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Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mut. Automobile Ins. Co.
Supreme Court of the United States (1983) | 77 L. Ed. 2d 443; 103 S. Ct. 2856; 463 U.S. 29; 1983 U.S. LEXIS 84; 51 U.S.L.W. 4953; 13 Envtl. L. Rep. (Envtl. Law Inst.) 20672
TL;DR: The Supreme Court ruled that a federal agency's decision to cancel a safety rule requiring airbags or automatic seatbelts was unlawful. The agency acted arbitrarily and capriciously by failing to provide a reasoned explanation for its reversal, particularly its failure to consider obvious alternatives.
Legal Significance: This case established the modern standard for judicial review of an agency's decision to rescind a regulation. It requires agencies to provide a "reasoned analysis" for changing course, solidifying the "hard look" doctrine under the arbitrary and capricious standard of the Administrative Procedure Act.