No. 01-1772 In the Supreme Court of the United States

No. 01-1772

In the Supreme Court of the United States

KEN ROBERTS COMPANY, ET AL., PETITIONERS v.

FEDERAL TRADE COMMISSION

ON PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR

THE DISTRICT OF COLUMBIA CIRCUIT

BRIEF FOR THE RESPONDENT IN OPPOSITION

WILLIAM E. KOVACIC General Counsel

THEODORE B. OLSON Solicitor General Counsel of Record Department of Justice Washington, D.C. 20530-0001 (202) 514-2217

JOHN F. DALY Deputy General Counsel

LAWRENCE DEMILLE-WAGMAN Attorney Federal Trade Commission Washington, D.C. 20580

QUESTION PRESENTED

Whether the Federal Trade Commission was authorized to issue administrative subpoenas to investigate petitioners' marketing of instructional materials that purport to advise consumers how to make money through commodities and securities trading.

(I)

TABLE OF CONTENTS

Page

Opinions below ...............................................................................

1

Jurisdiction ......................................................................................

1

Statement ........................................................................................

1

Argument ........................................................................................

6

Conclusion ....................................................................................... 14

TABLE OF AUTHORITIES

Cases:

Board of Trade v. SEC, 677 F.2d 1137 (7th Cir.), vacated as moot, 459 U.S. 1026 (1982) ...............................

CAB v. Deutsche Lufthansa Aktiengesellschaft, 591 F.2d 951 (D.C. Cir. 1979) ......................................................

Cantor v. Detroit Edison Co., 428 U.S. 579 (1976) .......... Chicago Mercantile Exch. v. SEC, 883 F.2d 537

(7th Cir. 1989), cert. denied, 496 U.S. 936 (1990) ............. Clayton Brokerage Co. v. Mouer, 531 S.W.2d 805

(Tex. 1975) ............................................................................... Edmond v. United States, 520 U.S. 651 (1997) ................. Endicott Johnson Corp. v. Perkins, 317 U.S. 501

(1943) ........................................................................................ FTC v. Cement Inst., 333 U.S. 683 (1948) ......................... FTC v. Miller, 549 F.2d 452 (7th Cir. 1977) ...................... Gordon v. New York Stock Exch., Inc., 422 U.S.

659 (1975) ................................................................................. International Trading, Ltd. v. Bell, 556 S.W.2d

420 (Ark. 1977), cert. denied, 436 U.S. 956 (1978) ............ Minnesota v. Coin Wholesalers, Inc., 250 N.W.2d

583 (Minn. 1976) ..................................................................... Morton v. Mancari, 417 U.S. 535 (1974) .......................... National Collegiate Athletic Ass'n v. Smith,

525 U.S. 459 (1999) ................................................................ Posadas v. National City Bank, 296 U.S. 497

(1936) ........................................................................................

10

4, 7 11

10

10 14

4, 7 13

7

12

10

10 6, 11

10

13

(III)

IV

Cases--Continued:

Page

Radzanower v. Touche Ross & Co., 426 U.S. 148

(1976) ................................................................................ 6, 11, 13

SEC v. American Commodity Exch., Inc., 546

F.2d 1361 (10th Cir. 1976) .................................................... 10

Tennessee Valley Auth. v. Hill, 437 U.S. 153

(1978) ........................................................................................ 11

United States v. Cabrini Med. Ctr., 639 F.2d 908

(2d Cir. 1981) ...........................................................................

7

United States v. Radio Corp. of America, 358 U.S.

334 (1959) ................................................................................. 13

United States v. Tynen, 78 U.S. (11 Wall.) 88

(1870) ........................................................................................ 13

United States v. United Cont'l Tuna Corp., 425

U.S. 164 (1976) ........................................................................

6

United States v. W.T. Grant Co., 345 U.S. 629

(1953) ........................................................................................ 13

Statutes:

Commodity Exchange Act, 7 U.S.C. 1 et seq.:

7 U.S.C. 2(a)(1)(A) ...................................................... 5, 8, 9, 13

7 U.S.C. 6o(1)(A) .................................................................... 11

7 U.S.C. 6o(1)(B) .................................................................... 11

7 U.S.C. 6l(3) ..........................................................................

9

7 U.S.C. 7 .................................................................................

8

7 U.S.C. 23 ...............................................................................

8

Federal Trade Commission Act, 15 U.S.C. 41 et seq.:

15 U.S.C. 45 (? 5) ....................................................................

2

15 U.S.C. 45(a) ........................................................................

5

15 U.S.C. 45(a)(1) ................................................................... 12

15 U.S.C. 52 (? 12) .................................................................. 2, 5

15 U.S.C. 53 .............................................................................

5

15 U.S.C. 54 .............................................................................

5

15 U.S.C. 57b-1(c) ..................................................................

5

Investment Advisers Act of 1940, 15 U.S.C. 80b-1

et seq. ........................................................................................

4

15 U.S.C. 80b-6(4) ............................................................. 12

In the Supreme Court of the United States

No. 01-1772 KEN ROBERTS COMPANY, ET AL., PETITIONERS

v.

FEDERAL TRADE COMMISSION

ON PETITION FOR A WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR

THE DISTRICT OF COLUMBIA CIRCUIT

BRIEF FOR THE RESPONDENT IN OPPOSITION

OPINIONS BELOW

The opinion of the court of appeals (Pet. App. 1a-24a) is reported at 276 F.3d 583. The decision of the district court (Pet. App. 25a-26a) is unreported.

JURISDICTION

The judgment of the court of appeals was entered on December 28, 2001. A petition for rehearing was denied on March 1, 2002 (Pet. App. 27a-28a). The petition for a writ of certiorari was filed on May 30, 2002. The jurisdiction of this Court is invoked under 28 U.S.C. 1254(1).

STATEMENT

1. Petitioners Ken Roberts Co. and United States Chart Co. advertise and sell books, videos, and

(1)

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download