Dormant Commerce Clause Flashcards
3 Ways to Discriminate
1) Facially
2) In purpose
3) In effect
Facially discriminatory laws
- Economic protectionism does not justify facially discriminatory laws against out-of-staters
- A facially discriminatory law must be necessary to achieve an important interest
- Necessary means the least restrictive alternative
(City of Philadelphia v. NJ (1978)
DCC Exceptions
- Congressional Approval
- Market Participant: A state can favor its own citizens in receiving government benefits or dealing with government-owned business.
Limit on the market participant exception
The State cannot impose conditions on commerce downstream of the market in which it participates
South-Central Timber development (1984)
Hunt v. WA State Apple Advertising (1977)
A law with discriminatory effect on out-of-staters must:
-Provide local benifits; and
-State must demonstrate there were inadequate non-discriminatory alternatives.
Exxon Corp. v. Governor of MD
A law that excludes some, but not all, out-of-staters does not violate the (dormant) commerce clause.
MN v. Clover Leaf Creamery
Laws with discriminatory effect or purpose will be upheld if they impose only an incidental burden on out-of-staters
Pike v. Bruce Church
Establishes benefits v. burdens test for laws that discriminate in purpose or effect (but not facially).
Dormant Commerce Clause
State and local laws are unconstitutional if they place an undue burden on interstate commerce.