(1) The mutual recognition principle is subject to the exceptions specified in this section.
(2) The first exception is that the principle does not affect the operation of any laws of the second State that regulate the manner of the sale of goods in the second State or the manner in which sellers conduct or are required to conduct their business in the second State (including laws set out in the examples below), so long as those laws apply equally to goods produced in or imported into the second State.
Examples : Laws relating to the following:
(a) the contractual aspects of the sale of goods;
(b) the registration of sellers or other persons carrying on occupations;
(c) the requirement for business franchise licences;
(d) the persons to whom goods may or may not be sold;
(e) the circumstances in which goods may or may not be sold.
(3) The second exception is that the principle does not affect the operation of any laws of the second State regarding the transportation, storage or handling of goods within the State, so long as:
(a) those laws apply equally to goods produced in or imported into the second State; and
(b) those laws are directed at matters affecting health and safety of persons in the second State or at preventing, minimising or regulating environmental pollution (including air, water, noise or soil pollution) in the second State.
(4) The third exception is that the principle does not affect the operation of any laws of the second State regarding the inspection of goods within the State, so long as:
(a) inspection or the requirement for inspection is not a prerequisite to the sale of the goods in the second State; and
(b) those laws apply equally to goods produced in or imported into the second State; and
(c) those laws are directed at matters affecting the health and safety of persons in the second State or at preventing, minimising or regulating environmental pollution (including air, water, noise or soil pollution) in the second State.