Brief Fact Summary. New York’s Milk Control Board’s price control regulation survived a Constitutional attack because it was not found to be arbitrary, discriminatory, or demonstrably irrelevant to the policy adopted by the legislature.
Synopsis of Rule of Law. Price controls that are arbitrary, discriminatory, or demonstrably irrelevant to the policies of the legislature, are unconstitutional because they are unnecessary and unwarranted interferences with individual liberty.
Issue. Whether the Constitution prohibits a state from fixing the selling price of milk?
Held. No. Judgment affirmed. The production and distribution of milk is a paramount industry of the state and largely affects the health and prosperity of its people. Property rights and contract rights are not absolute in nature and may be subject to limitations. Since the price controls were not “arbitrary, discriminatory, or demonstrably irrelevant” to the policy adopted by the legislature to promote the general welfare, it was consistent with the Constitution.
The Fifth Amendment, in the field of federal activity, and the Fourteenth, as respects state action, do not prohibit governmental regulation for the public welfare.View Full Point of Law