Interstate Commerce Commission (ICC)

The Interstate Commerce Commission (ICC) was an independent federal agency, established in 1887 and abolished in 1995, aimed at ensuring that public rates and services from carriers and transportation firms involved in interstate commerce were fair and reasonable.

Definition

The Interstate Commerce Commission (ICC) was an independent agency of the United States federal government created to regulate the railroads (and later other carriers) to ensure fair rates, eliminate rate discrimination, and regulate other aspects of common carriers. The ICC was established by the Interstate Commerce Act of 1887 and was abolished in 1995, with its functions transferred to other federal agencies.

History and Purpose

  • Founded: 1887
  • Abolished: 1995
  • Purpose: To ensure the public receives fair and reasonable rates and services from carriers and transportation service firms involved in interstate commerce.
  • Scope: Initially focused on railroads, later expanded to cover trucking, the interstate bus lines, and other modes of transportation.
  • Key Legislation: Interstate Commerce Act of 1887

Examples

  1. Rate Regulation: The ICC controlled freight rates to prevent unfair pricing practices by railroad companies.
  2. Eliminating Discriminatory Practices: The ICC worked to eliminate discriminatory practices where larger manufacturers might receive lower shipping rates than smaller businesses.

Frequently Asked Questions (FAQs)

What was the primary function of the ICC?

The primary function of the Interstate Commerce Commission was to regulate the economics and services of specified carriers engaged in transportation between states, with an emphasis on ensuring fair and reasonable rates and eliminating discriminatory practices.

What legislation led to the formation of the ICC?

The ICC was formed through the Interstate Commerce Act of 1887, which was the first federal law to regulate private industry in the United States.

Why was the ICC abolished?

The ICC was abolished as part of the deregulatory trend that started in the 1970s. Its remaining functions were transferred to the Surface Transportation Board (STB) and other federal agencies to streamline federal oversight of transportation industries.

Which types of transportation did the ICC regulate?

The ICC regulated railroads initially, but its authority later included trucking, bus lines, water carriers, and pipelines involved in interstate commerce.

What agency took over most of the ICC functions after its abolition?

The Surface Transportation Board (STB) took over many of the functions formerly performed by the ICC.

  • Surface Transportation Board (STB): The federal agency that took over many of the responsibilities of the Interstate Commerce Commission after its dissolution.
  • Interstate Commerce Act: 1887 legislation that established the ICC and was the first federal law to regulate unfair business practices.
  • Deregulation: Reduction or elimination of government power in a particular industry, often seeking to improve efficiency and competition.

Online References

Suggested Books for Further Studies

  • “The Interstate Commerce Commission and the Railroad Industry: A History of Regulatory Policy” by Richard D. Stone
  • “The Economic Regulation of Business and Industry: A Comprehensive History” by Claire E. Gillon
  • “Regulation of the Railroad Industry: American Railroad Regulation in Historical Perspective” by Charles R. Geisst

Fundamentals of the Interstate Commerce Commission (ICC): Business Law Basics Quiz

### What was the Interstate Commerce Commission (ICC) primarily created to regulate? - [x] Railroad industries and other carriers - [ ] Banking sectors - [ ] Telecommunications - [ ] Real estate markets > **Explanation:** The ICC was primarily created to regulate the railroad industries and other carriers to ensure fair and reasonable rates and to eliminate discriminatory practices. ### Which act established the Interstate Commerce Commission? - [x] Interstate Commerce Act of 1887 - [ ] Sherman Antitrust Act - [ ] Federal Reserve Act - [ ] Glass-Steagall Act > **Explanation:** The ICC was established under the Interstate Commerce Act of 1887. ### When was the Interstate Commerce Commission (ICC) abolished? - [ ] 1987 - [ ] 1993 - [x] 1995 - [ ] 2001 > **Explanation:** The ICC was abolished in 1995 and its duties were transferred to other federal agencies. ### Which agency took over most of the ICC's functions after it was abolished? - [ ] Federal Trade Commission (FTC) - [x] Surface Transportation Board (STB) - [ ] Federal Aviation Administration (FAA) - [ ] Securities and Exchange Commission (SEC) > **Explanation:** The Surface Transportation Board (STB) took over many of the functions previously handled by the ICC. ### What was a significant reason for the abolition of the ICC? - [ ] A shift to more rigorous regulation - [ ] Complete deregulation of interstate commerce - [x] Deregulation trends in transportation industries - [ ] Transfer of all regulatory functions to the Department of Transportation > **Explanation:** The ICC was abolished as part of a broader trend toward deregulation in the transportation industries. ### Which of the following was a primary focus of the ICC’s role in regulating carriers? - [x] Ensuring fair rates and eliminating discriminatory practices - [ ] Subsidizing failing transportation companies - [ ] Increasing state-level transportation regulations - [ ] Overseeing commercial banking activities > **Explanation:** The ICC aimed to ensure fair rates and eliminate discriminatory practices by regulating carriers. ### The ICC initially regulated which mode of transportation? - [x] Railroads - [ ] Airlines - [ ] Waterways - [ ] Highways > **Explanation:** The ICC initially regulated railroads before expanding its oversight to other modes of transportation. ### What essential service did the ICC provide to the public? - [x] Ensuring that transportation rates were fair and reasonable - [ ] Providing federal subsidies to transportation companies - [ ] Managing transportation infrastructure projects directly - [ ] Setting nationwide energy policies > **Explanation:** The ICC was established to ensure that the public received fair and reasonable rates from transportation carriers involved in interstate commerce. ### Name one significant act of legislation that helped shape the role of the ICC. - [x] Interstate Commerce Act of 1887 - [ ] Clayton Antitrust Act - [ ] Telecommunications Act of 1996 - [ ] National Labor Relations Act > **Explanation:** The Interstate Commerce Act of 1887 founded the ICC, establishing the framework for its regulatory responsibilities. ### What was the primary focus of the ICC’s regulatory efforts when it was initially established? - [ ] Local commerce - [ ] International trade - [x] Interstate transportation - [ ] Urban development > **Explanation:** The ICC’s primary focus when it was first established was on regulating interstate transportation to ensure fair and reasonable services.

Thank you for exploring the detailed aspects of the Interstate Commerce Commission (ICC) and assessing your knowledge with our tailored quiz. Continue expanding your understanding of transportation regulation and business law!


Wednesday, August 7, 2024

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