During the Korean War, unions threatened to strike steel mills. President Truman responded by ordering Secretary of

Question:

During the Korean War, unions threatened to strike steel mills. President Truman responded by ordering Secretary of Commerce Sawyer to seize the mills and keep them running. Sawyer began to issue orders to company executives. A federal district court enjoined Sawyer from taking over the companies; the court of appeals stayed the injunction; and the Supreme Court immediately granted certiorari.


Questions:

1. Did the President have the constitutional power to seize the steel mills?

2. What is the source of the President’s power?

3. Does Article II or any other part of the Constitution expressly grant the President power to seize private property?

4. Then what is the basis for Truman’s argument?

5. Why didn’t Truman’s argument prevail?

6. What was the outcome?

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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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