In 1931, the case of Schechter Poultry Corp. v. United States marked a milestone in antitrust law. This case was heard by the U.S. Supreme Court and eventually declared many of the new codes of the newly established National Industrial Recovery Act (NIRA) were unconstitutional. This decision has become a benchmark in terms of antitrust law and has become a reference point for countless antitrust cases that have followed in its wake.
The Schechter Poultry Corp. v. United States case began with poultry wholesaler Schechter Poultry Corp. refusing to comply with the National Industrial Recovery Act set forth by President Franklin Delano Roosevelt. This Act meant that, upon penalty of fines and imprisonment, Schechter was to abide by certain codes and regulations about the production and sale of its goods. Schechter argued that these codes exceeded the constitutional authority of the federal government, and upon their refusal to comply, they were fined by the government.
The Supreme Court weighed the case and ultimately ruled in favor of the Schechter Corp., ultimately declaring that the NIRA codes exceeded the government’s powers of delegation and violated the 10th Amendment. This decision has been seen as a milestone in antitrust law ever since.
The Relevance of Schechter Poultry Corp. Today
Although this landmark case occurred in 1931, its legacy and importance can still be felt in the present day. The decision in Schechter Poultry Corp. helped secure certain rights for businesses, and its influence is still seen every time antitrust law is addressed. It is a reminder of our constitutional rights, and that the government must respect them in all areas of business and economic activity.
Schechter Poultry Corp. v United States is an important reminder to businesses that the U.S. constitution upholds individual liberty and the right to participate in the economy with minimal government interference. This case provides a legal precedent for businesses to challenge the unfair practices of market manipulation and violations of fundamental rights.
Schechter Poultry Corp. v United States is a timeless example of the government overreaching its delegated powers and of respect for individual economic liberties. It is a landmark case in antitrust law, and its importance and legacy live on today.