hoover ronwin argued january decided may respondent ronwin hereafter respondent unsuccessful candidate admission arizona bar pursuant arizona constitution arizona plenary authority determine admissions bar arizona rules effect committee examinations admissions committee appointed authorized examine applicants specified subjects rules required committee submit grading formula prior giving examination grading examination committee directed submit recommendations admission applicants made final decision grant deny admission practice rules rejected applicant entitled seek individualized review committee adverse recommendation filing petition arizona denied respondent petition review ultimately filed action federal district arizona state bar members committee including petitioners others respondent alleged petitioners conspired restrain trade violation sherman act artificially reducing numbers competing attorneys state argued committee set grading scale examination reference number new attorneys thought desirable rather reference suitable level competence petitioners contended immune antitrust liability doctrine parker brown district dismissed complaint ground inter alia failure state justiciable claim appeals reversed holding although petitioners ultimately might able show entitled immunity district decided issue motion dismiss held district properly dismissed complaint failure state claim relief granted pp parker state legislature adopts legislation actions constitute state ipso facto exempt operation antitrust laws state acting legislative capacity occupies position state legislature purposes doctrine bates state bar arizona activity issue directly legislature carried others pursuant state authorization must showing challenged conduct pursuant clearly articulated state policy replace competition regulation degree state legislature supervises representative may relevant inquiry however challenged conduct fact state legislature issues clear articulation active supervision need addressed pp case actions committee regard bar examination grading formula divorced arizona exercise sovereign powers although arizona necessarily delegated administration admissions process committee rules retained sole authority determine admitted practice law arizona thus challenged conduct reality arizona therefore exempt sherman act liability doctrine cf bates state bar arizona supra pp bates distinguished ground arizona petitioner case named defendant complaint ground parker inapplicable respondent challenging arizona conduct situation existed bates bates real party interest arizona case law well state rules makes clear made final decision applicant allow sherman act plaintiffs look behind actions state sovereigns base claims perceived illegal conspiracies among committees commissions others necessarily must advise sovereign emasculate parker brown doctrine pp powell delivered opinion burger brennan marshall joined stevens filed dissenting opinion white blackmun joined post rehnquist took part decision case took part consideration decision case charles hoover pro se argued cause petitioners briefs jefferson lankford donn kessler philip von ammon filed brief state bar arizona et al respondents rule support petitioners respondent edward ronwin argued cause filed brief pro se acting solicitor general wallace argued cause amicus curiae urging affirmance brief assistant attorney general baxter john garvey barry grossman nancy garrison briefs amici curiae urging reversal filed national conference bar examiners kurt melchior allan ashman jan chilton state bar california henry thumann herbert rosenthal truitt richey robert sweet brief amici curiae filed state colorado et al stephen sachs attorney general maryland charles monk ii linda jones assistant attorneys general duane woodard attorney general colorado thomas mcmahon first assistant attorney general thomas miller attorney general iowa john perkins assistant attorney general robert abrams attorney general new york lloyd constantine assistant attorney general william leech attorney general tennessee william haynes deputy attorney general jim mattox attorney general texas david richards executive assistant attorney general bronson la follette attorney general wisconsin michael zaleski assistant attorney general justice powell delivered opinion case presents question whether doctrine immunity actions sherman act applies grading bar examinations committee appointed according rules arizona respondent ronwin unsuccessful candidate admission bar arizona petitioners four members arizona committee examinations admissions committee arizona constitution vests authority determine admitted practice law state hunt maricopa county employees merit system see also rev stat ann pursuant authority arizona established committee examine recommend applicants admission arizona bar arizona rules adopted effect delegated certain responsibilities committee reserving ultimate authority grant deny admission rules provided committee shall examine applicants subjects enumerated rules recommend th admission practice applicants found requisite qualifications rule also authorized committee utilize grading scoring system committee deems appropriate discretion use bar examination rule vii amended xxvii xxxii even respect grading scoring delegate final authority committee rules directed committee file formula intended use grading examination days prior giving examination also grading examination compiling list applicants considered qualified practice law state committee directed submit recommendations final action rule rules arizona case law authority admit deny admission finally rejected applicant entitled seek individualized review adverse recommendation committee filing petition directly rules required committee file response petition called prompt fair decision applicant claims arizona ronwin took arizona bar examination february failed pass committee recommended arizona deny admission bar accepted recommendation ronwin petitioned review manner committee conducted graded examination particular alleged committee failed provide model answers examination failed file grading formula within time period specified rules applied draconian process used grading formula measured group rather individual performance failed test applicants area law rules required testing conducted examination atmosphere alleged committee conduct constituted abuse discretion deprived due process equal protection violated sherman act denied petition two subsequent petitions rehearing ronwin sought review arizona action denied petition certiorari four years later march ronwin filed action district district arizona petitioners named defendants suit capacity individual members committee ronwin renewed complaint petitioners conspired restrain trade violation sherman act stat artificially reducing numbers competing attorneys state arizona gist ronwin argument committee petitioners constituted majority set grading scale february examination reference number new attorneys thought desirable rather reference suitable level competence petitioners moved dismiss complaint federal rule civil procedure failure state claim upon relief granted federal rule civil procedure lack jurisdiction particular petitioners alleged acting committee immune antitrust liability parker brown petitioners also argued ronwin suffered damage conduct complained committee conduct affected interstate commerce district granted petitioners motion finding complaint failed state justiciable claim jurisdiction ronwin lacked standing appeals ninth circuit reversed dismissal complaint ronwin state bar arizona appeals read district ruling ronwin failed state claim holding bar examination grading procedures immune federal antitrust laws parker brown reasoned although petitioners ultimately might able show entitled immunity district decided issue rule motion see stated parker progeny mere fact petitioners state officials appointed arizona insufficient confer immunity relying reading several recent opinions appeals noted petitioners might able invoke doctrine reasoned first must show acting pursuant clearly articulated affirmatively expressed state policy therefore dismissal failure state claim improper also held ronwin standing bring action case remanded district action granted certiorari review appeals application doctrine reverse ii starting point analysis involving doctrine reasoning parker brown parker considered antitrust implications california agriculture prorate act state statute restricted competition among food producers california relying principles federalism state sovereignty declined construe sherman act prohibiting anticompetitive actions state acting legislature find nothing language sherman act history suggests purpose restrain state officers agents activities directed legislature dual system government constitution sovereign save congress may constitutionally subtract authority unexpressed purpose nullify state control officers agents lightly attributed congress years since decision parker occasion several cases determine scope doctrine never departed however parker basic reasoning applying parker doctrine bates state bar arizona held state acting legislative capacity occupies position state legislature therefore decision state acting legislatively rather judicially exempt sherman act liability state action see also goldfarb virginia state bar closer analysis required activity issue directly legislature carried others pursuant state authorization see community communications boulder municipal regulation cable television industry california retail liquor dealers assn midcal aluminum private arrangement authorized state new motor vehicle board california orrin fox new franchises controlled state administrative board cases becomes important ensure anticompetitive conduct state representative contemplated state lafayette louisiana power light opinion brennan see new mexico american petrofina replacing entirely free competition form regulation restraint authorized approved state rationale parker inapposite result cases involving anticompetitive conduct nonsovereign state representative required showing conduct pursuant clearly articulated affirmatively expressed state policy replace competition regulation boulder supra also found degree state legislature supervises representative relevant inquiry see midcal aluminum supra goldfarb supra conduct sovereign hand danger unauthorized restraint trade arise conduct issue fact state legislature need address issues clear articulation active supervision pursuant state constitution arizona plenary authority determine admissions bar therefore first critical step analysis must determine whether conduct challenged parker doctrine applies ronwin cause action sherman act iii issue arizona plan determining admissions bar petitioners use thereunder grading formula ronwin alleged petitioners conspired use formula restrain competition among lawyers argument although petitioners qualified state officials capacity members committee acted independently arizona result argument continues committee actions representative rather therefore entitled immunity agree actions committee divorced exercise sovereign powers opinion bates state bar arizona directly pertinent bates two attorneys suspended temporarily practice law arizona violating disciplinary rule american bar association aba prohibited lawyer advertising arizona incorporated aba advertising prohibition local rules rules also provided board governors arizona state bar association acting recommendation local bar disciplinary committee recommend censure suspension member bar violating advertising ban rules board governor recommendation automatically become effective aggrieved party object recommendation within days party objected entitled arizona review findings recommendations board governors local committee plaintiffs challenged rule sherman act first amendment grounds ultimately concluded aba rule violated first amendment first held state bar association immune sherman act liability enforcement disciplinary rules state action reaching conclusion noted although state bar named defendant suit suspended attorneys complaint state stated appellants claims state arizona real party interest adopted rules ultimate trier fact law enforcement process wilson although state bar plays part enforcement rules role completely defined state bar acts agent continuous supervision logic holding bates applies greater force committee actions petitioners members official body selected appointed arizona indeed conceded state officers gave members committee discretion compiling grading bar examination retained strict supervisory powers ultimate full authority actions rules specified subjects tested general qualifications required applicants bar respect specific conduct ronwin complained establishment examination grading formula rules explicit rule vii authorized committee determine appropriate grading scoring system rule vii required committee submit grading formula least days prior examination giving grading examination committee authority limited making recommendations made final decision grant deny admission practice finally rule xii provided detailed mandatory review procedure aggrieved candidate challenge committee grading formula light provisions holding reasoning bates conclude although arizona necessarily delegated administration admissions process committee approved particular grading formula retained sole authority determine admitted practice law arizona thus conduct ronwin challenges reality arizona see bates therefore exempt sherman act liability doctrine parker brown oral argument ronwin suggested attribute arizona intent approve anticompetitive activity petitioners absence proof aware petitioners devised grading formula purpose limit number lawyers state argument misconceives basis doctrine reason state action immune sherman act liability state chosen act anticompetitive fashion state chosen act suggestion purpose restrain state action sherman act legislative history parker suggest parker suggested since state action exempt antitrust liability sovereign acted wisely full disclosure subordinate officers requirement action state acting sovereign bates supra action issue whether anticompetitive clearly arizona iv dissenting opinion justice stevens adopted alter dramatically doctrine immunity therefore reply directly dissent concedes must arizona exercises sovereign power respect admission arizona bar challenged conduct immune parker post also conceded members committee examinations admissions petitioners