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United States v. L. Cohen Grocery Company

• 1920 • 255 U.S. 81 • White Court
In the United States v. L. Cohen Grocery Company case of 1920, the U.S Supreme Court ruled that a provision in the Lever Act was unconstitutional because it did not provide an ascertainable standard of guilt for crimes related to price controls during World War I. The Lever Act was enacted by Congress to prevent profiteering and hoarding during wartime, but its language regarding "unjust or unreasonable rates" was deemed too vague by the court. The defendant, L.Cohen Grocery Company had been...Open Case
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Chief White Court
Term: 1920
Docket: 324
255 U.S. 81
41 S. Ct. 298
65 L. Ed. 516
1921 U.S. LEXIS 1795
Argued: Oct 18, 1920

United States v. L. Cohen Grocery Company

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Opinion Summary
AI Abstract

In the United States v. L. Cohen Grocery Company case of 1920, the U.S Supreme Court ruled that a provision in the Lever Act was unconstitutional because it did not provide an ascertainable standard of guilt for crimes related to price controls during World War I. The Lever Act was enacted by Congress to prevent profiteering and hoarding during wartime, but its language regarding "unjust or unreasonable rates" was deemed too vague by the court. The defendant, L.Cohen Grocery Company had been convicted under this act for selling sugar at a higher rate than what was considered reasonable and justifiable under war conditions. However, due to lack of clear guidelines on what constituted as 'reasonable', their conviction could not be upheld according to Due Process Clause of Fifth Amendment which requires laws to have clear standards so citizens know how they must behave.

Dissent Summary
AI Abstract

The dissenting opinion in the United States v. L. Cohen Grocery Company case argued that the Supreme Court's decision to strike down a provision of the Lever Act as unconstitutional was incorrect. The dissenters believed that Congress had sufficient authority under its war powers to regulate prices during times of emergency, such as World War I when this law was enacted. They contended that while price regulation might not be within Congress' power during normal times, it could become necessary and appropriate during extraordinary circumstances like a global conflict or other national emergencies. Therefore, they disagreed with the majority's view that this provision lacked an ascertainable standard for guilt and thus violated due process rights under Fifth Amendment.

Opinion written by Justice EDEWhite
Decided: Feb 28, 1921
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