In McDonough v. Goodcell (1939) 13 Cal.2d 741, the factual background of the dispute was that the California Legislature had, by statute, conferred upon the Insurance Commissioner the duty to ascertain and determine the qualifications of an applicant for a permit to conduct a bail bond business; the statute in question was a newly enacted licensing law. Petitioners, long in the bail bond business, made application for a permit, and public hearings were held. The permit was denied, and petitioners sought judicial review. In affirming the administrative action, the California Supreme Court stated that "it is the settled general rule of law in this state that where the legislature has by statute clothed an administrative officer with power to ascertain the facts with reference to the fitness of an applicant for a permit to engage in a business subject to regulation under the police power and has vested in such officer the discretion, based on the facts ascertained, to grant or deny a permit to engage in such business the courts will not interfere with the exercise of such discretion except in the case of an abuse thereof." ( Id. at p. 748.) The McDonough court proceeds to state that one form of discretionary abuse -- arbitrary action -- would occur "in the event there was no sufficient factual basis for the administrative conclusions." ( Id. at p. 749.) Applying the rule that judicial review was concerned with the existence of substantial evidence before the administrative agency, whether there were conflicts in that evidence or not, the McDonough court upheld the determination made by the Insurance Commissioner.