the Commonwealth Parliament enacted the Chocolate

(Sugar Reduction) Act 2023 (Cth) (the 'Chocolate Act').

Section 5 of the Chocolate Act establishes offences relating to the manufacture, distribution, sale and

purchase of chocolate, as follows:

Section 5

(1) It is an offence to manufacture, distribute or sell chocolate containing 20g or more of sugar per

100g.

Penalty: 500 units

(2) It is an offence to purchase or consume chocolate containing 20g or more of sugar per 100g.

Penalty: 50 units.

Section 6

The prohibition in s 5(1) applies to:

a) Foreign, and trading and financial corporations;

b) Employees of foreign, and trading and financial corporations; and

c) Persons in a contractual relationship with a foreign, trading or financial corporation.

[Note: 1 penalty unit = $100]

B. Alfred Haigh is employed by the Ferrero Chocolate Corporation ('Ferrero') which

manufactures and sells luxury chocolates. Alfred has an arrangement with his manager

whereby he is allowed to sell up to 20kg p/week of Ferrero's 'seconds' (ie perfectly edible but

irregular shaped chocolates) with all proceeds going to a local charity. Alfred collects these

chocolates at the end of his Friday shift and sells them over the weekend. However, Ferrero

now has a storeroom full of perfect chocolate that exceeds the sugar limits in the legislation

which it can therefore no longer sell.

Advise Alfred whether his arrangement with Ferrero could be extended to include the non-

compliant chocolate. (with referencing the answer regarding the corporations power, core and incidental scope of power).

C. Koko Brown is a freelance graphic artist who has a contract to design the chocolate wrappers

for Ferrero. In her spare time, Koko makes handmade chocolates and sells them at the local

farmers market. Koko has a loyal clientele who regularly buy her chocolates, thus providing

Koko with a steady side income to supplement her freelance graphic art business. The biggest

sellers are the milk chocolate truffles, containing over 50g of sugar per 100g, with dark

chocolate truffles coming in a close second (containing over 30% sugar per 100g). An

inspector recently came to the farmers market and told Koko that she would have to reduce

the level of sugar in her chocolates to comply with the new legislation.

Advise Koko whether s 5(1) applies to her. with referencing the answer regarding the corporations power, core and incidental scope of power).