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Ford Motor Company v. Federal Trade Commission

673 F.2d 1008 (1981)

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Ford Motor Company v. Federal Trade Commission

United States Court of Appeals for the Ninth Circuit
673 F.2d 1008 (1981)

SC

Facts

The Federal Trade Commission (FTC) (defendant) instituted an adjudicatory action against the Ford Motor Company (Ford) (plaintiff), alleging that Ford violated § 5 of the FTC Act (§ 5) by not giving defaulting debtors more than wholesale value for cars that Ford repossessed. This repossession practice was industry standard, and the FTC instituted similar actions against other major car manufacturers. These other manufacturers settled their cases. Concurrently, the FTC had an open rulemaking addressing largely the same issues. In the adjudication against Ford, the FTC issued an enforcement order finding the company in violation of § 5. The FTC ordered Ford to cease and desist its current repossession practices and to implement new practices. Ford appealed the decision to federal court, claiming that the FTC should have ordered the new practices through rulemaking rather than adjudication.

Rule of Law

Issue

Holding and Reasoning (Goodwin, J.)

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