Legislative Powers - The Commerce Clause, 3rd Era (1937-1989): The New Deal

Question 1

Where is the Commerce Clause in the Constitution?

Answer 1

Article I, Section 8, Clause 3

Question 2

Congress has the power under the Commerce Clause to regulate commerce with…

Answer 2

foreign nations, among the several states, and with the Indian tribes

Question 3

What is arguably the most important substantive power of the Federal Government?

Answer 3

Congress’ power to regulate commerce among the several states

Question 4

The “close and intimate” casual relationship test for commerce is established in what case?

Answer 4

NLRB v. Jones & Laughlin

Question 5

According to Darby, what factors might a court consider in overturning a previous case?

Answer 5

When the prior case is an outlier (it is inconsistent with all of the cases coming before and after it) and when it subsequently isn’t followed.

Question 6

According to Garcia v. San Antonio Metropolitan Transit Authority (SAMTA), what factors might the court consider in overturning a previous case?

Answer 6

When the test set forth is unworkable

Question 7

The “substantial effects” test for commerce is established in what case?

Answer 7

Darby

Question 8

Darby overturns what prior case and creates what foundation related to commerce?

Answer 8

Hammer v. Dagenhart

Foundation created is that prohibiting commerce when manufactured with child labor is ok and that Congress’ motive is irrelevant.

Question 9

Who wrote the Darby opinion?

Answer 9

Justice Story

Question 10

The “substantial economic effects” and “aggregate” tests were established in what case?

Answer 10

Wickard

Question 11

What was the primary law under review and that developed from NLRB v. Jones & Laughlin?

Answer 11

Under review was the National Labor Relations Act of 1935

The Fair Labor Standards Act (FLSA) developed

Question 12

What was the holding regarding the FLSA in NLRB v. Jones & Laughlin?

Answer 12

That the FLSA was constitutional because Congress can regulate (even purely local) activities if those activities have a close and intimate relationship with interstate commerce

Question 13

What was the primary issue in NLRB v. Jones & Laughlin?

Answer 13

An interstate steel manufacturing company monopoly with unfair labor practices

Question 14

How many provisions does the FLSA have? And what is the difference between them

Answer 14

Two provisions

1. about shipping goods through interstate commerce made with improper labor standards (appropriate end for N & P Clause)
2. about using improper labor standards for making goods that will be later shipped through interstate commerce (appropriate means for N & P Clause)

Question 15

What is the first provision of the FLSA? And is it constitutionally sound?

Answer 15

One cannot ship goods via interstate commerce when made using improper labor standards

yes, this is constitutionally sound

Question 16

Why did the Darby court find the first provision of the FLSA constitutionally sound?

Answer 16

Because Congress can exclude any article from interstate commerce subject only to a specific prohibition from the Constitution

Question 17

What is the second provision of the FLSA? And is it constitutionally sound?

Answer 17

One cannot use improper labor to make goods that will later ship via interstate commerce

yes, this is constitutionally sound

Question 18

Why did the Darby court find the second provision of the FLSA constitutionally sound?

Answer 18

Because the power of Congress over interstate commerce extends to those activities INTRAstate which have a substantial effect on INTERstate commerce as to make a regulation of them appropriate means to a legitimate end

Question 19

What allowed Congress to pass the FLSA? And Why?

Answer 19

The N &P Clause

Because it’s constitutional for Congress to prohibit the transport of goods made using improper labor (the legitimate end), it can also prohibit the making of the goods using improper labor in the first place (an appropriate means)

Question 20

Beyond the two provision of the FLSA what was the other constitutionally sound argument for it?

Answer 20

The Casual Relationship Argument

The production of condemned goods for interstate commerce is so related and so affects it as to be within the reach of the commerce power

Question 21

What is the primary issue in the Wickard case?

Answer 21

That the farmer grows wheat for his personal consumption

Is there an effect on interstate commerce when food is grown or products are manufactured for personal use?

Question 22

Congress has the power to regulate the production of goods intended for interstate commerce. Does it also have the power to regulate the production of goods intended for personal consumption alone?

Which case does this rule come from?

Answer 22

Yes

From the Wickard Case

Question 23

What two tests come from the Wickard case?

Answer 23

1. The Aggregation/Cumulative Test

2. The Substantial Economic Effects tests

Question 24

What is the Aggregation/Cumulative test?

Answer 24

That one’s own contribution to economic supply/demand may be trivial by itself but is not enough to remove one from the scope of federal regulation, particularly when the contribution is put together with others similarly situated, it becomes far from trivial

Each supplies a need which would otherwise be reflected as purchases in the open market

Question 25

What is the Substantial Economic Effects Test?

Answer 25

Even though a purely local activity may not be regarded as commerce, Congress can still regulate it if it has a substantial economic effect on interstate commerce.

This is true regardless if the effect is direct or indirect

Question 26

Congress’ power to regulate includes the promotion/stimulation of commerce; does it also include the power to limit supply in order to command higher prices?