state officers concessions compelled decision bates think dispose ronwin contentions effort distinguish bates dissent notes arizona petitioner case named defendant respondent complaint respondent challenging conduct arizona parker brown simply inapplicable post dissent fails recognize precisely situation existed bates case arizona party named defendant complaining lawyers yet unanimous opinion concluded claims appellants bates state arizona real party interest adopted rules ultimate trier fact law enforcement process bates state bar arizona supra see supra core argument dissent ronwin challenged action committee arizona claim directed committee artificially reduce number lawyers arizona therefore committee assert sovereign antitrust immunity post emphasis original dissent acknowledge conspire might committee reduce number lawyers arizona arizona authority grant deny admission practice state bates arizona real party interest dissent largely ignores rules arizona summary commands suggests dissent apparently prefers address arizona established committee sole purpose examining recommending applicants admission bar rule rules provided examination admission applicants shall conform rule committee shall examine applicants recommend qualified applicants two examinations held year ibid rule vi amended xxxii emphasis added rules also specified subjects tested required committee submit grading formula advance examination rule vii amended xxxii safeguard disappointed applicant accorded right seek individualized review filing petition directly ronwin unsuccessfully pursuant rule xii ronwin filed complaint contained plethora charges including substance complaint case denied petition well two petitions rehearing see supra thus state action explicitly rejecting ronwin claim finally case law well rules makes clear arizona made final decision applicant see supra unlike actions virginia state bar goldfarb actions committee governed rules rules carefully reserve authority make decision admit deny decision critical state action see bates page opinion therefore also wholly consistent reasoning lafayette louisiana power light community communications boulder holding derived directly reasoning parker bates cases unmistakably hold action complained failure admit ronwin bar state action exempt antitrust liability regardless state motives taking action application standard facts case requires reverse judgment appeals reasoning adopted dissent allow sherman act plaintiffs look behind actions state sovereigns base claims perceived conspiracies restrain trade among committees commissions others necessarily must advise sovereign holding emasculate parker brown doctrine example state legislature enacted law based studies performed advice given advisory committee dissent find state exempt sherman act liability committee party dissatisfied new law circumvent doctrine alleging committee advice reflected undisclosed collective desire restrain trade without knowledge legislature plaintiff certainly survive motion dismiss even summary judgment despite fact suit falls squarely within class cases found exempt sherman act liability parker summary case turns narrow specific issue denied ronwin admission arizona bar dissent argues effect since order record denial must action committee argument ignores incontrovertible fact law arizona state authority admit deny admission practice law function committee grant deny admission bar power rests solely application burke see supra conclude district properly dismissed ronwin complaint failure state claim upon relief granted therefore judgment appeals reversed footnotes procedure arizona unique state recent years burgeoning number candidates admission practice law increased complexity subjects must tested combined make grading administration bar examinations burdensome task result although highest state retains ultimate authority granting denying admission bar courts delegated subordinate committee responsibility preparing grading administering examination see klein leleiko mavity bar admission rules student practice rules parties disagree wording rules time ronwin took bar examination disagreement centers around effective date amendments promulgated petitioners contend amendments took effect ronwin took february bar examination ronwin submits became effective march ronwin concedes order amending rules provided amendments become effective january notwithstanding directive argues rev stat ann provided amendments rules may become effective days publication distribution since released amendments january ronwin submits earliest possible effective date march ronwin misread section applied rules regulated pleading practice procedure judicial proceedings state courts terms statute limit jurisdiction arizona establish terms admission practice law state see rev stat ann rule provided examination admission examination admission applicants membership state bar arizona shall conform rule purpose committee examinations admissions consisting seven active members state bar shall appointed committee shall examine applicants recommend admission practice applicants found committee necessary qualifications fulfill requirements prescribed rules board governors approved respecting examinations admissions consider recommendations either grant deny admission according ronwin complaint committee announced february examination passing grade test assigned grades using scaled scoring system system examinations graded first without reference grading scale thus examination assigned raw score based number correct answers committee converted raw score score scale zero establishing raw score deemed equivalent seventy see infra rule vii provided committee examinations admissions file thirty days examination formula upon bar examination results applied portions total examination results addition committee file thirty days examination proposed formula grading entire examination xxxii see supra application courtney may exercise inherent powers admit practice law without favorable action committee hackin lockwood find power grant deny admission vested solely arizona cert denied see also application burke rule xii provided applicant aggrieved decision committee refusing permission take examination upon record refusing permission take examination hearing substantial cause respect claimed failure award satisfactory grade upon examination may within days occurrence file verified petition review copy said petition shall promptly served upon chairman member committee committee shall within days service transmit said applicant file response petition fully advising committee reasons decision admitting contesting assertions made applicant said petition thereupon shall consider papers filed together petition response make order hold hearings give directions may discretion deem best adapted prompt fair decision rights obligations applicant judged light committee obligation public see qualified applicants admitted practice attorneys law arizona rules instructed committee give two examinations year one july one february xxxii also alleged committee violated constitutional rights refusing grades released provide questions answers portion examination rule xii provides respect petition aggrieved applicant arizona shall consider petition response hold hearings