The appellants, farm implement manufacturers, challenged the constitutionality of the Saskatchewan Agricultural Implements Act.
They argued that the Agricultural Implements Board, which awards compensation to farmers for delays in repair parts, exercised powers ultra vires the province under section 96 of the British North America Act.
They also argued that the levy imposed on distributors to fund the compensation amounted to an indirect tax violating section 92(2).
The Supreme Court of Canada dismissed the appeal, holding that the Board's powers were integrated into a valid regulatory scheme and did not conform to a section 96 court.
Furthermore, the levy was characterized as a liquidating premium for an insurance fund rather than a tax.
