November 14, 2011. Section 706 of the Administrative Procedure Act allows courts to overturn decisions by government agencies that are arbitrary or capricious. Courts try to avoid looking at the substance of a regulation and instead review the process by which a decision was made. See Motor Vehicle Mfr. Ass'n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29 (1983). Commentators refer to this as a "hard look" review -- that is, did the agencies take a "hard look" at the underlying facts and policy? If not, a court may (with some exceptions) set aside the agency's decision as arbitrary and capricious.
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