United States v. Capps, Inc.
United States Court of Appeals for the Fourth Circuit
204 F.2d 655, aff'd, 348 U.S. 296 (1955)

- Written by Josh Lee, JD
Facts
In 1948, the United States (plaintiff) adopted the Agricultural Act, which required the president to cause the United States Tariff Commission to investigate any potential issues with imported products interfering with an agricultural program prior to imposing trade restrictions. Also in 1948, the United States created a program to protect American potato farmers. The United States agreed to purchase all potatoes grown by eligible farmers that could not be sold at commercial prices. The United States also entered into an executive agreement, based only on the president’s authority, with Canada. Under that agreement, Canada agreed to only grant export permits to sell potatoes to purchasers in the United States that agreed to require the use of the potatoes be restricted to seed, not food. In exchange, Canada received a number of trade benefits. Capps, Inc. (defendant) imported potatoes from Canada and agreed to only use the imported potatoes for seed. However, Capps immediately resold the potatoes to a retailer, with no restriction on use. The United States sued Capps for violating its contract.
Rule of Law
Issue
Holding and Reasoning (Parker, C.J.)
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