Chap006Cases

The Legal and Regulatory Environment of Business

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Case 06 Case 6-1 (Chapter 6, p. 169) ADARAND CONSTRUCTORS, INC. V . PENA 115 S.Ct. 2097 (1995) FACTS: Mountain Gravel & Construction Company was awarded the prime contract for a highway construction project in Colorado. Mountain Gravel then solicited bids from subcontractors for the guardrail portion of the contract. Adarand, a Colorado-based highway construction company specializing in guardrail work, submitted the low bid. Gonzales Construction Company also submitted a bid. Mountain Gravel awarded the subcontract to Gonzales since Gonzales qualified as a minority contractor and Adarand did not. The prime contract’s terms provide that Mountain Gravel would receive additional compensation if it hired subcontractors certified as small businesses controlled by “socially and economically disadvantaged individuals.” After losing the guardrail subcontract to Gonzales, Adarand filed suit claiming that the race-based presumptions involved in the use of subcontracting compensation clauses violate Adarand’s right to equal protection. The District Court granted the Government’s motion for summary judgment. The Court of Appeals for the Tenth Circuit affirmed. ISSUE: What is the standard review when considering race-based actions by governmental units? DECISION: Strict scrutiny. REASONS: 1. The Court examined its various decisions addressing this issue. 2. The cases include Bakke (1978), Fullilove (1980), Wygant (1986), Croson (1989), and Metro Broadcasting (1990). 3.
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Chap006Cases - Case 06 Case 6-1 (Chapter 6, p. 169) ADARAND...

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