Legal Document

343 U.S. 470 72 Supreme Court Reporter 800 96 L.Ed. 1081 FEDERAL TRADE COMMISSIONv.RUBEROID CO. RUBEROID versus COMMISSION. Nos. 448, 504. Argued March 31, April 1, 1952. Decided May 26, [Syllabus from pages 470-471 intentionally omitted] Mr. James Cassedy, Washington, D.C., for Federal Trade commission. Cyrus Austin, New York City, Ruberiod company Justice CLARK delivered the opinion of Court. 1 In this case we granted cross-petitions certiorari to review decree Appeals affirming, but refusing enforce, a cease and desist order issued by Commission Ruberoid 2 is one nation's largest manufacturers asphalt asbestos roofing materials allied products. The found that Ruberoid, in number specific instances, had discriminated among customers prices charged them materials. Further finding effect those discriminations 'may be substantially lessen competition line commerce which (those customers) are engaged, injure, destroy, or prevent between customers),'1 held were violations § 2(a) Clayton Act, as amended Robinson-Patman Act.2 46 F.T.C. 379. was ordered to: 3 '(C)ease discriminating price: 4 'By selling such products like grade quality any purchaser at lower than other purchasers who fact compete with favored resale distribution products.'3 5 Upon Ruberoid's petition review, affirmed enforcement order. Cir., 189 Reporter, 2nd Series 893. However, on rehearing, its mandate strike part directed enforcement. 191 294. We questions, important administration scope orders. 342 917, 368. 6 first consider contentions mainly attacks upon breadth Orders not intended impose criminal punishment exact compensatory damages past acts, illegal practices future. carrying out function limited prohibiting practice precise form it have existed past. If attain objectives Congress envisioned, cannot required confine road block narrow lane transgressor has traveled; must allowed effectively close all roads prohibited goal, so may by-passed impunity.4 Moreover, '(t) he wide discretion choice remedy deemed adequate cope unlawful practices' disclosed. Jacob Siegel Comm., 1946, 327 608, 611, 66 758, 759, 90 888. placed primary responsibility fashioning orders Commission, expected exercise special competence formulating remedies deal problems general sphere competitive practices.5 Therefore said 'the courts will interfere except where selected no reasonable relation exist.' Id., page 613, 760. 7 light these principles, examine objections case. First, argued went too far price differentials competing purchasers, although only 5% Or more found. But very small differences material factors customers, offered evidence contrary. state record limit prohibition differential shown been adopted statute.6 absence indication lesser discrimination might affect there need afford an escape clause through seller frustrate whole purpose proceedings limiting future something less 5%.7 8 classified wholesalers, retailers, contractors applicators.8 sales retailers applicators. insufficient establish such. contends should similarly ample classification did follow real functional differences. Thus some designated 'wholesalers' extra discounts competed And operated both wholesalers So finding, Commissioner disregarded ambiguous labels, used cloak discriminatory stated terms 'purchasers compete.' stated, think understandable, reasonably related facts evidence, within broad possesses determining remedies. 9 Finally, complains enjoins lawful acts failing prohibitions merely make allowance cost manufacture, sale delivery, mede good faith meet equally low competitor. Differences satisfying either tests permitted Act.9 It radically broadened prohibitory powers failure include provisos do because necessarily implicit every under authority just if set extenso. Although previous included provisos, they gained force inclusion. Their preclude differentiating new situation involving different circumstances can justify accordance statutory provisos. Nor seek modification each time, example, competitor's reduction requires lose fleeting opportunity. On hand, implied inclusion does shift burden proof justification.10 Neither recognition availability defenses allow relitigate issues already settled prior before resulted courts. questions justification, claimed basis relating costs meeting competition, once finally decided against seller, again interpose same defense similar when seeks show violated.11 result follows supporting defense, produced proceedings, then available seller. short contesting contempt plead constituting justification opportunity present. 