During the 1940s, the U.S. government instituted a price support system for domestic potatoes. In order to protect the potato market from imported Canadian potatoes, the U.S. secretary of state entered into an executive agreement with the Canadian ambassador in which they agreed that Canada would permit the export of potatoes into the United States only if they were to be used for seed and not for food. The agreement was not submitted
To or approved by Congress. The Agricultural Act of 1948 permitted the president to restrict potato imports by requesting an investigation by the Tariff Commission and considering its recommendations. Guy W. Capps, Inc., the importer, assured the Canadian exporter that the potatoes were destined for planting, but while they were in transit, they were sold to the A&P grocery store chain for resale. The United States brought suit against Guy Capps for damages. The court entered judgment for Guy Capps and the government appealed. Was the U.S.– Canadian agreement valid under the U.S. Constitution? Was the president acting under his inherent constitutional authority, under power delegated from Congress, or neither? What did Congress say the president could do to restrict agricultural imports? See United States v. Guy W. Capps, Inc., 204 F.2d 655 (4th Cir. 1953).