Define: Parker Doctrine

Parker Doctrine
Parker Doctrine
Quick Summary of Parker Doctrine

The Parker doctrine, also referred to as the state-action doctrine, is a legal principle that exempts actions taken by a state or its officials from antitrust laws. This allows states to engage in anticompetitive behaviour without violating antitrust laws. The doctrine was established in the landmark case of Parker v. Brown in 1943. However, the limitations of this doctrine are assessed through the Midcal test.

Full Definition Of Parker Doctrine

The Parker Doctrine, also referred to as the State-Action Doctrine, is a principle in antitrust law that exempts a state’s anticompetitive acts or official acts directed by a state from the application of antitrust laws. For instance, if a state government enacts a law that restricts competition in a specific industry, that law would not be subject to antitrust scrutiny under the Parker Doctrine. This is because the state is considered to be acting in its sovereign capacity and is therefore immune from antitrust laws. The Parker Doctrine was established in the landmark case of Parker v. Brown in 1943, where the Supreme Court ruled that the Sherman Antitrust Act did not apply to a California law that regulated the price of raisins produced in the state. Overall, the Parker Doctrine provides a significant exception to antitrust laws, enabling states to regulate certain industries without the risk of antitrust liability.

Parker Doctrine FAQ'S

The Parker Doctrine refers to a legal principle established by the United States Supreme Court in the case of Parker v. Brown (1943). It states that certain state actions, such as those taken by state governments to regulate their own economies, may be exempt from federal antitrust laws.

The Parker Doctrine protects state actions that are undertaken in the exercise of a state’s sovereign power. It allows states to regulate their own economies without interference from federal antitrust laws.

No, the Parker Doctrine does not provide blanket immunity to states engaging in anti-competitive behavior. State actions must still meet certain criteria to be protected under the doctrine, such as being undertaken in the public interest and not unduly burdening interstate commerce.

No, the Parker Doctrine only applies to state actions. Private parties cannot rely on the doctrine to defend their own anti-competitive behavior.

Yes, the federal government can challenge state actions protected under the Parker Doctrine if they believe that the actions are anti-competitive and violate federal antitrust laws. However, the burden of proof is higher for the federal government in such cases.

Yes, the Parker Doctrine has certain limitations. For example, it does not protect state actions that are purely protectionist or designed to discriminate against out-of-state businesses.

Yes, states can invoke the Parker Doctrine to regulate industries that are traditionally regulated by federal agencies. However, the state actions must still meet the criteria established by the Supreme Court to be protected under the doctrine.

No, the Parker Doctrine cannot be used to challenge federal antitrust laws. It only provides protection to state actions that would otherwise be considered anti-competitive under federal law.

Yes, the Parker Doctrine can be applied to actions taken by local governments within a state, as long as those actions meet the criteria established by the Supreme Court.

Yes, the Parker Doctrine can be overturned or modified by the Supreme Court or through legislative action. However, any changes to the doctrine would require a significant legal and political process.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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