Also known as:purpose & effect · purpose-and-effect · purpose/effect · purpose-effect test
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
in separation of powers
A congressional action has the purpose and effect of altering the rights, duties, or legal relations of persons outside the legislative branch when it changes legal entitlements or obligations with the force of law. Such action constitutes an exercise of legislative power that must satisfy bicameralism and presentment under Article I.
2
Sense 1
1
in separation of powers
A congressional action has the purpose and effect of altering the rights, duties, or legal relations of persons outside the legislative branch when it changes legal entitlements or obligations with the force of law. Such action constitutes an exercise of legislative power that must satisfy bicameralism and presentment under Article I.
Sources & Authorities· 1 primary source
Select any source to read its text and confirm it supports the definition.
Cases
Sense 2
2
in contract law
The purpose and effect of a contract or term are examined together with its commercial setting to determine whether the agreement or clause is unconscionable. Courts consider these factors to decide whether to refuse enforcement or limit application of the term.
Sources & Authorities· 1 primary source
Select any source to read its text and confirm it supports the definition.
The purpose and effect of a contract or term are examined together with its commercial setting to determine whether the agreement or clause is unconscionable. Courts consider these factors to decide whether to refuse enforcement or limit application of the term.
Each sense below has its own examples, sources, and questions.
Practice Questions
Examples6
One-House Grant Cancellation
Helping Hands receives a federal grant under a statute allowing either chamber to cancel awards by resolution. The House passes a resolution revoking the grant after Helping Hands has begun using the funds. The resolution alters the nonprofit's legal entitlement to the money. Because the action changes rights outside Congress without bicameral passage or presentment, it exercises legislative power.
Amish Education Exemption
Wisconsin enforces compulsory schooling against Amish families whose religious practices require children to leave formal education after eighth grade. The state claims the exemption would advance religion. The exemption's purpose and effect are to permit the Amish community to continue its longstanding religious way of life rather than to sponsor or favor it. The accommodation therefore does not violate the Establishment Clause.
Wisconsin v. Yoder406 U.S. 205 (1972)
Nuisance Abatement Statute
A state law allows courts to shut down newspapers that regularly publish scandalous material. The statute's stated goal is protecting public morals, yet its operation targets only certain publishers. The purpose and effect of the law is prior restraint on expression rather than ordinary libel remedies. The measure therefore violates the First Amendment.
Near v. Minnesota ex rel. Olson283 U.S. 697 (1931)
Animal Sacrifice Ordinances
A city enacts rules banning ritual animal sacrifice while permitting other forms of animal killing for food or sport. The ordinances single out practices of one religious group. Their purpose and effect are to suppress religious conduct rather than to advance neutral health interests. The laws therefore fail strict scrutiny under the Free Exercise Clause.
Church of the Lukumi Babalu Aye, Inc. v. City of Hialeah508 U.S. 520, 113 S. Ct. 2217, 124 L. Ed. 2d 472 (1993)
Bias-Motivated Conduct Ban
A city ordinance prohibits cross burning and other symbols that arouse anger on the basis of race or religion. The law reaches only disfavored viewpoints. Its purpose and effect are content-based discrimination that cannot be justified by the asserted interest in preventing harm. The ordinance therefore violates the First Amendment.
R.A.V. v. City of St. Paul, Minnesota505 U.S. 377 (1992)
Student Publication Funding
A public university funds student newspapers but denies support to a religious journal on the ground that it promotes religion. The denial singles out religious speech for exclusion. The purpose and effect of the funding policy is viewpoint discrimination rather than neutral administration of a limited public forum. The policy therefore violates the First Amendment.
Rosenberger v. Rector and Visitors of the University of Virginia515 U.S. 819 (1995)
Frequently Asked1
How does a court determine whether a one-house resolution exercises legislative power?+
A court examines whether the resolution has the purpose and effect of altering the rights, duties, or legal relations of persons outside the legislative branch. If it does, the action is legislative and must satisfy bicameralism and presentment. Resolutions that merely oversee or implement existing law without changing external rights do not trigger these requirements.
Supporting sources
Restatements
Frequently Asked1
What makes a contract term unconscionable under the purpose-and-effect test?+
Courts assess the term's commercial setting, purpose, and effect to decide whether enforcement would be unfair. Relevant factors include weaknesses in the bargaining process and overlap with public-policy rules. When these elements show oppression or unfair surprise, the court may refuse to enforce the term or limit its application.
Supporting sources
462 U.S. 919, 954 n. 16, 103 S.Ct. 2764, 2785 n. 16, 77 L.Ed.2d 317Legislation and Regulation
…for the separation of powers. (b) Here, the action taken by the House pursuant to § 244(c)(2) was essentially legislative in purpose and effect, and thus was subject to the procedural requirements of Art. I, § 7, for legislative action. (c) The legislative veto is an invalid shortcut. It is not a valid exception to the general…