Answer 26

yes

Question 27

Why is the right of unions essential (NLRB v. Jones & Laughlin)?

Answer 27

The right of unions are essential for industrial peace

Question 28

What is the basic premise of the FLSA?

Answer 28

prevents shipment of interstate goods when labor conditions/wages don’t conform to its standards

Question 29

Does the 10th amendment affect the FLSA holding from Darby?

Answer 29

No

Question 30

Can Congress prohibit commerce of goods where they may be injurious to public health, morals, or welfare?

From which case?

Answer 30

yes

From The Darby Case

Question 31

What did the holding in the Wickard case establish?

Answer 31

It established that Congress may regulate purely INTRAstate activity which is not “commercial” if the failure to regulate would undercut the regulate of INTERstate commerce

Question 32

Can Congress control the volume of interstate commerce? Why?

Answer 32

Yes, to avoid surplus’ and shortages

Question 33

What is the method of argument from the NLRB v. Jones & Laughlin Court?

Answer 33

A living Constitution argument

Question 34

Do the Direct/Indirect, local/national, production/manufaturing categorizations of commerce still matter after the Wickard Case?

Answer 34

No

Question 35

What case provided the broadest expansion of the Commerce Clause yet?

Answer 35

The Wickard Case

Question 36

What Law developed from the Heart of Atlanta Hotel Case?

Answer 36

The Civil Rights Act of 1964

Congress prohibited racial discrimination with regards to public services via the Commerce Clause

Question 37

What is the primary takeaway from the Heart of Atlanta Hotel Case?

Answer 37

Almost any business can be reached by the Commerce Clause because commerce today generally always concerns more than one state

Question 38

What was the issue and holding in the Klatzenbach Case?

Answer 38

Issue - BBQ restaurant wanted to discriminate against black people saying they could only carry out food.

Holding:
If there is a substantial economic effect on interstate commerce then congress may regulate it. Just because the food bought might be minute compared to the total food moving through commerce doesn’t mean it is outside scope of federal regulation.

The Civil Rights Act still applied because the restaurant bought their food via interstate commerce

Question 39

What was the primary issue in the Heart of Atlanta Hotel Case?

Answer 39

Motel owner wouldn’t rent to black people and claimed the civil rights act was unconstitutional

Question 40

What was the holding from the Heart of Atlanta Hotel Case?

Answer 40

If interstate commerce feels the pinch, it does not matter how local the operation which applies the squeeze government has interest in intrastate commerce

This is a nationwide issue, as Americans are increasingly mobile. By not allowing black people to use the motel it impairs their travel, pleasure, and convenience.

Question 41

Was the activity that was sought to be regulated in The Heart of Atlanta Hotel Case “commerce which concerns more states than one”?

Answer 41

Yes, because commerce among the state includes traffic between different state’s citizens

Question 42

In the Heart of Atlanta Hotel Case could Congress have REASONABLY believed the regulated activity would have a substantial effect on interstate commerce?

Answer 42

Yes

Because Congress’ power to regulate interstate commerce which includes the power to remove obstructions and burdens on the flow of that commerce by any means necessary and proper

There is overwhelming evidence that discrimination by hotels and motels impedes interstate travel

Thus, since racial discrimination affects interstate commerce, Congress can pass an act under the Commerce Clause combating racial discrimination—it doesn’t matter that Congress is trying to address a vision of morality

Question 43

Why didn’t Congress pass the Civil Rights Act under the 14th Amendment instead of the Commerce Clause?

Answer 43

Because The Civil Rights Act protects an individual from discrimination by a private establishment that holds itself open to the public and The Fourteenth Amendment protects an individual from discrimination by the State/government

Question 44

What is the rule of law that came from NLRB v. Jones & Laughlin(1937)?

Answer 44

Congress may regulate labor relations under its Commerce Clause power because labor relations have such a close and substantial relationship to interstate commerce that their control is essential to protect that commerce from burdens and obstructions.

Question 45

What was the rule of law that came from Darby (1941)?

Answer 45

Congress may regulate the labor standards involved in the manufacture of goods for interstate commerce and may exclude from interstate commerce any goods produced under substandard labor conditions.

Question 46

What was the rule of law that came from Wickard v. Fillburn (1942)?

Answer 46

Congress may regulate local activity if it exerts a substantial economic effect on interstate commerce.

Question 47

What was the rule of law that came from Heart of Atlanta motel (1964)?

Answer 47

Congress may enact regulations that prevent racially discriminatory policies in hotel accommodations because of the negative effects on interstate commerce.

Question 48

What was the rule of law that came from Katezenbach v. McClung (1964 - also known as Ollies BBQ case)?

Answer 48

Congress may regulate the discriminatory policies of restaurants through Title II of the Civil Rights Act if those policies have a substantial effect on interstate commerce.