The appellants were charged with conspiracy to prevent or lessen competition unduly, contrary to s. 32(1)(c) of the Combines Investigation Act.
They moved to quash the indictment, arguing that the provision violated s. 7 of the Charter due to vagueness and an unconstitutional mens rea requirement.
The Supreme Court of Canada held that the word 'unduly' is not unconstitutionally vague, as it provides a sufficient basis for legal debate and fair notice.
The Court also held that the mens rea requirement of the offence, which requires subjective intent to enter the agreement and objective fault regarding the undue lessening of competition, satisfies the principles of fundamental justice under s. 7.
