MOOG INDUSTRIES, INC.,
v.
FEDERAL TRADE COMMISSION

U.S. | 1958-01-27
No. 77
Mr. Justice Whittaker took no part in the consideration or decision of these cases.
355 U.S. 411 Supreme Court of the United States (1958) Negative Treatment
Also reported at: 2 L. Ed. 2d 370 · 78 S. Ct. 377 · 1958 U.S. LEXIS 1857 · SCDB 1957-044
Cited by 305 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.


Holding

Courts of Appeals should not postpone the operation of a valid Federal Trade Commission cease and desist order against a single firm until similar orders have been entered against that firm’s competitors, absent a patent abuse of discretion by the Commission.


Facts & Procedural History

Two companies, Moog Industries and C. E. Niehoff & Co., were found by the FTC to have violated price discrimination provisions of the Clayton Act. Bot…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Per_curiam
Per Curiam.

Per Curiam.

The general question presented by these two cases is whether it is within the scope of the reviewing authority of a Court of Appeals to postpone the operation of a valid cease and desist order of the Federal Trade Commission against a single firm until similar orders have been entered against that firm’s competitors. In proceedings arising out of alleged violations of the price discrimination provisions of the Clayton Act, § 2, 38 Stat. 730, as amended by the Robinson-Patman Act, 49 Stat. 1526, 15 U. S. C. § 13, two Courts of Appeals reached opposed results on this underlying issue. In order to resolve the conflict we granted certiorari, 353 U. S. 908, 982.

In No. 77, petitioner (Moog Industries, Inc.) was found by the Commission to have violated the Act and was ordered to cease and desist from further violation. 51 F. T. C. 931. Petitioner sought review in the United States Court of Appeals for the Eighth Circuit. Upon affirmance of the order, 238 F. 2d 43, petitioner moved the court to hold the entry of judgment in abeyance on the ground that petitioner would suffer serious financial loss if prohibited from engaging in pricing practices open to its competitors. The court denied the requested relief.

In No. 110, respondent (C.

E. Niehoff & Co.) requested the Commission to hold in abeyance the cease and desist order that had been recommended by the hearing examiner, on the ground that respondent would have to go out of business if compelled to sell at a uniform price while its competitors were not under similar restraint. The Commission found that respondent had violated the Act and, in issuing its order, denied respondent’s request. 51 F.

T. C. 1114, 1153. On review in the United States Court of Appeals for the Seventh Circuit, the Commission’s determination of statutory violation was affirmed; however, the court (one judge dissenting) directed that the cease and desist order should take effect “at such time in the future as the United States Court of Appeals for the Seventh Circuit may direct, sua sponte or upon motion of the Federal Trade Commission.” 241 F. 2d 37, 43. In view of the scope of administrative discretion that Congress has given the Federal Trade Commission, it is ordinarily not for courts to modify ancillary features of a valid Commission order. This is but recognition of the fact that in the shaping of its remedies within the framework of regulatory legislation, an agency is called upon to exercise its specialized, experienced judgment.

Thus, the decision as to whether or not an order against one firm to cease and desist from engaging in illegal price discrimination should go into effect before others are similarly prohibited depends on a variety of factors peculiarly within the expert understanding of the Commission. Only the Commission, for example, is competent to make an initial determination as to whether and to what extent there is a relevant “industry” within which the particular respondent competes and whether or not the nature of that competition is such as to indicate identical treatment of the entire industry by an enforcement agency.

Moreover, although an allegedly illegal practice may appear to be operative throughout an industry, whether such appearances reflect fact and whether all firms in the industry should be dealt with in a single proceeding or should receive individualized treatment are questions that call for discretionary determination by the administrative agency. It is clearly within the special competence of the Commission to appraise the adverse effect on competition that might result from postponing a particular order prohibiting continued violations of the law.

Furthermore, the Commission alone is .empowered to develop that enforcement policy best calculated to achieve the ends contemplated by Congress and to allocate its available funds and personnel in such a way as to execute its policy efficiently and economically.

The question, then, of whether orders such as those before us should be held in abeyance until the respondents’ competitors are proceeded against is for the Com mission to decide. If the question has not been raised before the Commission, as was the situation in No. 77, a reviewing court should not in any event entertain it. If the Commission has decided the question, its discretionary determination should not be overturned in the absence of a patent abuse of discretion. Accordingly, the judgment in No. 77 is affirmed, and the judgment in No. 110 is vacated and the cause remanded to the Court of Appeals with directions to affirm the order of the Commission in its entirety.

It is so ordered.

Mr. Justice Whittaker took no part in the consideration or decision of these cases.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (73 total)

  • Heckler v. Chaney, 470 U.S. 821 (U.S. 1985)
    …footnote omitted). See generally H. R. Rep. No. 1980, 79th Cong., 2d Sess., 41 (1946) (to preclude APA review, a statute “must upon its face [*844] give clear and convincing evidence of an intent to withhold it”); cf. Moog Industries, Inc. v. FTC, 355 U. S. 411, 414 (1958) (Federal Trade Commission decisions to prosecute are reviewable and can be overturned when “patent abuse of discretion” demonstrated).2 Rather than confront Abbott Laboratories, perhaps the seminal case on judicial review under the APA,…
  • Butz v. Glover Livestock Comm'n Co., Inc., 411 U.S. 182 (U.S. 1973)
    …sanction was not to be overturned unless the Court of Appeals might find it “unwarranted [*186] in law or . . . without justification in fact . . . Id., at 112-113; Phelps Dodge Corp. v. NLRB, 313 U. S. 177, 194 (1941); Moog Industries, Inc. v. FTC, 355 U. S. 411, 413-414 (1958); FTC v. Universal-Rundle Corp., 387 U. S. 244, 250 (1967); 4 K. Davis, Administrative Law §30.10, pp. 250-251 (1958). The Court of Appeals acknowledged this definition of the permissible scope of judicial review3 but apparently regar…
  • Fla. Power & Light Co. v. Lorion, 470 U.S. 729 (U.S. 1985)
    …ef for the Nuclear Regulatory Commission in No. 82-1132 (CADC), pp. 24-25). See also Southern R. Co. v. Seaboard Allied Milling Corp., 442 U. S. 444, 455 (1979); NLRB v. Sears, Roebuck & Co., 421 U. S. 132, 138 (1975); Moog Industries, Inc. v. FTC, 355 U.S. 411, 413 (1958); cf. United States v. Batchelder, 442 U. S. 114, 124 (1979). As the Bachowski case holds, judicial review in such cases may be authorized by 28 U. S. C. § 1337, conferring jurisdiction on the district court. 421 U. S., at 566. The Court…

Previewing 3 of 73 citing cases — full citator treatment, depth of discussion, and citing context are member features.

Join FLexlaw to unlock all legal intelligence

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw