Is an eBay business a retail premises?

April 27, 2011

Property / leasing

A colleague has just referred me to an interesting decision by Judge Ginnane in the County Court on whether a lease for premises in which an eBay business is conducted is a retail premises lease under the Retail Leases Act 2003 (Vic).

The Court concluded for various reasons that it could not be satisfied that the premises were retail premises, but left open the possibility of an eBay business falling within the ambit of the Act, saying:

[101]  I am prepared to assume that a sale by eBay may be properly characterised as a retail sale. The definition of retail premises is a wide one. The authorities suggest that it is unnecessary, in order for retail activity to occur, that there be “direct personal interface” between the retailer and customer.7 A retail sale is a sale to an ultimate consumer, as opposed to sales to the trade for the purpose of resale. …

Given the erosion of traditional retail sales by online businesses in recent years, this question may be significant.

The decision is Segment Woods Pty Ltd v Brockridge Pty Ltd & Anor [2009] VCC 1531, and a copy is available here.

Thanks to Stuart Monotti from Harwood Andrews for referring me to this case.

About Sam Hopper

Sam is a property and insolvency barrister.

View all posts by Sam Hopper

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: