Congress’s Regulatory Powers: Federal Power to Regulate Interstate Commerce (before 1937) Flashcards
Article I, § 8, cl. 2
“The Congress shall have the power … to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”
Gibbins v. Ogden
Under the authority of the Commerce Clause and the Supremacy Clause, a state law governing interstate commerce may not govern when it conflicts with a law enacted by Congress.
RULING CASE
Gibbins v. Ogden
Issue
Whether a state law governing interstate commerce governs when it conflicts with a law enacted by Congress.
Gibbins v. Ogden
Facts
Two individuals gave Ogden license to operate a ferry between NYC and NJ. Congress gave Gibbons license to operate two steamboats in the same waters. Ogden got an injunction stopping Gibbons from using the waters.
Gibbins v. Ogden
Reasoning
Since commence necessarily has to depend on transporting goods, the Commerce Clause must give Congress power over transportation of goods between the states. Congress has no power over laws that govern intrastate commerce, but it has supreme power over interstate commerce because of both the Commerce clause and the Supremacy Clause. NY’s law governing interstate commerce is unconstitutional.
Gibbins v. Ogden
Holding
The injunction is reversed.
Kidd v. Pearson
Congress’s power to regulate interstate commerce does not extend to the manufacturing of goods.
Kidd v. Pearson
Facts
Iowa law severely restricting how liquor was made, and a manufacturer who intended to sell his goods challenged the law saying it affected interstate commerce.
Kidd v. Pearson
Reasoning
Commerce does not include the manufacturing of goods. If Congress had power over the manufacturing of goods, it would interfere with states’ rights to govern locally. While the state law might affect interstate commerce, the law doesn’t affect Congress’s power to regulate interstate commerce.
United States v. E.C. Knight
Congress may not use the Commerce Clause to regulate manufacturing.
United States v. E.C. Knight
Issue
Whether Congress may use the Commerce Clause to regulate manufacturing.
United States v. E.C. Knight
Facts
A sugar refinery company gained four other companies in Philadelphia. Congress tried to sue to break up the monopoly.
United States v. E.C. Knight
Reasoning
Manufacturing does not affect commerce directly. States have policing powers, not Congress. The companies were all in Philadelphia so this was a state matter.
Swift & Co v. US
Conduct must have a direct effect on interstate commerce to be regulated by the Commerce Clause
Swift & Co v. US
Issue
Whether conduct must have a direct effect on interstate commerce to be regulated by the Commerce Clause
Swift & Co v. US
Facts
Congress sued many meat processors for working together to control the price of meat.
Swift & Co v. US
Reasoning
The defendants were from different states and their actions had a direct effect on interstate commerce.
Hammer v. Dagenhart
Congress may not use its Commerce Clause power to control child labor.
This is no longer good law
Hammer v. Dagenhart
Issue
Whether Congress may use its Commerce Clause power to control child labor
Hammer v. Dagenhart
Facts
Hammer challenged an act that made it illegal to sell goods that were made by children in interstate commerce.
Hammer v. Dagenhart
Reasoning
Regulating child labor had no effect on interstate commerce. Also, regulating child labor is a local affair
Carter v. Carter Coal
Congress may not use the Commerce Clause to regulate purely local acts.
This was limited by later cases
Carter v. Carter Coal
Issue
Whether Congress may use its Commerce Clause power to regulate purely local acts
Carter v. Carter Coal
Facts
Congress enacted a law to regulate conditions in coal mines and provided tax rebates to encourage companies to comply. Carter sued his company to stop it from receiving the rebates.
Carter v. Carter Coal
Reasoning
The Commerce Clause does not give Congress the power to regulate manufacturing and production in individual states, and issues like wages, hours and organizing employees are local matters
The Shreveport Rate Cases
The Interstate Commerce Commission could set the prices for rail freight in Texas because its low rates were undercutting interstate rates, which affected interstate commerce.
