Arbitrary and Capricious Review
What does "Arbitrary and Capricious Review" mean in law?
The default standard of judicial review under Section 706(2)(A) of the Administrative Procedure Act, requiring courts to set aside agency action that is 'arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.' Under this standard, a court examines whether the agency considered the relevant factors, whether there was a clear error of judgment, and whether the agency articulated a satisfactory explanation with a rational connection between the facts found and the choice made (Motor Vehicle Manufacturers Association v. State Farm, 1983). Although deferential, this standard has real teeth: agencies must demonstrate reasoned decision-making based on the administrative record.
Definition
The default standard of judicial review under Section 706(2)(A) of the Administrative Procedure Act, requiring courts to set aside agency action that is 'arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.' Under this standard, a court examines whether the agency considered the relevant factors, whether there was a clear error of judgment, and whether the agency articulated a satisfactory explanation with a rational connection between the facts found and the choice made (Motor Vehicle Manufacturers Association v. State Farm, 1983). Although deferential, this standard has real teeth: agencies must demonstrate reasoned decision-making based on the administrative record.
Example
A court struck down NHTSA's rescission of the passive-restraint rule as arbitrary and capricious in State Farm because the agency failed to consider the alternative of requiring airbags rather than abandoning the entire standard.