450 U.S. 662
Kassel v. Consolidated Freightways Corporation of Delaware
APPEAL FROM THE UNITED STATES COURT OF APPEALS FOR THE EIGHTH CIRCUIT
• The state of Iowa made passed a law that prevented 65 foot trailers from being used on their highways.
• Consolidated Freightways Corp. sued the state of Iowa claiming that it was unconstitutional for them to do so because it unnecessarily restricted commerce.
• Was there enough valid reason for the state of Iowa to restrict the length of trucks.
• The court had to decided whether or not it was constitutional for Iowa to prohibit 65-foot double-trailer trucks on their highways.
Decisions of the Courts:
• The District Court found that the evidence established that 65-foot doubles were as safe as the shorter truck units, and held that the state law impermissibly burdened interstate commerce.
• The Court of Appeals affirmed.
• The state of Iowa could not demonstrate the reasoning behind their safety concerns the law could not be harmonized with the commerce law. Basically it restricted commerce unreasonably.
• Furthermore, the law actually increased the safety risk because it required more trucks of smaller size to transport the same amount of goods or it required longer trucks to travel greater distances.
o The safety risk is proportional to the amount of time trucks are on the road.
• There are not really any managerial implications in this case. The shipping company can continue with business like normal and does not have to reroute their trucks.
Result of Opposite Ruling:
• The shipping industry that runs through Iowa would have suffered greatly as they would have had to do 1 of 2 things:
o 1) Use more smaller trucks which would have required the purchase of more trucks as well as additional spending on gas
o 2) or they would have had to detour around the state of Iowa which would have increased shipping time and cost.
• This was a...