory order to the effect that the termination of employment was unlawful and invalid misinterpreted and misconstrued the ratio of Steenkamp I. To answer this question, the reasoning of Tlhotlhalemaje J in addressing jurisdictional difficulties requires close scrutiny and analysis. In effect, the resolution of the issues emerging from Chubisi allows for a detailed examination of the import of Steenkamp I. This also provides a platform for examining the fundamental but somewhat tenuous distinction between the jurisdiction and the powers of the LC. In legal parlance, the critical task for the court in any given case is to decide whether the statutory provision on which an applicant relies to found jurisdiction is indeed one that confers jurisdiction. At a more general level, Chubisi implicates corporate governance malaise at the SABC with the unfortunate reality of retrenchments. Therefore, a concise discussion of the corporate governance challenges is merited.

Regterlike herverdelingsdiskresie vir batedeling by egskeiding beleef ’n heropstanding ondanks grondwetlike bedeling téén arbitrêre ontneming sonder vergoeding

Regterlike herverdelingsdiskresie vir batedeling by egskeiding beleef ’n heropstanding ondanks grondwetlike bedeling téén arbitrêre ontneming sonder vergoeding

Author: JC Sonnekus

ISSN: 1996-2207
Affiliations: Professor in Privaatreg, Universiteit van Johannesburg
Source: Tydskrif vir die Suid-Afrikaanse Reg, Issue 4, 2022, p. 603-639
https://doi.org/10.47348/TSAR/2022/i4a1

Abstract

The recognition of and respect for the party autonomy of every legal subject of majority not limited by any personal cognitive handicap is part and parcel of the foundation of an orderly legal community governed by the rule of law. “Making rules of law discretionary or subject to value judgments may be destructive of the rule of law” (Bredenkamp v Standard Bank of South Africa Ltd 2010 4 SA 468 (SCA) 481E).
The discretionary power of a divorce court under section 7(3) of the Divorce Act 70 of 1979 stems from before the current constitutional dispensation. Almost thirty years after the acceptance of the constitutional values of the current system, it was hoped that as time went by, the transitional exception dating to 1984 that exhibits clear elements of arbitrariness would be relied on with declining frequency. There is only a limited number of marriages still in existence concluded before November 1984 with an ante-nuptial contract providing for the proverbial “cold exclusion of all benefits” that could potentially at this late stage in the spouses’ lives be expected to end in the divorce court justifying a reliance on this section. The act limits the discretionary power to explicit conditions: it can be considered only where the divorce concerned a marriage concluded before the commencement of Act 88 of 1984 with an ante-nuptial contract that excluded accrual sharing and any form of asset sharing and in the absence of any agreement at any time between the erstwhile spouses regarding the division of their assets. Provided these conditions are met, the court can order that such assets, or such part of the assets of the other party as the court may deem just, be transferred to the first-mentioned party (s 7(3)).
In all these circumstances a valid ante-nuptial contract exists to which both parties agreed in the presence of a notary public and the applicant in reality never acquired any claim to the other party’s assets. The applicant in addition represented to the other spouse, the notary public and the public at large a claim would never be made to any of the respondent’s assets. “Reasonableness and fairness are not freestanding requirements for the exercise of a contractual right. … Acceptance of the notion that judges can refuse to enforce a contractual provision merely because it offends their personal sense of fairness and equity will give rise to legal and commercial uncertainty” (Potgieter v Potgieter NO 2012 1 SA 637 (SCA) 650F-H).
In Greyling v Minister of Home Affairs ((40023/21) 2022 ZAGPPHC 311 (11 May 2022)) the court regarded the upholding of the claim of the applicant contrary to the explicit misrepresentation by the applicant that she is in agreement with the terms contained in the notarially registered ante-nuptial contract of 1989 governing the marriage, potentially fair. The court ordered the first condition in section 7(3) of Act 70 of 1979, limiting its application to pre-November 1984 marriages, unconstitutional.
This judgment may be popular and in line with what the woman in the street might regard as fair, presumably abandoning the principle of pacta sunt servanda as well as the principles underlying estoppel, but does not bode well for the upholding of the rule of law. “The court does not as yet sit, as under a palm tree, to exercise a general discretion to do what the man in the street, on a general overview of the case, might regard as fair” (Springette v Defoe 1992 2 FLR 388 391).

