Dormant Commerce Clause

Question 1

Under Dormant Commerce Clause…

Answer 1

States cannot discriminate against out of state goods or economic acts

Question 2

When does the dormant commerce clause come into play?

Answer 2

Where Congress has not enacted legislation regulating interstate commerce

Question 3

What is the dormant commerce clause?

Answer 3

Limitations imposed on a state when regulating local transactions affecting interstate commerce

Question 4

When can a state discriminate against out-of-state goods or economic actors?

Answer 4

When the state shows that:

1. The regulation serves a compelling interest; and
2. The regulation is necessary to the compelling interest

Question 5

What result if a state law merely incidentally burdens interstate commerce?

If state law incedentally burdens interstate commerces, the state must show:

Answer 5

Court will apply balancing test:

Law will be upheld, unless: burden imposed on interstate commerce clearly outweighs the local benefits

State must show:

1. the regulation serves an important state interest
2. the regulation does not pose an excessive burden on interstate commerce

Question 6

Exceptions to Dormant Commerce Clause

Answer 6

1. Congress may affirmatively authorize states to legislate in areas that would violate the dormant Commerce clause; and
2. when states act as market participants, they may discriminate between in-state and out-of- state businesses.