In Gillette Dairy, Inc. v. Nebraska Dairy Products Board the constitutionality of setting minimum prices for dairy products in Nebraska was challenged. The plaintiff, a dairy located in northeastern Nebraska, contended the Dairy Industry Trade Products Act violated the Nebraska Constitution because (1) it deprived the dairy of liberty and property without due process of law; and (2) it was an illegal delegation of legislative powers. The purpose of the act was to prevent unfair trade practices which were believed to be forcing dairies out of business. If left uncontrolled it was thought that price cutting would jeopardize the public interest of obtaining a sufficient supply of milk at a reasonable price. "Price wars" were to be prevented by making it unlawful "[t]o sell or offer to sell within the state any dairy product for less than the minimum basic cost." The Nebraska Supreme Court concluded that the statutes violated the due process clause and were therefore unconstitutional but declined to extend the holding to include an illegal delegation of powers.
Randall C. Hanson,
Substantive Due Process in Nebraska: Gillette Dairy, Inc. v. Nebraska Dairy Products Board, 192 Neb. 89, 219 N.W.2d 214 (1974),
54 Neb. L. Rev. 426
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