What follows is an opinion from the Supreme Court of the United States. Your task is to determine the bases on which the Supreme Court rested its decision with regard to the legal provision that the Court considered in the case. Consider "judicial review (national level)" if the majority determined the constitutionality of some action taken by some unit or official of the federal government, including an interstate compact. Consider "judicial review (state level)" if the majority determined the constitutionality of some action taken by some unit or official of a state or local government. Consider "statutory construction" for cases where the majority interpret a federal statute, treaty, or court rule; if the Court interprets a federal statute governing the powers or jurisdiction of a federal court; if the Court construes a state law as incompatible with a federal law; or if an administrative official interprets a federal statute. Do not consider "statutory construction" where an administrative agency or official acts "pursuant to" a statute, unless the Court interprets the statute to determine if administrative action is proper. Consider "interpretation of administrative regulation or rule, or executive order" if the majority treats federal administrative action in arriving at its decision.Consider "diversity jurisdiction" if the majority said in approximately so many words that under its diversity jurisdiction it is interpreting state law. Consider "federal common law" if the majority indicate that it used a judge-made "doctrine" or "rule; if the Court without more merely specifies the disposition the Court has made of the case and cites one or more of its own previously decided cases unless the citation is qualified by the word "see."; if the case concerns admiralty or maritime law, or some other aspect of the law of nations other than a treaty; if the case concerns the retroactive application of a constitutional provision or a previous decision of the Court; if the case concerns an exclusionary rule, the harmless error rule (though not the statute), the abstention doctrine, comity, res judicata, or collateral estoppel; or if the case concerns a "rule" or "doctrine" that is not specified as related to or connected with a constitutional or statutory provision. Consider "Supreme Court supervision of lower federal or state courts or original jurisdiction" otherwise (i.e., the residual code); for issues pertaining to non-statutorily based Judicial Power topics; for cases arising under the Court's original jurisdiction; in cases in which the Court denied or dismissed the petition for review or where the decision of a lower court is affirmed by a tie vote; or in workers' compensation litigation involving statutory interpretation and, in addition, a discussion of jury determination and/or the sufficiency of the evidence.

Opinion:
ARROYO v. UNITED STATES.
No. 246.
Argued March 2, 1959.
Decided May 4, 1959.
John R. Hally argued the cause for petitioner. With him on the brief was Robert W. Meserve.
Eugene S. Grimm argued the cause for the United States. With him on the brief were Solicitor General Rankin, Assistant Attorney General Anderson and Beatrice Rosenberg.
Mb,. Justice Stewart
delivered .the opinion of the Court.
.. Section 302 (b) of the Labor Management Relations Act of 1947 provides: “(b) It shall be unlawful for any representative of any employees who are employed in an industry affecting commerce to receive or accept, or to agree to receive or accept, from the employer of such employees any money or other thing of value.” Under § 302 (c) of the Act: this broad prohibition is made inapplicable in five situations, one being, “with respect to money or other thing of value paid to a trust fund established by such representative, for the sole and'exclusive benefit of the employees of such employer . . .” pro- . vided that the trust fund meets certain standards specified in that subsection.
The petitioner, a representative of employees in an industry affecting commerce, was convicted in the United States District Court for Puerto Rico of violating § 302 (b) of the' Act by receiving $15,000 from two of their employers. The judgment of conviction was affirmed by the Court of Appeals for the First Circuit. 256 F. 2d 549. Certiorari was granted because the case presents an important question as to the scope of this provision of the Labor Management Relations Act of 1947. 358 U. S. 812.
The facts are substantially undisputed. In 1953 the petitioner was president of a union which represented the employees of two affiliated corporations. In that capacity he negotiated a collective bargaining agreement with the employers. This agreement provided for the establishment of a welfare fund, which, it is unquestioned, met the requisite criteria of § 302 (c) (5) of the Act. It was agreed that the petitioner would be the union repre--sentative on the joint committee which was to administer the fund. After the agreement was signed, the petitioner told the employers’ representative that there was to be a union meeting that evening, and that he wanted to exhibit the welfare fund checks to the union members. Accordingly, the petitioner was given two checks for $7,500. Attached vouchers identified the checks as the employers’ contributions to the welfare fund.
