Advanced Placement US History (AP US History) Practice Exam

Which Supreme Court case was significant in regulating railroad rates?

1. Plessy v. Ferguson

2. Brown v. Board of Education

3. Munn v. Illinois

4. Wabash v. Illinois

The correct answer is: Munn v. Illinois

The significance of Munn v. Illinois lies in its role in upholding the principle that states have the authority to regulate private industries that serve the public interest, such as railroads. In this landmark case decided in 1877, the Supreme Court ruled that the state of Illinois could set maximum rates for grain elevators, essentially allowing state regulation of businesses whose operations affected the public welfare. This case established a precedent for future regulation of railroads and similar enterprises, emphasizing the government’s responsibility to curb monopolistic practices and ensure fair pricing for consumers. Munn v. Illinois set the stage for greater regulatory efforts that would blossom in the late 19th and early 20th centuries, ultimately leading to the Interstate Commerce Act and the creation of the Interstate Commerce Commission. It affirmed the right of states to regulate commerce within their borders, shaping the legal landscape for ongoing debates about state versus federal control over industries.