Law Students

Getting to Deregulation

By Casebook Sherpa

I had a brain cramp last night in Admin. I just couldn’t grasp what the professor was asking me when I was briefing a case. He wanted me to state the effect of a certain agency interpretation of a statute that required carriers to do business with shippers “reasonably.” The agency interpreted this to allow it to prohibit a practice whereby a carrier would tell the shipper it would charge one rate (the rate it supposedly filed with the government) but later file a higher rate and charge the shipper that rate. (Another statute required the carrier to charge the shipper only that rate which was filed with the Interstate Commerce Commission.)

The question related to the effect of the ICC’s reliance on the more general “reasonable” standard to prohibit this practice.

My answer: it would make the industry more honest.

Professor’s response: well, it would make the industry more honest but what effect would it have?

Smarter student: It would effectively deregulate the industry by allowing the general resonableness standard to supercede the more specific statute requiring the filing of certain rates. Basically, the carrier would be forced to negotiate the actual rate being charged and then file that rate.

I just couldn’t connect the actual effect of the interpretation.

Oh well.

Full post as published by Fight The Hypo on February 19, 2009 (boomark / email).