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book Business 8th Edition by Marianne Jennings cover

Business 8th Edition by Marianne Jennings

النسخة 8الرقم المعياري الدولي: 978-1285428710
book Business 8th Edition by Marianne Jennings cover

Business 8th Edition by Marianne Jennings

النسخة 8الرقم المعياري الدولي: 978-1285428710
تمرين 11
Fasten Your Seatbelts : Rulemaking Is a Rough Ride
Facts
The Department of Transportation (DOT), charged with the enforcement of the National Traffic and Motor Vehicle Safety Act of 1966 and the task of reducing auto accidents, passed Standard 208 in 1967. Standard 208 is the seatbelt requirement for motor vehicles, and its original form simply required that all cars be equipped with seatbelts. It soon became clear to the DOT that people did not use the belts, so the department began a study of passive restraint systems, which do not require any action on the part of the occupant other than operating the vehicle. The two types considered were automatic seatbelts and airbags. Studies showed that these devices could prevent approximately 12,000 deaths a year and over 100,000 serious injuries.
In 1972, after many hearings and comments, the Department of Transportation passed a regulation requiring some type of passive restraint system on all vehicles manufactured after 1975. The regulation allowed an ignition interlock system, which requires car occupants to have their seatbelts fastened before a car could be started. Congress, however, revoked the requirement of the ignition interlock.
Because of changes in directors of the DOT and the unfavorable economic climate in the auto industry, the requirements for passive restraints were postponed. In 1981, the department proposed a rescission of the passive restraint rule. After receiving written comments and holding public hearings, the agency concluded there was no longer a basis for reliably predicting that passive restraints increased safety levels or decreased accidents. Further, the agency found it would cost $1 billion to implement the rule, and they were unwilling to impose such substantial costs on auto manufacturers.
State Farm filed suit on the rescission of the rule on the basis that it was arbitrary and capricious. The court of appeals held that the rescission was, in fact, arbitrary" and capricious. Auto manufacturers appealed.
Judicial Opinion
WHITE, Justice
The ultimate question before us is whether NHTSA's [National Highway Traffic Safety Administration] rescission of the passive restraint requirement of Standard 208 was arbitrary and capricious. We conclude, as did the Court of Appeals, that it was.
The first and most obvious reason for finding the rescission arbitrary and capricious is that NHTSA apparently gave no consideration whatever to modifying the Standard to require that airbag technology be utilized. Standard 208 sought to achieve automatic crash protection by requiring automobile manufacturers to install either of two passive restraint devices; airbags or automatic seatbelts. There was no suggestion in the long rulemaking process that led to Standard 208 that if only one of these options were feasible, no passive restraint standard should be promulgated. Indeed, the agency's original proposed standard contemplated the installation of inflatable restraints in all cars. Automatic belts were added as a means of complying with the standard because they were beheved to be as effective as airbags in achieving the goal of occupant crash protection.
The agency has now determined that the detachable automatic belts will not attain anticipated safety benefits because so many individuals will detach the mechanism. Even if this conclusion were acceptable in its entirety, standing alone it would not justify any more than an amendment of Standard 208 to disallow compliance by means of the only technology which will not provide effective passenger protection. It does not cast doubt on the need for a passive restraint standard or upon the efficacy of airbag technology. In its most recent rulemaking, the agency again acknowledged the life-saving potential of the airbag.
Given the effectiveness ascribed to airbag technology by the agency, the mandate of the Safety Act to achieve traffic safety would suggest that the logical response to the faults of detachable seatbelts would be to require the installation of airbags. At the very least this alternative way of achieving objectives of the Act should have been addressed and adequate reasons given for its abandonment. But the agency not only did not require compliance through airbags, it did not even consider the possibility in its 1981 rulemaking. Not one sentence of its rulemaking statement discusses the air-bags-only option. We have frequently reiterated that an agency must cogently explain why it had exercised its discretion in a given manner.
For nearly a decade, the automobile industry waged the regulatory equivalent of war against the airbag and lost-the inflatable restraint was proven sufficiently effective. Now the automobile industry has decided to employ a seatbelt system which will not meet the safety objectives of Standard 208. This hardly constitutes cause to revoke the standard itself. Indeed the Motor Vehicle Safety Act was necessary because the industry was not sufficiently responsive to safety concerns. The Act intended that safety standards not depend on current technology and would be "technology-forcing" in the sense of inducing the development of superior safety design.
It is not infrequent that the available data does not settle a regulatory issue and the agency must then exercise its judgment in moving from the facts and probabilities on the record to a policy conclusion. Recognizing that policy making in a complex society must account for uncertainty, however, does not imply that it is sufficient for an agency to merely recite the terms "substantial uncertainty" as a justification for its actions. The agency must explain the evidence which is available, and must offer a "rational connection between the facts found and the choice made."
In this case, the agency's explanation for rescission of the passive restraint requirement is not sufficient to enable us to conclude that the rescission was the product of reasoned decision making. We start with the accepted ground that if used, seatbelts unquestionably would save many thousands of lives and would prevent tens of thousands of crippling injuries. Unlike recent regulations we have reviewed, the safety benefits of wearing seatbelts are not in doubt and it is not challenged that were those benefits to accrue, the monetary costs of implementing the standard would be easily justified.
Since 20 to 50 percent of motorists currently wear seatbelts on some occasions, there would seem to be grounds to believe that seatbelt use by occasional users will be substantially increased by the detachable passive belts. Whether this is the case is a matter for the agency to decide, but it must bring its expertise to bear on the question.
An agency's view of what is in the public interest may change, either with or without a change in circumstances. But an agency changing its course must supply a reasoned analysis. We do not accept all of the reasoning of the Court of Appeals but we do conclude that the agency has failed to supply the requisite "reasoned analysis" in this case. Accordingly, we remand the matter to the NHTSA for further consideration consistent with this opinion.
Is the agency's action valid?
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Business 8th Edition by Marianne Jennings
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