10 sole question presented Commission's concerns court's holding, dissent, could 'obtain directing Act showing violation occurred imminent'.12 pertinent parts provide: 11 'If person (subject order) fails neglects obey commission * while effect, apply circuit court appeals United States *. (T)he shall power enter modifying, setting aside 12 'Any party obtain filing written praying jurisdiction affirm, aside, modify application 13 'The exclusive.'13 14 argues, first, provision authorizing 'if order' 'a Congressional directive go into enforcement,' amount prerequisite granting enforcement.14 subscribe argument, disregards unequivocal language statute consistent interpretation over thirty-eight-year period existence.15 Congress, 1938, reviewing now plainly required, affirmance, enforce based Act.16 repeatedly sought amendment provisions involved case.17 achieve reinterpretation face Congress' pass bills thus brought it.18 Effective handicapped present provisions, policy Congress. 15 Alternatively, argues that, even though disobedience condition comes affected party. This argument begins difference paragraphs providing instance respective parties, consideration section convinces us most ambiguous. applies cross-petition after motion subject well makes original application.19 There reason why complied order, reviewed modified worse position right. doubt requirement depend entirely goes first. 16 Affirmed. 17 BLACK concurs judgment Court, thinks expressly allowances sale, made 18 FRANKFURTER, having heard owing illness, took disposition 19 DOUGLAS dissents denial 20 JACKSON, dissenting Number 21 July 1943, instituted itself proceeding petitioner charge subsection (a) approved June 19, 1936, Code KF62 13(a), Annotated KF65 U5 13(a). 22 Several proved admitted 1941. No serious opposition discriminations, object being types never begun asked forbid statute. 23 refused 'unnecessary assure respondent (petition here) full legal rights.' also rejected recommended Examiner substituted sweeping 'cease By products.' wrote gave cryptic reasons findings.1 24 attacked indeterminateness Appeals, however, affirmed, saying: 25 'We sympathize petitioner's realize difficulties conducting business prohibitions. Nevertheless convinced cause trouble itself, vague wording translated assurance detailed guiding yardsticks.'2 26 appraisal almost ten years litigation exposes grave deficiency administrative process applied. Admitting 'vague wording,' implementing be. & N Dec. Immigration Nationality Decisions outcome acceptable. would rectify advance process, become indispensable adjunct modern government, returning perform useful administering admittedly complicated Act. 27 correct, mean intercession nothing define duties liabilities sanctions. declared, comprehensive terms, duty discriminate provided prosecution That, course, task meaning law facts. imposes event proceeding. derived 'guiding yardsticks' contrary, ultimate further confused proceeding, winds up literally forbids what allows adds difficulty eventual sanctions necessary. 28 unsound here isolated example malaise scheme, tolerance troubling, wrong. decision encourage deterioration symptomatic invites invasion independent agency field executive agencies. Other symptoms, betokening basic confusion, numerous occasions findings inadequate purposes recent instances government appears fighting another part—usually wholly executive-controlled attacking agencies—the Departments Agriculture, Secretary Agriculture (jurisdiction noted 1042), Justice, Interstate Commerce 337 426, 69 1410, 93 1451, Department Maritime Far East Conference States, 570, 492, Interior Power ex rel. Chapman (certiorari 941, 1034). Abstract propositions solve concrete cases, but, confusion responsible particular result, resort fundamental principles determine our system help illuminate shortcomings result. I. 29 many regulatory measures, sketches outline contemplates completion clarification 30 context. Indeed, seems thought beyond understanding. commanded done omitted unconditionally, conduct omission per se punishable. commercial three conditions survive test five To overlapping conflicting policies govern involves inquiry grades qualities goods, their economic effects interstate commerce, tend create monopoly, manufacturing delivery price, services facilities competitors. 31 exemplifies complexity lawmaking common technique legislation. typical possible lines policy. legislate generalities delegate final choices considerable latitude conform legislative policies. 