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Administrative Law Keyed to Popper
Block v. Community Nutrition Institute
Citation:
467 U.S. 340, 104 S. Ct. 2450, 81 L. Ed. 2d 270 (1984)Facts
Under the Agricultural Marketing Agreement Act of 1937, the Secretary of Agriculture issued milk market orders setting minimum prices handlers must pay to producers for milk products. The Act aimed to stabilize milk markets and ensure fair prices for dairy farmers. The orders classified milk into different price categories, with Class I (fluid milk) priced higher than Class II (milk used for manufactured products). Since 1964, the Secretary regulated reconstituted milk, requiring handlers to pay the lower Class II price but make a “compensatory payment” equal to the difference between Class I and Class II prices for any reconstituted milk not used for manufacturing. In 1980, three individual consumers, a handler, and a nonprofit organization sued, claiming this requirement made reconstituted milk uneconomical, thereby increasing consumer prices. They argued this violated the Act’s purposes and sought judicial review under the Administrative Procedure Act.
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