Instead of subsequently depositing the checks in the existing welfare- fund bank account, however, the petitioner used them to opén an account in the name of the fund in another bank. A few days thereafter, he gave the bank a purported resolution from the union’s board of directors authorizing withdrawals from this account upon his signature alone. As soon as the employers learned what had happened, they attempted to secure performance of the agreement for joint administration of the fund. Over a period of several months, however, the petitioner used the money for his own personal purposes and, after transferring the funds to another account, for nonwelfare union purposes as well.
The Government does not maintain that embezzlement by an employee representative from an employer-financed welfare fund would violate the federal statute under which the petitioner was convicted. It contends, however, that in this case the jury could properly find that the petitioner when he accepted the two checks intended to use the funds for his personal purposes, and that he was therefore guilty not of embezzlement, but of conduct amounting to larceny, by trick. We agree that the evidence could properly support an inference that the petitioner’s purpose from the outset was to appropriate the two checks for his own usé. We cannot agree, however, that this conduct violated § 302 (b) of the Act.
Section 302 (b) is a reciprocal of § 302 (a), applicable to employers, which provides that “(a) It shall be unlawful for any employer to pay or deliver, or to agree to pay or deliver, any money or other thing of value to any representative of any of his employees who are employed in an industry affecting commerce.” The good faith of the employers in delivering the two checks to the petitioner— their intent that the money go to the welfare fund created by .the collective bargaining agreement — was not questioned throughout the trial and is not questioned here. The sole purpose of the delivery of the checks, therefore, was /to make a lawful payment. What the petitioner received were checks “paid to a trust fund.” The transaction, therefore, was within the precise language of § 302 (c), and thus was not a violation of § 302 (b).
This is not to say that the statute requires mutuality of guilt for the conviction of éither the employer or the representative of employees. An employer might be guilty under subsection (a) if he paid money to a representative of employees even though the latter had no .intention of accepting. Cf. Lunsford v. United States, 200 F. 2d 237; Schneider v. United States, 192 F. 2d 498. A representative might be guilty if he coerced payments from an innocent and unwilling employer. Cf. United States v. Waldin, 149 F. Supp. 912, aff’d 253 F. 2d 551. Both would be guilty if the payment were ostensibly made for one of the lawful purposes’specified in § 302 (c) if both knew that such a purpose, was merely a sham.
The present case, however, is not an analogue to any of those situations. The checks were drawn by the employers and delivered to the petitioner as payment to a union welfare- fund. Their receipt by him,-therefore, was not a violation of the federal statute, whether his intent to misappropriate existed at the time of receipt or was formed later.
We cpnstrue a criminal statute. “It is the legislature, not the Court, which is to define a crime, and ordain its punishment.” United States v. Wiltberger, 5 Wheat. 76, 95; United States v. Halseth, 342 U. S. 277; Krichman v. United States, 256 U. S. 363. We are mindful, :'of course, that, “though penal laws are to be construed strictly, they are not to be construed so strictly as to defeat the obvious intention of the legislature.” United States v. Wiltberger, supra, at 95. As Mr. Justice Holmes put it, “Wp* agree to all the generalities about not supplying criminal laws-with what they omit, but there is no canon against using common sense in construing laws as saying, what they obviously mean.” Roschen v. Ward, 279 U. S. 337, 339.
An examination o.f the legislative history confirms that á literal construction of this-statute does no violence to common sense') .When Congress enacted § 302 its purpose was not .to assist the States in punishing criminal.conduct traditionally within their jurisdiction, but to deal with problems peculiar to collective bargaining. The provision was enacted as part of a comprehensive revision of federal labor policy in the light of experience acquired during the years following passage of the Wagner Act, .and was aimed at practices which Congress considered inimical to the integrity of the collective bargaining process.
Throughout the. debates in the Seventy-ninth and Eightieth Congresses there was not the slightest indication that § 302 was intended to duplicate state criminal laws. Those members of Congress who supported the amendment were concerned with corruption of collective bargaining through bribery of employee representatives by employers, with extortion by employee representatives, and with the possible abuse by union officers of the power which they might achieve if welfare funds were left to their sole control. Congressional attention was focussed particularly upon the latter problem because of the demands which had then recently been made by a large international union for the establishment of a welfare fund to be financed by employers’ contributions and administered exclusively by union officials. See United States v. Ryan, 350 U. S. 299.
Congress believed that if welfare funds were established which did not define with specificity the benefits payable thereunder, a substantial danger existed' that such funds might be employed to perpetuate control of .union officers, for political purposes,' or even for personal gain. See 92 Cong. Rec. 4892-4894, 4899, 5181, 5345-5346; S. Rep.. No. 105, 80th Cong., 1st Sess., at 52; 93 Cong; Rec. 4678, 4746-4747.' To remove these dangers, specific standards were established to assure that welfare funds would be established only for purposes which Congress' considered proper and expended-only for the purposes for which they were established. See Cox, Some Aspects of the Labor Management Relations Act, 1947, 61 Harv. L. Rev¡ 274, 290. Continuing compliance with these standards in the administration of welfare funds was made explicitly enforceable in federal district courts by civil proceedings under § 302 (e). The legislative history is devoid of any suggestion that defalcating trustees were to be held accountable under federal law, except by way of the injunctive remedy provided in that subsection.
Without doubt the petitioner’s conduct was reprehensible and immoral. It can be assumed also that he offended local criminal law. But, for the reasons stated, we hold that he did not criminally violate § 302 (b) of the Labor Management Relations Act of 1947.
Reversed.
The relevant text of §302 (c), as it appears in 29 U. S. C. § 186 (e) is .as follows: “(c) The provisions of this section shall not be applicable ... (5) with respect to money or other thing of value paid to a trust fund established by such representative, for the sole and exclusive benefit of the employees of such employer, and their families and dependents (or of such employees, families, and dependents jointly with the employees of other employers making similar payments, and their families and dependents): Provided, That (A) such payments are held in trust for the purpose of paying, either fronrprineipal or income or both, for the benefit of employees, their families and dependents, for medical or hospital care, pensions on- retirement or death of .employees, compensation for injuries or illness resulting from occupational activity or insurance to provide any of the foregoing, or unemployment benefits or life insurance, disability and sickness insurance, ór accident insurance; (B) the detailed basis on which such payments are to be made is specified in a .written agreement with the employer, and employees and employers are equally represented in the administration of such fund, together with such neutral persons as the representatives of the employers and the representatives of the employees may agree upon and in the event the employer and employee groups deadlock on the administration of such fund and there are no neutral persons empowered to break such deadlock, such agreement provides that the two groups shall agree on an impartial umpire to decide such dispute, or in event of their failure to agree within a reasonable length of time, an impartial umpire to decide such dispute shall, on petition of either group, be appointed by the district court of the United States for the district where the trust fund has its principal office, and shall also contain provision for an annual audit of the trust fund, a statement of the results of which shall be available for inspection by interested persons at the principal office of the trust fund and at such other places as may be designated in such written agreement; and (C) such payments as are intended to be used for the purpose of providing pensions or annuities for employees are made to a separate trust which provides that the funds held therein cannot be used for any purpose other than paying such'pensions or annuities.”
Sentence was imposed under authority of § 302 (d) of the Act, which provides: “(d) Any person who willfully violates any of the provisions of this section shall, upon conviction' thereof, be guilty of a misdemeanor and be subject to a fine of not more than $10,000 or to imprisonment for not more than one year, or both. . .
The fund was to be-identical in amount and purpose to a weliare fund which had been created in 1952 under a previous collective bargaining agreement. The petitioner had also been the union representative on the committee which administered that fund.
Compare S. 3974, § 109 (a), 85th Cong., 2d Sess., the so-called Kennedy-Ives bill, which would have provided criminal penalties of up to five years’ imprisonment and a fine of $10,000 for “Any person who embezzles, steals, or unlawfully and willfully abstracts or .converts to his own use or the use of another any of the moneys, funds, securities, property, or other assets of an organization which is exempt from taxation under section 501 (a) of the Internal Revenue Code of 1954 of which he is an officer or by whom he is employed directly or indirectly . . .
In argument to the trial court, government counsel made the following statement: “The employer in this case, I would like to say, complied with the law. The employer set up a welfare fund in accordance with the law, and in accordance with the testimony by Mr. Goyco and other documentary evidence, the letter to the Banco de Ponce, the employer did all it could to make compliance with the law, because there could be a lawful welfare fund, so that’s as far as the employer is concerned.”
