Congress’s Regulatory Powers: Federal Power to Regulate Interstate Commerce (before 1937)

Question 1

Article I, § 8, cl. 2

Answer 1

“The Congress shall have the power … to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.”

Question 2

Gibbins v. Ogden

Answer 2

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

Question 3

Gibbins v. Ogden

Issue

Answer 3

Whether a state law governing interstate commerce governs when it conflicts with a law enacted by Congress.

Question 4

Gibbins v. Ogden

Facts

Answer 4

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.

Question 5

Gibbins v. Ogden

Reasoning

Answer 5

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.

Question 6

Gibbins v. Ogden

Holding

Answer 6

The injunction is reversed.

Question 7

Kidd v. Pearson

Answer 7

Congress’s power to regulate interstate commerce does not extend to the manufacturing of goods.

Question 8

Kidd v. Pearson

Facts

Answer 8

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.

Question 9

Kidd v. Pearson

Reasoning

Answer 9

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.

Question 10

United States v. E.C. Knight

Answer 10

Congress may not use the Commerce Clause to regulate manufacturing.

Question 11

United States v. E.C. Knight

Issue

Answer 11

Whether Congress may use the Commerce Clause to regulate manufacturing.

Question 12

United States v. E.C. Knight

Facts

Answer 12

A sugar refinery company gained four other companies in Philadelphia. Congress tried to sue to break up the monopoly.

Question 13

United States v. E.C. Knight

Reasoning

Answer 13

Manufacturing does not affect commerce directly. States have policing powers, not Congress. The companies were all in Philadelphia so this was a state matter.

Question 14

Swift & Co v. US

Answer 14

Conduct must have a direct effect on interstate commerce to be regulated by the Commerce Clause

Question 15

Swift & Co v. US

Issue

Answer 15

Whether conduct must have a direct effect on interstate commerce to be regulated by the Commerce Clause

Question 16

Swift & Co v. US

Facts

Answer 16

Congress sued many meat processors for working together to control the price of meat.

Question 17

Swift & Co v. US

Reasoning

Answer 17

The defendants were from different states and their actions had a direct effect on interstate commerce.

Question 18

Hammer v. Dagenhart

Answer 18

Congress may not use its Commerce Clause power to control child labor.

This is no longer good law

Question 19

Hammer v. Dagenhart

Issue

Answer 19

Whether Congress may use its Commerce Clause power to control child labor

Question 20

Hammer v. Dagenhart

Facts

Answer 20

Hammer challenged an act that made it illegal to sell goods that were made by children in interstate commerce.

Question 21

Hammer v. Dagenhart

Reasoning

Answer 21

Regulating child labor had no effect on interstate commerce. Also, regulating child labor is a local affair

Question 22

Carter v. Carter Coal

Answer 22

Congress may not use the Commerce Clause to regulate purely local acts.

This was limited by later cases

Question 23

Carter v. Carter Coal

Issue

Answer 23

Whether Congress may use its Commerce Clause power to regulate purely local acts

Question 24

Carter v. Carter Coal

Facts

Answer 24

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.

Question 25

Carter v. Carter Coal

Reasoning

Answer 25

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

Question 26

The Shreveport Rate Cases

Answer 26

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.