give directions may discretion deem best adapted prompt fair decision xxxvi ronwin makes claim failed comply rules although course disagrees judgment denying petition thus denial petition must construed consideration rejection arguments made petition including ronwin claim sherman act violated also named defendants petitioners spouses arizona state bar district dismissed suit defendants appeals affirmed dismissal ronwin state bar arizona ronwin challenged aspect appeals opinion conditional certiorari denied ronwin hoover averment sherman act violation ronwin complaint follows aforesaid conduct scoring system formula see supra defendants entered conspiracy combination intended result restraint trade commerce among several artificially reducing numbers competing attorneys state arizona consequence said conduct plaintiff among artificially prevented entering competition attorney state arizona thereby deprived right compete attorney legal business deriving involving several including arizona app district also denied ronwin motion requesting trial judge recuse appeals held district abused discretion denying motion declined review finding ronwin hoover supra community communications boulder california retail liquor dealers assn midcal aluminum new motor vehicle board california orrin fox lafayette louisiana power light appeals also held district give ronwin opportunity show petitioners actions sufficiently affected interstate commerce fall within jurisdiction sherman act petitioners seek review holding case present issue whether governor state stands position state legislature purposes doctrine ronwin dispute regulation bar sovereign function arizona bates state bar arizona noted regulation activities bar core state power protect public likewise goldfarb virginia state bar stated interest regulating lawyers especially great since lawyers essential primary governmental function administering justice historically officers courts see also griffiths professions close core state power protect public trade profession essential primary governmental function administering justice ronwin complaint see supra focuses grading formula means used restrain competition describes follows defendants grade zero one hundred scale rather used raw score system raw scores known defendants picked particular raw score value equal passing grade seventy thereby number bar applicants receive passing grade depended upon exact raw score value chosen equal seventy rather achievement bar applicant standard app addition raw scores number correct answers ets reports scaled score applicant series tests mbe intended measure levels competence important standardized score represents level competence test test raw score dependable purpose since level difficulty varies test test possible draft two tests exactly level difficulty scaled scores obtained reusing questions earlier tests standardized statistical analysis scores reused questions determines many points added subtracted raw score provide applicant scaled score thus particular scaled score represents level competence examination examination although appeals recognized similarity case bates found facts goldfarb virginia state bar supra analogous reliance goldfarb misplaced dissent judge ferguson noted goldfarb involved procedures approved state state legislature contrast petitioners performed functions required rules effective unless approved rule arizona provided duties obligations members bar shall prescribed code professional responsibility american bar association following petitioners request rehearing appeals parties debated whether extent committee complied rule purposes determining application doctrine sufficient rules contained enforceable provision calling submission grading formula moreover rules contained review procedure allowed aggrieved applicant bring attention failure committee comply filing requirements rule vii record reveals ronwin fact alleged petition review arizona committee filed grading formula within time provided rule rejected petition see supra procedure allowed disappointed applicant challenge substantial cause committee decision claimed failure award satisfactory grade rule xii noted ronwin took full advantage rule xii challenge action committee see supra however challenge particular grade assigned answers solicitor general behalf amicus contends recent opinion community communications boulder precludes finding committee action attributable arizona contrary solicitor general suggestion reasoning boulder supports conclusion reach today boulder reiterated analysis justice brennan opinion lafayette louisiana power light noted doctrine grounded concepts federalism state sovereignty stated parker confer immunity automatically municipalities actions municipality state holding boulder municipalities may eligible immunity extent ac pursuant clearly articulated affirmatively expressed state policy see also lafayette supra opinion brennan consistent reasoning boulder decision today rests conclusion conduct ronwin complains clearly action state bates explicit authority conclusion holding petitioners conduct exempt liability sherman act precludes need address petitioners contention immune liability doctrine see mine workers pennington eastern railroad presidents conference noerr motor freight also address ronwin contention arizona method limiting bar admissions violates fifth fourteenth amendments ronwin concedes made argument first time response petitioners motion rehearing appeals failure raise issue timely manner precludes consideration authority arizona determine shall admitted bar procedure even clearly defined role bates case state bar committee members appointed expressly accept reject committee actions arizona law responsibility admit deny admission practice law certainly assume arizona exercise specifically reserved power rules invariably agrees committee even however action sovereign even committee members decided grade strictly grading formula approved purpose reducing total number lawyers admitted practice knew approved number applicants definitive action nothing doctrine antitrust law permits us question motives sovereign action dissent recites provisions rules regulating composition origin committee notes rules require committee recommend qualified applicants post dissent mention however several critical provisions summarized text infra articulate arizona intent retain full authority responsibility bar admissions process dissent post advanced theory relevant state action state denial ronwin postexamination petitions filed emphasis supplied dissent inaccurate holding based direct participation every stage admissions process including retention sole authority admit deny critical action case decision deny ronwin admission bar dissent suggestion arizona never made decision simply ignores arizona law arizona stated several occasions committee makes decision admit deny admission applicants application burke stated function committee grant deny admission bar power rests solely committee bounden duty put red flag applicants substantial doubt doubt exists recommendation withheld applicant may feel questions raised character qualifications without substance case may apply directly admission final analysis judicial function duty resolving questions one way emphasis