A supplier's refusal to supply goods while debts are outstanding, where the supplier has contractually reserved the right to defer delivery, does not constitute unconscionable conduct under s 51AC of the Trade Practices Act 1974 (Cth), even where the refusal contributes to the debtor's financial distress. A supplier is entitled to require adequate assurance of payment and is not obliged to accept proposed payment arrangements that involve commercial risk or fail to address existing arrears. The standard of unconscionability under s 51AC requires conduct reaching a high level of moral impropriety, though Basten JA questioned whether the 'moral obloquy' formulation is the most appropriate gloss on the statutory term.
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