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Panama Refining Co. v. Ryan Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: The Supreme Court struck down a provision of the National Industrial Recovery Act that gave the President unfettered discretion to prohibit interstate shipment of “hot oil,” holding it was an unconstitutional delegation of legislative power without an intelligible principle.
Legal Significance: This case is one of only two instances where the Supreme Court has invalidated a federal statute on nondelegation grounds, establishing a high-water mark for the doctrine that Congress cannot transfer its essential legislative functions to the executive branch.
Panama Refining Co. v. Ryan Law School Study Guide
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Case Facts & Court Holding
Key Facts & Case Background
Section 9(c) of the National Industrial Recovery Act of 1933 (NIRA) authorized the President “to prohibit the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted” by state law. This excess petroleum was known as “hot oil.” Pursuant to this authority, President Roosevelt issued an Executive Order prohibiting such transportation, and the Secretary of the Interior promulgated regulations to enforce the order. The Panama Refining Co. and Amazon Petroleum Corp., oil producers affected by the order, sought an injunction to prevent federal officials from enforcing the regulations. They argued that § 9(c) was an unconstitutional delegation of legislative power to the President because it failed to provide any standards to guide his discretion. The statute did not specify when or under what circumstances the President should issue the prohibition, nor did it require him to make any findings of fact before acting.
Court Holding & Legal Precedent
Issue: Does a statute that authorizes the President to prohibit the interstate transportation of a commodity, without establishing any policy, standard, or required finding to guide the President’s action, constitute an unconstitutional delegation of legislative power?
Yes. The Court held that § 9(c) of the NIRA was an Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exerc
IRAC Legal Analysis
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IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.
Legal Issue
Does a statute that authorizes the President to prohibit the interstate transportation of a commodity, without establishing any policy, standard, or required finding to guide the President’s action, constitute an unconstitutional delegation of legislative power?
Conclusion
*Panama Refining* established a strict, though rarely invoked, application of the nondelegation Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in volu
Legal Rule
Congress may not delegate its essential legislative functions to the executive branch; Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut
Legal Analysis
Chief Justice Hughes, writing for the majority, distinguished this case from prior Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod t
Flash-to-Full Case Opinions
Flash Summary
- The Supreme Court held that § 9(c) of the National Industrial