Facts of the Case
Under the National Industrial Recovery Act, Congress allowed the President to regulate certain industries by distributing authority to develop codes of conduct among business groups and boards in those industries. The Act did not provide standards for the President or the business groups in implementing its objectives. When Schechter Poultry Corp. was indicted for violating a business code governing the poultry industry in New York City, it argued that the law was an unconstitutional violation of the non-delegation doctrine.
Questions
Did Congress unconstitutionally delegate legislative power to the President by giving him power to regulate certain industries without also providing guiding standards?
Conclusions
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In an opinion authored by Chief Justice Hughes, the unanimous Court held that the Act was "without precedent" and was an unconstitutional delegation of legislative authority. The President cannot be allowed to have unbridled control to make whatever laws he believes to be necessary to achieve a certain goal. The law did not establish rules or standards to evaluate industrial activity, meaning Congress failed to provide the necessary guidelines for the implementation of this functionally legislative process. Justice Cardozo wrote a concurring opinion, which was joined by Justice Stone.
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