Commerce Power Flashcards
Commerce Clause
Article I, §8: Congress shall have the power to regulate Commerce among the several States
Gibbons v. Ogden (1824) J. Marshall
Expansive view of commerce: As long as Congress acts w/in scope of commerce power, not unconstitutional under 10th Amendment.
NY legislature gave monopoly to Ogden in NY. Gibbons operated competing ferry service with federal license. Who wins?
FED LAW
U.S. v. EC Knight Co. (1895) J. Fuller
direct v. indirect effects test
Sherman Act prohibits monopolies in commerce between states. Does this activity have direct or indirect effect on interstate commerce?
Holding: Congress can’t regulate manufacturing. Monopoly here was production of sugar, not in its commerce. Relationship between monopoly and commerce was too indirect to fall under commerce power.
Carter v. Carter Coal (1936) J. Sutherland
production isn’t commerce
Can’t regulate wages b/c labor provisions are part of production, not commerce
BCCA wanted to regulate hours/wages in coal mines.
Holding: Coal Conservation Act is unconstitutional because production is local activity
Only has indirect effect on commerce – not strong enough relation between activity & commerce
Shreveport Rate Case - Texas Railway Co. v. U.S. (1914) J. Hughes
“among the states”
Can Congress regulate intrastate railroad rates, if the rates discriminated against interstate railroads? Yes b/c extends to interstate.
Holding: Congressional authority extends to state carriers b/c there is a “close & substantial relation” to interstate traffic. Congress has legitimate interest in ensuring interstate RR stays in business
Swift v. U.S.
stream of commerce test
Expectation that cattle are likely to cross state lines means they are in stream of commerce.
Sick Chicken Case - Schechter Poultry v. U.S. (1935) J. Hughes
“direct” economic effect
National Industrial Recovery Act, key part of New Deal legislation, authorized Congress to approve codes of fair competition for trade/industry (typically minimum wage, max hours).
Holding: Federal law unconstitutional b/c insufficient “direct” effect on interstate commerce
Law wasn’t regulating transactions in interstate commerce, but operation of business in NY– fed gov’t can’t regulate wages/hours of employees in internal commerce of a state
Railroad Retirement Board v. Alton RR (1935) J. Roberts
Court declared RR Retirement Act unconstitutional - Congress can’t establish compulsory retirement & pension plan b/c not related to interstate commerce (even though RR are part of it)
Child Labor Case – Hammer v. Dagenhart (1918) J. Day
zone of activities
Even if activity is interstate commerce and exercised under taxing or spending power, Congress can’t regulate if it intrudes into zone of activities reserved to states.
Challenge to law that barred transportation in interstate commerce of goods produced in factories employing young children.
Holding: Congress can’t intrude on production. Draws distinction between commerce & production – this is about regulating morality, NOT commerce. Law controlled production, even though goods were in interstate commerce.
Gov’t argues that this will impact national market – goods produced w/ child labor less $
Court says that is too far-reaching: States have authority, through police power, to regulate local trade and manufacture
Lottery Case – Champion v. Ames (1903) J. Harlan
national police regulations
Can Congress prohibit transporting lottery tickets across state lines (rather than regulate)? Yes
Holding: Power to regulate commerce includes prohibiting items from being interstate commerce
Lottery tickets are subjects of traffic and therefore subjects of commerce
10th Amendment: Congress can use commerce power to regulate morality (lottery tickets)
Hipolite Egg Co. v. U.S.
police regulations can be w/in commerce
Label of preserved eggs didn’t disclose ingredient. Court held this is w/in commerce, confiscation is appropriate to bar them from interstate commerce
Hoke v. U.S.
Court upheld Mann Act to prohibit women transported interstate.
NLRB v. Jones & Laughlin Steel Corp. (1937) CJ. Hughes
new definition of commerce
Intrastate activities can affect interstate → chain of
production
National Labor Relations Act - employees right to bargain collectively, forbid unfair labor practices
Holding: Court held Act was constitutional b/c it is the effect on commerce, not the source of injury, that must meet criteria of “interstate” commerce
- )National labor unions have big effect on national commerce
- )When intrastate activities directly affect interstate activities, falls w/in Congress power – allow employees engaged in production, industry is organized on national scale & thus effect nationally
U.S. v. Darby (1941) J. Stone
radical shift in commerce power
Production is NOT entirely state activity, 10th A not basis to invalidate federal laws
Lumber manufacturer challenges Fair Labor Standards Act, which provides for minimum wages/hours for employees involved in commerce of goods
Holding: Court held act was constitutional as long as w/in scope of Congress’s power. Shipment of manufactured goods interstate is interstate commerce.
Overruled Child Labor Case (Dagenhart) & rejected view that 10th Amend limits Congress’s powers
Wickard v. Fillburn (1942) J. Jackson
solidified new view on commerce clause, “cumulative effects”
Cumulative effects → w/in commerce power
Fillburn challenged AAA quota for wheat production.
Holding: Wheat industry is national problem & regulation of price accomplished by limiting supply. Cumulative effect of home-grown wheat on wheat in national commerce would have substantial effect
Civil Rights Cases: Now using Commerce Clause to address morality in business
