Abandonment of Lochner.

Question 1

a) Nebbia v. New York (1934)(p. 372) -

Answer 1

NY fixed minimum prices for milk.

i) Court held the Regulation did not violate the Due Process Clause of the 14th Amendment ii) Rule: “So far as the requirement of due process is concerned, [a] state is free to adopt whatever economic policy may reasonably be deemed to promote public welfare…if the laws passes are seen to have a reasonable relation to a proper legislative purpose and are neither arbitrary nor discriminatory, the requirements of due process are satisfied.”
(1) The guarantee of due process demands only that the law shall not be unreasonable, arbitrary or capricious and that the means selected shall have a real and substantial relation to the object sought to be attained
(2) Legislature’s determination of how it reaches its conclusion is going to be evaluated on whether the decision is based in arbitrary or discriminatory reasoning.
(a) Example: Wallace (AL case) which mandated a one minute period of silence for meditation in all public schools. That was fine facially, but legislative intent was clear that its purpose was to return prayer to public schools therefore invalid.

Question 2

b) West Coast Hotel Co. v. Parrish (1937)(p. 374) (overruled Adkins)

Answer 2

Court held that the min wage law was constitutional.

(1) Court states the Constitution did not speak of freedom of contract and that liberty was subject to restraints of due process
(2) Employers and employees were not equally ‘free’ in negotiating contracts since employees often were constrained by practical and economic realities. This was found to be especially true in the case of women.

Question 3

United States v. Carolene Products Co (1938)(p. 376)

Answer 3

i) Congress banned the interstate shipment of “filled milk” (milk that was skim and had vegetable oil added). Court held that the law did not violate due process
(1) Takeaway: of course state legislation is a deprivation of liberty, but it has come through the legislative process and is thus not a deprivation of due process.
ii) Rule: Economic regulatory legislation is entitled to a presumption of constitutionality and should be upheld if supported by any rational basis. Footnote 4 listed Exceptions
(1) Footnote 4: announces that in the area of social and economic legislation the court’s policy will be hands-off, EXCEPT in the area of discrete and insular minorities
(a) Therefore, Footnote Four outlines a higher level of judicial scrutiny for legislation that met certain conditions:
iii) On its face violates a provision of the Constitution (facial challenge).
iv) Attempts to distort or rig the political process.
v) Discriminates against minorities, particularly those who lack sufficient numbers or power to seek redress through the political process.
(2) Rational basis Test: this was the first case to use that phrase–> Both Means and Ends must be rational

Question 4

Williamson v. Lee Optical of Oklahoma (1955)(p. 381)

Answer 4

i) OK law clearly favoring optometrists at the expense of opticians (eyeglasses cannot be fitted by an optician without a prescription). Court held did not violate Due Process.
ii) Rule: The day is gone when this court uses the Due Process Clause to strike down state laws, regulation of business and industrial conditions, because they may be unwise, improvident or out of harmony with a particular school of thought.
(1) Rational basis simply means not irrational. It doesn’t have to be right or good.
(2) Gives bench for what is arbitrary and unreasonable: everything is reasonable, rational and non-arbitrary.
(3) Significant deference to legislative determinations in this area of social and economic policy.
iii) Nowadays, actual motivation for the law, pre its passing, is more important. An impermissible actual motivation will trump a plausible situation (see e.g., Wallace).

Question 5

e) Ferguson v. Skrupa (1963)(p. 382) -

Answer 5

Law favoring lawyers in debt negotiations–> Only lawyers can engage in debt negotiation
i) Rule: It is up to the legislatures, not the courts, to decide on the wisdom and utility of legislation.

Question 6

f) Judicial review of what majoritarian legislatures have done is the exception. Review is subject to three important exceptions:

Answer 6

i) Violation of specific constitutional right
ii) Indication that the legislative process itself has broken down
iii) Social and economic legislation that would deny the equal protection of the laws to insular minorities. No presumption of constitutionality and no high degree of deference.