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Court Challenges to Regulation: The Judges Step In

In: The Kansas Blue Sky Act of 1911

Author

Listed:
  • David Ress

    (University of New England)

Abstract

Investment bankers had only limited success with their publicity and lobbying efforts against the Blue Sky Act. But they quickly turned to challenge Kansas model laws, but not the Kansas law itself, in court. Federal trial courts in Michigan, Ohio, Iowa, and West Virginia found merit in the bankers’ arguments that the Blue Sky Acts of those states were an unconstitutional interference with interstate commerce. Some found as well that the laws granted too much power to a single official and that the laws treated in-state firms differently from out-of-state firms, another violation of the Constitution. State courts, including Kansan courts, did not tend to rule this way and when moderately revised Michigan and Ohio laws came before the U.S. Supreme Court, the justices upheld them as legitimate exercises of police power.

Suggested Citation

  • David Ress, 2023. "Court Challenges to Regulation: The Judges Step In," Springer Books, in: The Kansas Blue Sky Act of 1911, chapter 0, pages 91-106, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-43831-8_7
    DOI: 10.1007/978-3-031-43831-8_7
    as

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