supplied committee fails recommend admission applicant may challenge committee conclusions original application direct committee show cause applicant refused favorable recommendation applicant petition committee response using independent judgment de novo determine whether necessary qualifications shown thus arizona repeatedly affirmed responsibility final decisionmaker admissions bar dissent relying absence record us specific order time ronwin admitted nevertheless us hold committee rather made final decisions admissions denials applicants took examination february dissent correct valid action respect took examination since arizona law committee independent power act ronwin complaint makes extreme averment certainly assume arizona failed discharge responsibility moreover noted supra ronwin claims specifically rejected true course framing examination questions particularly grading examinations involved exercise judgment discretion examiners discretion necessarily delegated arizona committee must unless state courts undertake grading rules arizona gave affirmative directions committee respect every nondiscretionary function reserving ultimate authority control number lawyers admitted arizona bar ronwin avers conspiracy limit number applicants admitted makes claim animus discriminatory intent respect ronwin apparently us believe grading examinations exact science separates qualified unqualified applicants ideally perhaps true law schools bar examining committees must identify grade students applicants fail pass setting passing grade adoption grading formula eliminate except multiple choice exams discretion exercised grader nature therefore grading examinations necessarily separate competent incompetent except roughly identify qualified practice law qualified best bar examination identify applicants qualified practice law less qualified justice stevens dissent ny possible claim challenged conduct state squarely foreclosed goldfarb virginia state bar post issue goldfarb sherman act challenge schedules maintained fairfax county bar association enforced virginia state bar goldfarb state law refer lawyers fees virginia rules direct state bar supply fee schedules approve fee schedules established state bar contrary directed lawyers controlled fee schedules thus even though state bar state agency concluded fairly said state virginia rules required anticompetitive activities either respondent evident provisions arizona rules case arises totally different circumstances although relevant legal principles dissent reliance goldfarb simply misreads decision case dissent relies boulder arguing clearly articulated affirmatively expressed state policy exist case post dissent overlooks boulder careful say action exempt antitrust scrutiny unless constitutes action state colorado sovereign capacity see parker unless constitutes municipal action furtherance implementation clearly articulated affirmatively expressed state policy see city lafayette thus unlike dissent justice brennan boulder careful distinguish action sovereign action taken subordinate body dissent also cites cantor detroit edison california retail liquor dealers assn midcal aluminum presenting situations analogous action arizona argument overlooks fundamental difference case several cases cited respondent cases necessary determine whether clearly articulated affirmatively expressed state policy challenged conduct state acting sovereign noted arizona acting sovereign capacity made final decision deny admission ronwin see supra amicus curiae brief national conference bar examiners points many bar admission processes like issue case see brief national conference bar examiners amicus curiae typically state ultimate decisionmaker committee board conducts examinations pursuant rules customary lawyers recognized standing integrity serve bodies usually public duty little compensation see duhl bar examiner handbook ed virtually significant percentage take bar examination fail pass see bar examination statistics bar examiner thus every year thousands aspirants like ronwin disappointed example year ronwin first took arizona bar examination applicants took bar examinations nationwide failed pass bar examiner national conference bar examiners amicus brief cautions affirmance appeals case well invite numerous suits answer say course suits likely frivolous ronwin failed bar litigating claim decade basis complaint basically challenges motive arizona committee claim grading formula devised purpose limiting competition allegation sufficient survive motion dismiss examining boards committees bear substantial discovery litigation burdens attendant particularly upon refuting charge improper motive see areeda antitrust immunity state action lafayette harv rev moreover ronwin brought suit damages sherman act threat treble damages question threat sued damages particularly issue turns subjective intent motive deter able citizens performing essential public service see harlow fitzgerald view action challenged ronwin state motive committee recommendations immaterial nevertheless think particularly view decision consequences affirmance understood consequences reversal today limited effect attention drawn trade profession licensing members determined directly sovereign state justice stevens justice white justice blackmun join dissenting london bakers guild regulated economics craft quality product year adjudged one richard de lughteburghe punishment hurdle sold certain loaves bread london bread baked suthwerke rather london loaves proper weight thus richard violated guild restriction designed protect economic interests local bakers well restriction designed protect public purchase inferior products centuries common law restraint trade concerned restrictions entry particular professions occupations case suthwerke baker illustrates restrictions imposed medieval english guilds served two important quite different purposes guilds limited number persons might engage particular craft order sure enough work available enable guild members earn adequate livelihood also protected public ensuring apprentices journeymen master craftsmen skills required work numerous occupations today licensing requirements may serve either broad purposes medieval guild restrictions risk private regulation market entry prices output may designed confer monopoly profits members industry expense consuming public central concern development common law restraint trade antitrust jurisprudence time risk free market may adequately protect public purveyors inferior goods services provided legitimate justification public regulation entry wide variety occupations private regulation generally proscribed antitrust laws public regulation generally consistent antitrust policy potential conflict arises however whenever government delegates licensing power private parties whose economic interests may served limiting number competitors may engage particular trade fact private parties used licensing advance interests restraining competition expense public interest see generally gellhorn abuse occupational licensing chi rev potential conflict antitrust laws may avoided either two ways state may formulate governing standards administer procedures determine whether particular applicants qualified state governs entry profession evils associated giving power market stand benefit inhibiting entry market absent reason state action kind even specifically designed control output regulate prices violate antitrust laws parker brown alternatively state may delegate private parties authority formulate standards determine qualifications particular applicants authority delegated stake competitive conditions within market risk public power exercised private benefit minimize risk state policies displacing competition must clearly affirmatively expressed must appropriately supervised see community communications boulder california retail liquor dealers assn midcal aluminum case respondent unable obtain license practice law arizona alleges doubts competence lawyer petitioners engaged anticompetitive conspiracy used arizona bar examination artificially limit number persons permitted practice law state petitioners claim alleged conspiracy actionable sherman act represents decision state petitioners identify state body decided public interest limit entry even fully qualified persons arizona bar indeed conspiracy alleged product regulatory scheme evidence criterion except competence adopted arizona basis granting licenses practice law conspiracy respondent alleged private market participants allegedly attempting protect competitive position misuse powers yet holds conspiracy cloaked state immunity antitrust laws judgment competitive ideal sherman act may easily escaped petitioners members arizona committee examinations admissions arizona established committee recommend applicants admission arizona bar consists seven members state bar selected list nominees supplied arizona state bar association board governors petitioners administered bar examination respondent took failed complaint respondent alleged scores candidate known petitioners selected particular score equal passing grade complaint alleges petitioners adjust grading formula order limit number persons enter market compete members arizona bar manner respondent artificially prevented entering competition attorney state arizona arizona instructed petitioners recommend admission bar applicants receive passing grade general examination found otherwise qualified indication criterion competence appropriate rules regulating admission bar indeed respect respondent application admission arizona wrote practice law privilege right conditioned solely upon requirement person necessary mental physical moral qualifications application ronwin cert denied short one looks vain arizona law petitioners briefs pronouncements arizona articulation policy beside admitting competent attorneys practice arizona thus respondent challenge state policy contests neither decision license wish practice law decision require certain level competence measured bar examination precondition licensing instead challenges alleged decision exclude even competent attorneys practice arizona order protect interests arizona bar often reiterated cases involve sufficiency pleading federal may dismiss complaint failure state claim unless appears beyond doubt even complaint liberally construed plaintiff prove set facts entitle relief allegations complaint must taken true purposes decision pleadings judge reading complaint kind understandably somewhat skeptical seems highly improbable members profession entrusted state public obligation administer examination system measure applicants competence betray trust secretly subvert system serve private ends nevertheless probability respondent prevail trial justification dismissing complaint indeed may appear face pleadings recovery remote unlikely test scheuer rhodes purport justify dismissal complaint reference low probability respondent prevail trial instead substantially broadens doctrine antitrust immunity using elephant gun kill flea ii respondent challenging restraint trade imposed sovereign case governed parker brown held sherman act apply sovereign acts see points arizona exercises sovereign power respect admission arizona bar hence challenged conduct immune parker ante majority conclusion challenged action arizona however plainly wrong respondent alleged decision place artificial limit number lawyers made petitioners state contention petitioners made decision direction behest petitioner named defendant respondent complaint unlike petitioners suggested arizona played part establishing grading standards bar examination made independent decision admit reject individual applicant admission bar respondent challenging conduct arizona parker simply inapplicable possible claim challenged conduct state squarely foreclosed goldfarb virginia state bar antitrust action brought challenging schedules published county bar association enforced state bar pursuant mandate virginia regulate practice law state acknowledging state bar state agency enforced schedules pursuant authority granted state stated simple test antitrust immunity threshold inquiry determining anticompetitive activity state action type sherman act meant proscribe whether activity required state acting sovereign need inquire question fairly said state virginia rules required anticompetitive activities either respondent respondents pointed virginia statute requiring activities state law simply refer fees leaving regulation profession virginia although ethical codes mention advisory fee schedules direct either respondent supply require type price floor arose respondents activities emphasis supplied citations omitted instant case challenged restraint affirmative command arizona rules disciplinary rule ultimate body wielding state power practice law see ariz art bailey thus restraint compelled direction state acting sovereign omitted fact state bar state agency limited purposes create antitrust shield allows foster anticompetitive practices benefit members state bar providing deviation county bar minimum fees may lead disciplinary action voluntarily joined essentially private anticompetitive activity posture claim beyond reach sherman act footnotes citation omitted goldfarb therefore made clear purposes parker doctrine every act state agency state sovereign lafayette louisiana power light plurality opinion rather anticompetitive actions state instrumentality compelled state acting sovereign immune antitrust laws see also opinion burger cantor detroit edison opinion burger antitrust attack falls parker challenges decision sovereign decision state bar indisputably sovereign see california retail liquor dealers assn midcal aluminum decision sovereign arizona attacked conspiracy petitioners neither compelled directed sovereign stake since claim directed petitioners artificially reduce number lawyers arizona petitioners utilize sovereign antitrust immunity iii course true arizona delegated petitioners task administering bar exam retained authority review revise action taken petitioners however neither factors sufficient accord petitioners immunity sherman act bates held state bar restrictions attorney advertising qualified antitrust immunity state policy requiring anticompetitive restraint part comprehensive regulatory system one clearly articulated affirmatively expressed state policy state policy actively supervised state lafayette plurality opinion omitted since adopted principle expressed plurality opinion lafayette anticompetitive restraints