Background
During the 1970s General Motors (GM) sold vehicles to both City National Leasing (CNL) and to CNL's competitors. It was discovered that GM was giving CNL's competitor a better interest rate than CNL, which violated the federal Combines Investigation Act. In its defence GM argued that the provision in the Act that created the civil cause of action was outside the legislative competence of the federal government.
The motions judge found that the provision was ultra vires the federal government and struck it out. The Court of Appeal overturned the decision.
The issues before the Supreme Court were
- whether the Combines Investigation Act, either in whole or in part, was intra vires Parliament under s. 91(2) of the Constitution Act, 1867, and
- whether s. 31.1 was within the legislative competence of Parliament.
Read more about this topic: General Motors Of Canada Ltd. V. City National Leasing
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