It is argued that legal certainty will not be enhanced should the constitutional court confirm this judgment. An alleged reliance on principles or policy exclusively based on common law jurisdictions as justification for the recognition of such a discretionary power under these circumstances, without any consideration of the position under civil law systems which indeed share common roots with specifically the South African private law system is once more an example of the demise of our jurisprudence where legal professionals seem to be unable to do proper, relevant and reliable comparative legal research.
Since the husband in the Greyling case did not even oppose the claim of his spouse (all prior to a divorce application) and chose to abide by the court’s decision, it is indeed strange that the court refrained from referring to and recognising that the parties could at any stage since 1989, have relied on section 21(1) of Act 88 of 1984 to have effected a change in their matrimonial property regime. It reeks of misuse of the court process for the court, under these circumstances, to hold as unconstitutional that part of section 7(3) as being the only possible remedy for the claimant against the perceived injustice she would be suffering on divorcing her husband because of their matrimonial property regime, is mind-blowing. The only benefit of not relying on section 21(1) would be to not be bound by the requirements contained in section 21(1)(a-c) – there are sound reasons for the proposed change; sufficient notice of the proposed change has been given to all the creditors of the spouses; and no other person will be prejudiced by the proposed change – and that would constitute misuse. Section 36(1)(e) of the constitution provides that the rights in the bill of rights may be limited but only in terms of a law of general application to the extent that the limitation is reasonable and justifiable in an open and democratic society based on human dignity, equality and freedom (party autonomy), taking into account all relevant factors, including less restrictive means to achieve the purpose. It is clearly not the case in instances like these.

Two horses do not need to be from the same stable: a critical evaluation of the Polo case

Two horses do not need to be from the same stable: a critical evaluation of the Polo case

Author: S Karjiker

ISSN: 1996-2207
Affiliations: Anton Mostert Chair of Intellectual Property Law, Professor in the Department of Mercantile Law, Stellenbosch University
Source: Tydskrif vir die Suid-Afrikaanse Reg, Issue 4, 2022, p. 640-659
https://doi.org/10.47348/TSAR/2022/i4a2

Abstract

Die eerste saak wat riglyne verskaf oor die interpretasie van artikel 10(13) van die Wet op Handelsmerke van 1993 is onlangs in die hoogste hof van appél in LA Group (Pty) Ltd v Stable Brands (Pty) Ltd beslis. Die beslissing het ook ’n mate van duidelikheid verskaf oor die tipe gebruik van ’n handelsmerk wat as aanvaarbare bewys van gebruik beskou sal word wanneer die geldigheid van ’n handelsmerk betwis word op grond van nie-gebruik. Wat die Polo-saak hoogs ongewoon maak, indien nie uniek nie, is dat dit nie die eienaar van die handelsmerk, naamlik Ralph Lauren, was wat sy reputasie in die POLO-merke wou bevestig nie, maar ’n derde party, naamlik die respondent in die saak. Dit is na alle waarskynlikheid die eerste keer dat ’n derde party poog om die reputasie van ’n beweerde buitelandse, bekende, ongeregistreerde handelsmerk te beskerm.
Daar was twee uitsprake wat artikel 10(13) verskillend geïnterpreteer het, en dus tot verskillende gevolgtrekkings oor die feite gekom het. Hierdie artikel sal beide die minderheids- en meerderheidsuitsprake krities bespreek. ’n Aspek van die uitspraak wat kommer wek by beide die minderheids- en meerderheidsuitspraak is die oënskynlik doelbewuste vermyding van enige bespreking van die territorialiteit van handelsmerke, meer spesifiek enige vermelding van artikels 35 en 36(2) van die Wet op Handelsmerke van 1993. Op ’n letterlike interpretasie blyk die minderheid korrek te wees dat artikel 10(13) van wye belang kan wees, maar dit het nie daarin geslaag om duidelikheid te verskaf oor die moontlike wisselwerking tussen artikels 10(13) en 35, aan een kant, en artikel 36(2), aan die ander kant nie. Die versuim om die interpretasie van artikel 10(13) van die Wet op Handelsmerke van 1993 te versoen met artikel 35 (en a 36(2)) kan ernstige kommer oor die omvang van artikel 35 in die toekoms laat ontstaan. Aangesien dit nie die eienaar van die beweerd geskonde handelsmerk was wat die klaer was nie, laat die saak ook kwessies ontstaan oor die bewyslas in die vestiging van die vereiste reputasie in hierdie tipe gevalle.
Gegewe die leerstuk van die territorialiteit van handelsmerke, is ’n sekere vlak van verbruikersverwarring onvermydelik.