What Did the Supreme Court Do in the Case of Schechter

question 2

Multiple Choice

What did the Supreme Court do in the case of Schechter Poultry Corporation v. United States?

• A) It ended the Farm Credit Administration because it caused farmers' debts only to deepen, while Big Business accumulated great wealth at their expense.
• B) It overturned the National Industrial Recovery Act, ruling that Congress had given too much power to the president and representing the growing opposition to the New Deal.
• C) It decided that Schechter was involved in interstate, not local, trade and therefore need not change anything about its practices to adhere to the law.
• D) It upheld the constitutionality of the second Agricultural Adjustment Act because it protected the "middle men" that processed food crops and warehoused commodities.
• E) It prevented Roosevelt from going through the Second New Deal, even though he had already helped put together most of the policy for it.

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Definitions:

Municipal Obligations

Debt securities issued by municipalities to fund public projects, which may offer tax-exempt interest income to investors.

Operating Loss Carryback

A tax provision that allows a company to apply a current year's net operating losses to past profit years to obtain a tax refund.

Operating Loss Carryforward

Future reductions in taxable income allowed due to losses incurred in previous periods.

Temporary Differences

Differences between the book basis and tax basis of an asset or liability that result in taxable or deductible amounts in future years.