engaged state municipalities subdivisions must clearly articulated affirmatively expressed state policy order gain antitrust exemption community communications boulder quoting midcal nothing approaching clearly articulated affirmatively expressed state policy favoring artificial limit number lawyers licensed practice arizona indeed majority attempt argue petitioners satisfy test articulated policy found arizona law competent lawyers admitted practice indeed policy petitioners articulate agreement type alleged respondent complaint entirely unrelated clearly articulated affirmatively expressed policy arizona arizona may permitted petitioners grade score respondent bar examination parker indicates state give immunity violate sherman act authorizing violate declaring action lawful arizona may permit challenged restraint hardly required consequence affirmatively expressed clearly articulated policy said state provision permitted require municipalities adopt challenged restraint competition applies fully lainly requirement clear articulation affirmative expression satisfied state position one mere neutrality respecting municipal actions challenged anticompetitive state allows municipalities please hardly said contemplated specific anticompetitive actions municipal liability sought acceptance proposition general grant power enact ordinances necessarily implies state authorization enact specific anticompetitive ordinances wholly eviscerate concepts clear articulation affirmative expression precedents require boulder emphasis original iv conclusion enough alleged complaint survive motion dismiss warrant conclusion respondent likely prevail trial even case likely survive motion summary judgment perfectly clear admissions policy described arizona rules offend sherman act examination procedure place significant barrier entry profession moreover significant measure discretion must employed administration testing procedures yet ensuring competent licensed serve public entirely consistent sherman act see goldfarb concerned danger thousands aspirants fail pass bar examinations every year affirmance appeals case well invite numerous suits questioning bar examiners motives fears burdens discovery trial threat treble damages deter able citizens performing essential public service ante submit unduly alarmed denial antitrust immunity case necessarily pose realistic threat liability even prolonged litigation respondent must first produce sufficient evidence petitioners indeed abused public trust survive summary judgment task doubt prove formidable moreover petitioners motives necessarily relevant respondent case proof demonstrates petitioners adopted reasonable means regulating admission arizona bar basis competence respondent unable show requisite adverse effect competition even subjective motivation one bar examiners tainted sinister indeed even respondent show arbitrarily denied admission bar reasons unrelated qualifications unless also show occurred part anticompetitive scheme antitrust claim fail event true irony reliance concerns essence suggesting special protective shield provided lawyers unlike bakers engineers members craft may sufficient confidence ability legal system identify reject unmeritorious claims willing assume ordinary risks litigation associated performance civic responsibilities share fear administration bar examinations lawyers survive scrutiny associated rather ordinary litigation persons walks life expected endure also doubt believes lawyers least leaders bar asked serve bar examiners always faithful fiduciary responsibilities though agree presumption indeed strong one nothing sweeping language sherman act justifies carving rules lawyers inapplicable profession goldfarb specifically rejected parochialism indeed argument unwise unnecessary require petitioners comply sherman act simply attack upon wisdom longstanding congressional commitment policy free markets open competition embodied antitrust laws boulder ignore commitment today denial antitrust immunity case hardly leave state helpless cope felt exigencies wish arizona remains free give petitioners affirmative direction engage precise conduct respondent alleged antitrust laws hardly create inescapable burdens state simply require decisions displace free market made overtly public officials subject public accountability rather secretly course conspiracy involving representatives private guild accountable public indirectly see lafayette plurality opinion national policy favor competition thwarted casting gauzy cloak state involvement essentially private arrangement midcal practical concerns identified pale compared principle govern decision case rule law applies case applicable countless areas economy arbitrary restraints entry may impose costs consuming public antitrust laws designed avoid experience administration sherman act demonstrated real risk private associations purport merely regulate professional standards may fact use powers restrain competition threatens members little short irresponsible tear gaping hole fabric antitrust law simply may confident respondent unable prove alleges frivolous cases treated exactly occasions fundamental shifts legal doctrine legal system developed procedures speedily disposing unfounded claims inadequate protect petitioners vexatious litigation something wrong procedures law antitrust immunity body law simply permit sherman act displaced neither state legislature state expressed desire preclude application antitrust laws conduct stand benefit restraints trade healthy respect state regulatory policy require immunizing abuse public trust thin veneer state involvement insufficient justification casting aside competitive ideal sherman act commitment free markets open competition evolved centuries embodied sherman act sturdy enough withstand petitioners flimsy claim claim might merited support guilds today accorded punishment hurdle respectfully dissent riley memorials london london life xiiith xivth xvth centuries punishment described eing drawn hurdle principal streets city principal reason existence gild preserve members monopoly trade one gild merchant town buy sell except conditions imposed gild foreigners coming countries traders english towns prohibited buying selling way might interfere interest gildsmen must buy sell times places articles provided gild regulations cheyney introduction industrial social history england craft gilds existed usually authority town government though frequently obtained authorization even charter crown formed primarily regulate preserve monopoly occupations town gild merchant existed regulate trade town general one carry trade without subject organization controlled trade professor handler pointed entry various fields endeavor guarded numerous licensing restrictions licenses demanded physicians surgeons dentists optometrists pharmacists druggists nurses midwives chiropodists veterinarians certified public accountants lawyers architects engineers surveyors shorthand reporters master plumbers undertakers embalmers real estate brokers junk dealers pawnbrokers ticket agents liquor dealers private detectives auctioneers milk dealers peddlers master pilots steamship engineers weighmasters forest guides motion picture operators itinerant retailers boats employment agencies commission