Regulation of Commerce

Question 1

What is the power of Congress of state regulation?

Answer 1

federal law will preempt state law even if they don’t conflict but are in the same field.

Question 2

Can Congress permit or prohibit state regulations?

Answer 2

yes, but they cannot have states go against civil liberties

Question 3

What is the Dormant Commerce Clause?

Answer 3

if Congress has not enacted laws regarding the subject, a state or local government may regulate local aspects of interstate commerce. To do so, however, it must not discriminate against or unduly burden interstate commerce.

Question 4

What are discriminatory regulations?

Answer 4

laws that protect local economic state interest

Question 5

What is the important state interest exception?

Answer 5

a discriminatory state or local law may be valid if it furthers an important, noneconomic state interest and there are no reasonable non discriminatory alternatives available. ex. prohibit import of live bait fish because of parasites

Question 6

What is the State as a market participant exception?

Answer 6

a state may prefer its own citizens when acting as a market participant (buying and selling, hiring labor, or giving subsidies)

Question 7

What is favoring government performing traditional government functions?

Answer 7

permissible usually because it is motivated by a legitimate objective.

Question 8

What id the law is non-discriminatory?

Answer 8

Then the courts apply a balance test it will be invalid unless the burden outweighs the promotion of a legitimate local interest.

Question 9

What is the power to tax interstate commerce by states?

Answer 9

The same considerations from regulations go to taxing except the test for nondiscriminatory taxes is different. There must be a substantial nexus, a fair apportionment, and a fair relationship.

Question 10

What are some examples of state taxes?

Answer 10

Use tax- tax on goods purchased outside of the state, but used within it
Sales tax- tax on the sale of goods consummated within the state
Ad Valorem Tax - Tax on the assessed value of some property (commodities- valid only if prop is out of interstate commerce, instrumentalities - valid if it has a taxable situs in state and it is fairly apportioned.
Privilege, License, Franchise, and Occupational Tax - Tax placed on some activity