Sunday, May 12, 2013

A.L.A. Schechter Poultry Corp. v. United States case brief

A.L.A. Schechter Poultry Corp. v. United States case brief
295 U.S. 495, 55 S. Ct. 837, 79 L. Ed. 1570 (1935)

CASE SYNOPSIS: Certiorari was granted to review a decision of the Circuit Court of Appeals for the Second Circuit, which sustained defendant's conviction for conspiracy and for a violation of the Live Poultry Code, promulgated under § 3 of the National Industrial Recovery Act, 15 U.S.C.S. § 703.

FACTS: Defendant, a corporation, was convicted of violating the Live Poultry Code, which was promulgated under § 3 of the National Industrial Recovery Act, 15 U.S.C.S. § 703. The Act authorized the President to approve codes of fair competition, and the Code was approved by an executive order. The Supreme Court reversed the judgment of the appellate court, which sustained the conviction. The Court held the code provisions invalid because they improperly delegated legislative power to the Executive Branch and because the provisions regarding minimum wages and maximum hours attempted to regulate intrastate transactions that affected interstate commerce only indirectly. The Court found that the Act prescribed no constitutional method or procedure for ascertaining unfair methods of competition. Instead of prescribing rules of conduct, the Act authorized the making of codes to prescribe them. The discretion of the President in approving or prescribing codes was virtually unfettered and, thus, the code-making authority conferred was an unconstitutional delegation of legislative power.

CONCLUSION: The Court reversed the judgment that affirmed petitioner's conviction under the Live Poultry Code, promulgated under National Industrial Recovery Act, where the Code was invalid because it attempted an unconstitutional delegation of legislative power and attempted regulation of intrastate transactions that affected interstate commerce only indirectly. The Court affirmed the reversal of petitioner's conviction for wage and hour violations.

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