The Crown appealed the acquittal of several motor vehicle dealers charged under the Combines Investigation Act with conspiring to lessen competition unduly by adding common freight charges and surcharges to captive automobile parts.
The trial judge found that while agreements existed, they did not unduly lessen competition.
The Court of Appeal quashed the Crown's appeal on the basis that the grounds of appeal involved questions of fact rather than law alone.
The Supreme Court of Canada dismissed the Crown's appeal, agreeing that the trial judge's conclusions were based on factual findings and did not constitute errors of law.