32 large importance expertise play reducing evidenced confided single body industries dispersed four agencies besides Commission.3 33 A violate without guilty knowledge intent unwittingly himself neither nor call sanctions; enforceable behalf injunction until sought, Appeals. Only carries public sanctions,4 punishable contempt. 34 refrained imposition unconditional directly civil court, Sherman Anti-Trust Wilson Tariff 1894.5 carefully kept cases shielded violator penalty tribunal hands down definitive accented participation specified transactions 'to his knowledge' judicially punishable.6 35 clarify proper legislation unfinished complete ready application.7 sense bring making law. able willing finish prescribing positive right eliminating policies, expediences guides, leaves rounding command another, smaller specialized agency. 36 characteristic undertake declare end rather undertakes control processes administrator's mind reach results. Because predetermine weight presence considerations influence decisions regulating business, attempts indicate generally outside limits matters about administrator confines compulsion 37 Such confer parties interest ought correct one, gives rights duties. Montana-Dakota Utilities Northwestern Public Service Co., 341 246, 251, 71 692, 695, 95 912; Phelps Dodge Corporation National Labor Relations Board, 313 177, 194, 195, 61 845, 852, 853, 85 1271. 38 represents inchoate lay rules immediate compliance pain judicial process. intervention mature perfect effective rule coercion. statute, individual case, additional last touch selection legislator supply. grant unexpended weigh legislature wants weighed, reduce abstract net remainder Then, only, completed expression will, sort secondary legislation, enforced II. 39 constitutional independence presupposes completing 40 rise bodies probably significant trend century perhaps values today courts, apart. They consequences personal rights. Cf. Spector, 169, 591. veritable fourth branch Government, deranged three-branch theories much concept dimension unsettles three-dimensional thinking. 41 Courts differed assigning place seemingly necessary system. Administrative called quasi-legislative, quasi-executive quasi-judicial, occasion validate functions separation-of-powers scheme Constitution. mere retreat qualifying 'quasi' confession recognized classifications broken down, smooth cover draw use counterpane conceal disordered bed. 42 itself. doctrine exercises discretions perfecting escaped domination hand exempted measure other. literal faithfully executed, exclusively President control. Myers 272 52, 47 21, 160; Const., Article II, §§ 3. saved recourse 'In respect 'unfair methods competition,' say, filling details embodied standard, quasi legislatively judicially.' Humphrey's Executor 295 602, 628, 55 869, 874, 79 1611. 43 When enacts aspects executed law, yielded agencies, determination necessary.8 Examples creation obligations patent, revenue customs laws. yet clear elements therefore withdrawn department tribunals. delegated promulgate own charter, rationale placing gone. III. 44 quasi-legislative blank spaces reconciling standards passed assumed them. 45 That work translating escapes character axiom Court's herein shows. delegating leave empty meaning. look see whether prescribed reference, properly derives too, findings, reconsider learn entitled about—or least about—all 'detailed becomes courts.9 agency, 'quasi-legislative' armory, larger immunity purely tax patent exhausted Acts themselves, mental operation officer. facts, results obligation pay tax, patent. deduce manner Hence, proceeds deference court. 48 Very different, decision. liability determined concretization supra, 695; supra. 49 decide reached. concerned, range correct. decision, it, excludes (in theory, least) policy-making element, rightfully influences extend. Since difficult stopped quasi-judicial begun, entire penetrating scrutiny. Hope Natural Gas 320 591, 64 281, 88 333. 50 better equipped handle empowered proceedings. plain enterprises effective, insist performed IV. 51 remanded circumscribed 52 Returning find served whatever. administratively convenient blanket industry bulk—an undiscriminating discrimination. give precision concreteness really promulgates inaccurate partial paraphrase indeterminate generalities. Instead duty, confounds ordering permits do. 53 below defer solution inherent theory offends time enough background means. While justice, am greatly concerned petitioner, whom foresee danger endless litigation. 