Section 302 had its origin in an amendment to the Case bill, H. R. 4908, 79th Cong., 2d Sess., proposed by Senator Byrd, 92 Cong. Rec. 4809, which prohibited payment by an employer, or receipt by a representative, of any money or other thing of value unless the payment was for wages or for union dues withheld by the employer under a checkoff agreement. After several modifications, including one substantially similar to subsection (c) (5) which was proposed by Senators Taft and Ball, the amendment was agreed to by the Senate, 92 Cong. Rec. 5521-5522, and the Case bill passed. 92 Cong. Rec. 5739. The House accepted the Senate amendments, 92 Cong. Rec. 5946, but the President vetoed the bill, 92 Cong. Rec. 6674^6678, and it failed of passage over his veto. 92 Cong. Rec. 6678.
In the Eightieth Congress the Senate Committee on Labor and Public Welfare reported out an original bill, S. 1126, containing no reference to payments by an employer to a representative other than that which had been contained in § 8 (2) of the Wagner Act. A minority of the Committee, including Senators Taft and Ball, filed their “Supplemental Views” in which they stated their intention to offer from the floor “an amendment reinserting in the bill, a provision regarding so-called welfare funds similar to the section in the Case' bill approved by the Senate at the last session.” S. Rep. No. 105, 80th Cong., 1st Sess., p. 52. The amendment was adopted by the Senate, 93 Cong. Rec. 4754, accepted by the Conference Committee, H. R. Rep. No. 510, 80th Cong., 1st Sess., pp. 24-25, 67, and enacted as § 302 of the Labor Management Relations Act.
In explaining the necessity for adoption of the amendment which he offered to the Case bill, Senator Byrd stated: “My amendment would prevent an employer from paying a royalty to the representative of a union. He would be clearly liable, under the provisions of this amendment, if he paid a royalty or other'money to the representative of a labor union, the purpose mf which was to bribe that representative.” 92 Cong. Rec. 4893. See also 92 Cong. Rec. 5428; 93 Cong. Rec. 4678.
Senator Taft, in speaking for the amendment to S. 1126 which had previously been proposed on the floor of the Senate by Senator Ball, stated that it was intended to deal with “extortion or a case where the union representative is shakihg down the employer.” 93 Cong. Rec. 4746.
“(e) The district courts of the United States and the United States courts of the Territories and possessions shall have jurisdiction, for cause shown, and subject to the provisions of section 381 of Title 28 (relating to notice to opposite party) to restrain violations of this section, without regard to the provisions of section 17 of Title 15 and section 52 of this title, and the provisions of sections 101-110 and 113-115 of this title.” 29 U. S. C. § 186 (e).
“(c) The provisions of this section shall not be applicable . . . (5) with respect to money or other thing of value paid to a trust fund established by such representative, for the sole and exclusive benefit of the employees of such employer, and their families and dependents (or of such employees, families, and dependents jointly with the employees of other employers making similar payments, and their families and dependents): Provided, That (A) such payments are held in trust for the purpose of paying, either from principal or income or both, for the benefit of employees, their families and dependents, for medical or hospital care, pensions on retirement or death of employees, compensation for injuries or illness resulting from occupational activity or insurance to provide any of the foregoing, or unemployment benefits or life insurance, disability and sickness insurance, or 'accident insurance; (B) the detailed basis on which such payments are to be made is specified in a written agreement with the employer, and employees and employers are equally represented in the administration of such fund, together with such neutral persons as the representatives of the employers and the representatives of the employees may agree/upon and in the event the employer and employee groups deadlock on the administration of such fund and there are no neutral persons empowered to break such deadlock, such agreement provides that the two groups shall agree on an impartial umpire to decide such dispute, or in the event of their failure .to agree within a' reasonable length of time, an impartial umpire to decide such dispute shall, on petition of either group, be appointed by the district court of the United States for the district where the trust fund has its principal office, and shall also contain provisions for an annual audit of the trust fund, a statement of the results of which shall be available for inspection by interested persons at the principal office of the trust fund and at such other places as may be designated in such written agreement; and (C) such payments as are intended to be used for the purpose of providing pensions or annuities for employees are made to a separate trust which provides that the funds held therein cannot be used for any purpose other than paying such pensions or annuities.”

Question: What is the basis of the Supreme Court's decision?

Choices:
judicial review (national level)
judicial review (state level)
Supreme Court supervision of lower federal or state courts or original jurisdiction
statutory construction
interpretation of administrative regulation or rule, or executive order
diversity jurisdiction
federal common law

Answer: 3