merchants farm produce manufacturers frozen desserts concentrated feeds commercial fertilizers factory cannery place public assembly laundry cold storage warehouse shooting gallery bowling alley billiard parlor place storage explosives operated industrial house work carried without registration license licenses also required sale minnows use fishing nets operation educational institutions correspondence schools filling stations motor vehicles motion pictures exhibited unless licensed canal boats must registered handler cases materials trade regulation footnotes omitted sup rule see app sup rule viii petitioners certainly suggest existence criterion arizona law contrary oral argument expressly acknowledged state policy adopting criterion competence admission bar tr oral arg see mcclain real estate bd new orleans lake country estates tahoe regional planning agency hospital building trustees rex hospital scheuer rhodes conley gibson see hughes rowe per curiam cruz beto per curiam california motor transport trucking unlimited jenkins mckeithen plurality opinion walker process equipment food machinery chemical see bates state bar arizona noted petitioners advance imaginative argument decision rests examination procedure merely advisory arizona made final decision applicant ante omitted presumably petitioners familiar procedures work shows precious little deference administrative expertise analysis facts surprising petitioners must practice arizona advance theory relies challenged conduct actually conduct arizona surely understand rather subordinate see also new motor vehicle board california orrin fox cantor detroit edison response dissent advanced theory relevant state action state rejection original complaint filed containing plethora charges including substance complaint case ante see also ante presumably complaint simply deficient matter state law allegations respondent current complaint taken true fact respondent failed bar examination provided adequate ground dismissal respondent complaint without review respondent allegations even case arizona reviewed petitioner complaint merits indicate declined exercise power revision respect petitioners alleged anticompetitive policies far different required petitioners adopt policies first place goldfarb requires argues nly arizona authority grant deny admission practice state ante omitted therefore concludes challenged conduct allegation challenged policy adopted permitted accepting recommendations petitioners yet bates goldfarb make clear challenged policy must required sovereign fact retained power disapprove examination procedure adopted petitioners different fact virginia retained power disapprove fee schedules set bar association goldfarb similar powers revision held insufficient justify immunity lafayette cantor midcal majority disavowal note quite unequivocal points opinion see ante ultimate statement holding see ante seem rely denial respondent petition review truly critical majority follow individual respondent position file petition review able mount antitrust challenge free immunity barrier majority erects indeed easy escape majority holding holding protect bar examiners parade horribles discussed majority ante cases cites ante involve instances applicant passed bar examination nevertheless recommended admission applicant seeks judicial review cases indicate decide whether admit applicant however none cases indicates makes independent decision indeed decision deny application person failed bar examination see also midcal new motor vehicle board california orrin fox see also cantor detroit edison opinion burger cantor wrote respondent maintain program without approval commission may abandon without approval nevertheless doubt option program primarily respondent commission indeed respondent initiated program years regulatory agency even created nothing unjust conclusion respondent participation decision sufficiently significant require conduct implementing decision like comparable conduct unregulated businesses conform applicable federal law accordingly even though may cases state participation decision dominant unfair hold private party responsible conduct implementing record discloses unfairness footnotes omitted petitioners appear abandoned argument advanced first time petition rehearing appeals examination grading formula actually approved state majority appears revive abandoned contention ante see also ante necessary address though requires brief reference appeals opinion defendants contend first time rehearing committee grading formula submitted reviewed accepted response ronwin tendered purports letter committee filed february pursuant rule vii ronwin alleges committee scored examination admit number applicants letter advise accordingly letter presented us constitutes submission basis clearly articulated affirmatively expressed state policy although dismissal might proper facts defendants argue first time rehearing facts never brought district attention dismissal therefore improper basis information district ronwin state bar arizona see generally arizona maricopa county medical society national society professional engineers majority makes rather surprising suggestion principles discussed advise state legislatures legislation restrains competition sued sherman act ante persons course complete defense since case delegated power used restrain competition hence liable restraint impose moreover sherman act protects right seek favorable legislation even reason injure competitors see california motor transport trucking unlimited eastern railroad presidents conference noerr motor freight majority focus cases surely reflects weakness position respect case order preserve secrecy bar examination questions test must vary year year test given may become apparent anticipated passing grade adjusted order provide roughly measure competence used prior years thus respondent burden proving conspiracy alleged requires far evidence petitioners exercised discretion setting passing grade results known conspiracy respondent alleged proved procompetitive justification plainly inconsistent goals sherman act thus petitioners claim antitrust immunity arises least defensible context general proposition anticompetitive activity must fall like potential harms outweigh benefits mean private activity treated alike former different fact state sanction figures powerfully calculus harm benefit example justification scheme lies protection health safety strength justification forcefully attested existence state enactment particularly strong justification exists scheme state effect substituted forces competition regulates private activity ends sought achieved sherman act thus anticompetitive scheme state institutes plausible ground improve performance market fostering efficient resource allocation low prices scarcely assailed cantor detroit edison blackmun concurring judgment see arizona maricopa county medical society american society mechanical engineers hydrolevel national society professional engineers silver new york stock exchange american medical assn fashion originators guild america ftc seems likely respondent claim proves insubstantial dealt manner claims means summary judgment perhaps coupled award attorneys fees also develop case unreasonably vexatiously brought see