Reference no: EM131470408

Question: Arbitrary and Capricious Test. Lion Raisins, Inc., is a family-owned, family-operated business that grows and markets raisins to private enterprises. In the 1990s, Lion also successfully bid on more than fifteen contracts awarded by the U.S. Department of Agriculture (USDA). In May 1999, a USDA investigation reported that Lion appeared to have falsified inspectors' signatures, given false moisture content, and changed the grade of raisins on three USDA raisin certificates issued between 1996 and 1998. Lion was subsequently awarded five more USDA contracts. Then, in November 2000, the company was the low bidder on two new USDA contracts for school lunch programs. In January 2001, however, the USDA awarded these contracts to other bidders and, on the basis of the May 1999 report, suspended Lion from participating in government contracts for one year. Lion filed a suit in the U.S. Court of Federal Claims against the USDA, seeking, in part, lost profits on the school lunch contracts on the ground that the USDA's suspension was arbitrary and capricious. On what reasoning might the court grant a summary judgment in Lion's favor? [Lion Raisins, Inc. v. United States, 51 Fed.Cl. 238 (2001)]