Ch 15 Flashcards
What 4 areas require analysis under the commerce clause?
1 regulation of foreign commerce
2 regulation of interstate commerce
3 impact on interstate commerce
4 possible limitations of federal regulatory authority
From a historical perspective, what has the commerce clause done 4 things?
1 creates 1 nation w/ means to facilitate business
2 demonstrates growth of fed. Gov’s powers over time
3 restricts regulatory powers of state/local gov
4 places limits of fed. Gov. Regulating business
Commerce clause: regulation of foreign commerce
2) how does this apply to state/local governments?
Fed government has right to regulate, restrict or limit
Foreign commerce
State and local Gov’s may not do this (unless foreign
Commerce is entirely within state boundaries)
Commerce clause: Regulation of interstate commerce
States can’t impede interstate commerce, only the federal
Government can
Police powers
Authority of state and local governments
What 4 items are required to be protected by police powers under state legislation and regulation?
1 public’s health
2 safety
3 morals
4 general welfare
Dormant commerce clause concept
State regulations must not be arbitrary, capricious or
Unreasonable
Dual regulation: federal preemption
When federal statute preempts area of regulation any
State or local law pertaining to subject matter is
unconstitutional + void
Dual regulation: no preemption
Situations where federal regulation of subject matter is
Not comprehensive enough to preempt field
So state regulation is permitted
Irreconcilable conflicts
Exist when it isn’t possible for business to comply with both
Statutes
Undue burdens
Found if burdens clearly exceed local benefits
Undue burdens are disallowed by the commerce clause
Dual regulation: no federal regulation
State regulation of interstate commerce is permissible
When there’s no federal regulation
Providing no discrimination in favor of local business and
No undue burdens
The commerce clause also has been construed as
Prohibiting discrimination…
Against interstate commerce in favor of intrastate commerce
Apportionment formulas
Allocate the tax burden of an interstate business among
States entitled to tax it
Nexus
To justify tax there must be sufficient contact, connection, tie or link between the business and taxing state