54 definition created begin. Injunctions obeyed, issue debatable. Mine Workers America, 330 258, 289 et seq., 307, 67 677, 693, 702, 91 884. seem frivolous forbidden reserved sought. holds modifications 'implicit' Why explicit? approve whose know authorization, excesses retracted ever needs enforcement? invite indulgence toward specific, concrete? impress me lawyerly reciprocal read assume function. is, doctrine, function, take discretionary determinations. Plainly shape affirmance. 56 directions concrete, specify discount reserve unless lost, forfeited impaired violations, limitation forth. should, short, record, translate 'set yardsticks,' lacking. done, approval don't what. 57 accept Government's along ordered. sense, approved, requiring obedience mandatory But, stands, surprised left later generation judges. 379, 386. Statutes-at-Large 730, amended, 1526, 13, 13. 387. Comm. Morton Salt 1948, 334 37, 51—52, 68 822, 830, 831, 92 1196; cf. International 1947, 332 392, 398—400, 12, 16—17, 20. Cement Institute, 333 683, 726—727, 793, 815—816, 1009; 722, 47, 47. Board Express Publishing 1941, 312 436 437, 699—700, 930. 'True, prohibit discounts, rebates, mathematical percentages previously utilized respondent. Had continued despite simply altering quantities salt applied.' 52—53, 1196. discussion following words certain there, manifestly affords support contention here. 53—54, 832. suggests category manufacturers—and prohibits group, e.g., shingles prefabricated houses. sales. covers competitively engaged 'in (i.e., 'asbestos materials'),' fabrication '(N)othing contained due resulting differing commodities sold *.' rebutting prima-facie competitor 13(b), Standard Oil 1951, 340 231, 240, 239. complain seller's select changes response changing affecting market for, marketability of, goods concerned. Hence 44—45, 827, 1196, justification; Atlantic E. Staley Mfg. 1945, 324 746, 65 971, 89 1338, meeting-competition justification. Where affirmance contending since issued, deciding course ordinary manner. open violated enforced. 294, 295. 735, 21. Brief Page 16. E.g., Whitney 192 746; Brands, Inc., 510; Herzog, 150 450; Baltimore Paint Color Works, 1930, 474; Balme, 1928, 615; Education Society, 1926, 947. cited arose identical corresponding 720, distinction 'To extent thereupon commanding Commission.' 113, 45(c), 45(c). Unless files sixty days, 113—114, 45(g) (l), 45(g, l). Ann.Rep. 7—8 (1951); (1948); (1947); (1946). H.R.10176, 75th Cong., 3d Sess.; H.R.3402, 81st 1st Sess. Accord, Fairyfoot Products 94 844; Butterick 1925, 910; L. baron Silver 1923, 292 KF105 F3 752. study pointed early (and others) develop thereby avoid careful published opinions. Henderson, 334. 893, 894. vests applicable regulated carriers; Communications wire radio communications; Civil Aeronautics air Reserve banks, etc., commerce. 1—4, 8, 9, 9. For emphasis appreciation American evolved indebted unpublished treatise Dr. Robert Weissenstein, Viennese European background, education him perspective attained accustomed Lord Chancellor Herschell employed figure. truth is,' he, skeleton piece filled substantial particulars action Trade. intention Legislature expressed object, penalty, subordinate speak, carried Trade.' Institute Patent Agents Lockwood, (1894) A.C. 347, 356—357. excellent English 'Delegated Legislation Today' Willis, Parliamentary Powers Government Departments, chapter England, Macmillan, Local Law Administration England Wales, Vol. I, Preface. history Fair Standards 201 H.R.Rep. 2738, Sess., sets forth summary House Bill Senate Bill. composed members, occupations bill, minimum wages 'which nearly economically feasible curtailing employment, maintain standard living health, efficiency, *' excess cents hour. 15. Similar maximum hours, hours. Likewise, require elimination substandard labor conditions. 17. Bill, laid wage hour requirements, id., 22—23, plus investigate 23. ultimately followed Bill; office Administrator Wage Hour Division Labor, given minor applicability congressional standards. 1060, seq. plan cases. See testimony Frances Perkins, Joint Hearings Committee Educations S. 2475 H.R. 7200, 178. attempt complex Executive, flooded litigation, courts' contrary indicated disastrous consequences. 84, 251 how trustworthiness judges workmanlike opinions causes prejudiced slipshod, imprecise elucidate determinations reached, score doubtless improve. VI, 327. Organization Executive Branch Task Force Report Regulatory Commissions (App. N.) Pages 129—130.

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