Dormant Commerce Clause

Question 1

Dormant Commerce Clause

Answer 1

Congress has broad commerce power; where Congress has not acted, state and local laws may regulate local aspects of interstate commerce if the regulation is neither discriminatory nor unduly burdensome

Question 2

Dormant Commerce Clause

Dormant Commerce Clause: Test

Answer 2

A state/local law regulating interstate commerce is invalid if it:

1) Discriminates against out-of-state competition,
2) Unduly burdens interstate commerce, or
3) Regulates wholly out-of-state activity

Question 3

Dormant Commerce Clause

Dormant Commerce Clause: Element 1

Answer 3

Discriminates against out-of-state competition

Question 4

Dormant Commerce Clause

Dormant Commerce Clause: Element 2

Answer 4

Unduly burdens interstate commerce

Question 5

Dormant Commerce Clause

Dormant Commerce Clause: Element 3

Answer 5

Regulates wholly out-of-state activity

Question 6

Dormant Commerce Clause

Dormant Commerce Clause: Examples of Violations

Answer 6

• Regulations protecting local businesses or requiring local operations
• Regulations limiting access to in-state products

Question 7

Dormant Commerce Clause

Dormant Commerce Clause: Exceptions

Answer 7

A state law burdening interstate commerce is valid if either:

1) It is necessary to an important state interest;
2) The state is a market participant;
3) Traditional government function; or
4) Congress approves

Question 8

Dormant Commerce Clause

Dormant Commerce Clause: Necessary to an Important State Interest

Answer 8

i.e. furthers an important, non-economic state interest and no reasonable alternatives are available

Question 9

Dormant Commerce Clause

Dormant Commerce Clause: State as a Market Participant

Answer 9

State can favor its own citizens in buying or selling products, hiring labor, giving subsidies, etc.

Question 10

Dormant Commerce Clause

Dormant Commerce Clause: Traditional Government Function

Answer 10

State can discriminate against non-residents if law involves performance of traditional government functions

Question 11

Dormant Commerce Clause

Dormant Commerce Clause: Congress Approves

Answer 11

State can burden interstate commerce where Congress has unmistakenly granted permission