Commerce Clause Flashcards
Commerce Clause - generally
The Commerce Clause of the U.S. Constitution permits Congress to regulate any local or interstate activity that, either in itself or in combination with other activities, has an effect on interstate commerce.
What may Congress regulate under the Commerce Clause?
Under the Commerce Clause, Congress may regulate:
- the channels of interstate commerce;
- the instrumentalities of interstate commerce, as well as persons and things in interstate commerce; or
- activities that have a substantial effect on interstate commerce.
Commerce Clause standard of review for regulating intrastate activities
When Congress attempts to regulate intrastate activities, the Court will uphold the regulation if it involves economic or commercial activity as long as there is a conceivable basis for concluding that the activity in aggregate substantially affects interstate commerce.
State law and Commerce Clause - generally
A state may regulate local aspects of commerce (i.e., intrastate commerce), but state regulation that discriminates against or substantially burdens interstate commerce may be held invalid under the Supremacy Clause, because of Congress’s very broad plenary power to regulate interstate commerce under the Commerce Clause, unless Congress authorizes it. Congress may allow a state to adopt legislation that would otherwise be invalid as an unconstitutional burden on interstate commerce.
State economic protectionist statute - designed to protect in-state business from out of state competition
Under the Dormant Commerce Clause, the state may regulate local aspects of interstate commerce if such regulation is not in conflict with federal regulations and if:
1. the subject matter of the regulation does not require nationally uniform regulation;
2. the regulation does not discriminate against out of state competition to benefit local economic interests; and
3. it is not unduly burdensome (i.e., any incidental burden on interstate commerce of the nondiscriminatory regulation does not outweigh the legitimate local benefits produced by the regulation.
Laws that are designed to protect local business against interstate competition generally will be invalidated.
Commerce Clause - Dormant Commerce Clause general rule
State or local regulations that discriminate against interstate commerce to protect local economic interests are almost always invalid as violations of the negative implications of the Commerce Clause (Dormant Commerce Clause). For a regulation to discriminate against interstate commerce, it must treat economic interests from within the state differently from economic interests from outside the state. If a state law that treats local and out-of-state interests alike nonetheless burdens interstate commerce, it will be valid unless the burden outweighs the promotion of a legitimate local interest.
Commerce Clause - state law that discriminates against interstate commerce
Under the Dormant Commerce Clause, state or local regulations that discriminate against interstate commerce to protect local economic interests are almost always invalid. Discriminatory regulations are valid if they are necessary to achieve an important noneconomic state interest and here are no reasonable alternatives available. Regulations are discriminatory if they distinguish between in-state and out-of-state business or consumers. However, an exception exists for when states act as market participants. The Commerce Clause Does not prevent a state from preferring its own citizens when the state is buying or selling goods or services.
Regulation of foreign commerce
Regulation of foreign commerce is exclusively a federal power because of the need for the federal government to speak with one voice when regulating commercial relations with foreign governments. The existence of legitimate state interests underlying state legislation will not justify state regulation of foreign commerce.
