Reference re Farm Products Marketing Act
Encyclopedia
Reference Re Farm Products Marketing Act, 1957 S.C.R. 198 is a leading Supreme Court of Canada
decision on the Trade and Commerce
power allocated to the federal government under section 91(2) of the Constitution Act, 1867. The Court held that the Trade and Commerce power applied not just to trade but also to the flow of goods.
The Ontario Farm Products Marketing Act was challenged as ultra vires the province. The Court split four to four on whether the law was valid.
Chief Justice Fauteux, held that the Act had an effect on inter-provincial trade and so it could not be upheld as a "matter of a local nature" under section 92 (16) of the Constitution Act, 1867. Rather, the Act concerned the "flow of goods" which was part of the Trade power. Rand J., in a concurring opinion, added that the demarcation between trade, production, and manufacturing must be considered. “That demarcation must observe this rule, that if in a trade activity, including manufacture or production, there is involved a matter of extra-provincial interest or concern its regulation thereafter in the aspect of trade is by that fact put beyond Provincial power.” Consequently, some intra-provincial trade can be regulated federally as well as inter-provincial trade.
Supreme Court of Canada
The Supreme Court of Canada is the highest court of Canada and is the final court of appeals in the Canadian justice system. The court grants permission to between 40 and 75 litigants each year to appeal decisions rendered by provincial, territorial and federal appellate courts, and its decisions...
decision on the Trade and Commerce
Canadian federalism
Canada is a federation with two distinct jurisdictions of political authority: the country-wide federal government and the ten regionally-based provincial governments. It also has three territorial governments in the far north, though these are subject to the federal government...
power allocated to the federal government under section 91(2) of the Constitution Act, 1867. The Court held that the Trade and Commerce power applied not just to trade but also to the flow of goods.
The Ontario Farm Products Marketing Act was challenged as ultra vires the province. The Court split four to four on whether the law was valid.
Chief Justice Fauteux, held that the Act had an effect on inter-provincial trade and so it could not be upheld as a "matter of a local nature" under section 92 (16) of the Constitution Act, 1867. Rather, the Act concerned the "flow of goods" which was part of the Trade power. Rand J., in a concurring opinion, added that the demarcation between trade, production, and manufacturing must be considered. “That demarcation must observe this rule, that if in a trade activity, including manufacture or production, there is involved a matter of extra-provincial interest or concern its regulation thereafter in the aspect of trade is by that fact put beyond Provincial power.” Consequently, some intra-provincial trade can be regulated federally as well as inter-provincial trade.