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Flashcards in Dormant Commerce Clause Deck (6)
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1

Under Dormant Commerce Clause...

States cannot discriminate against out of state goods or economic acts

2

When does the dormant commerce clause come into play?

Where Congress has not enacted legislation regulating interstate commerce

3

What is the dormant commerce clause?

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

4

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

When the state shows that:

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

5

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

 

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

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

6

Exceptions to Dormant Commerce Clause

  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.