State Farm Test

State Farm Test

Definition

A so-called hard-look test for judicial review of agency decisions that requires an agency to (1) articulate a satisfactory explanation for its action, (2) provide a reasoned analysis for any policy change, (3) consider all relevant factors, and (4) explore any alternative way to meet the agency’s objectives. The United States Supreme Court first applied this test in Motor Vehicle Manufacturers Association of the United States v. State Farm Mutual Automobile Insurance Co., 463 U.S. 29 (1983).

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