Con Law Essay Flashcards
The Dormant Commerce Clause is a doctrine that
limits the power of states to legislate in ways that impact interstate commerce.
If Congress has not enacted legislation in a particular area of interstate commerce, then the states are free to regulate, so long as the state or local action does not: (3)
- discriminate against out-of-state commerce
- unduly burden interstate commerce
- regulate extraterritorial (wholly out of state) activity
A state or local regulation discriminates against out-of-state commerce if it
protects local economic interests at the expense of out-of-state competitors
When determining if a state regulation imposes an undue burden on interstate commerce, the courts will balance, case-by-case, the
objective and purpose of the state law against the burden on interstate commerce and evaluate whether there are less restrictive alternatives
If a state or local regulation is discriminatory on its face or in practice, then the regulation may be upheld if the state or local gov can establish that (2)
- an important local interest is being served
- no other nondiscriminatory means are available to achieve that purpose
If the state is a market participant, it may favor
local commerce or discriminate against nonresident commerce as could any private business