What is the meaning of arbitrary act? An arbitrary or capricious act is "one which is willful and unreasonable, without consideration and in disregard of facts or circumstances in the case." State Bd. of Tax Comm'rs v. South Shore Marina, 422 N.E.2d 723, 727 (Ind. Ct. App. 1981). See also Bailey Seed Farms, Inc. v. State Bd. of Tax Comm'rs, 542 N.E.2d 1389, 1391 (Ind. Tax Ct. 1989) (stating that an act is arbitrary or capricious when it "is without some basis which would lead a reasonable and honest person to the same conclusion as the agency").