Key Terms
Study Guide
The Commerce Clause and Federal Business Regulation
Definition
Prohibits formal censorship BEFORE the publication of speech — the government cannot restrict speech before it is expres
Federalism
The separation of power between the federal government and the state governments.
Goal
Avoid tyranny by not concentrating all power in one central government. Also addresses the failures of the Articles of C
Limit
State legislation must be reasonable and applied fairly, not arbitrarily. Cannot violate the US Constitution.
KEY POINT - E-COMMERCE AND SALES TAX
As of June 2018, the US Supreme Court ruled that states MAY impose sales tax on e-commerce sales from businesses with NO
Result
State law is displaced.
Example
The 8th Amendment prohibits "cruel and unusual" punishment. The Supreme Court uses "evolving standards of decency" to de
Original scope
Business transactions across state lines.
Current scope
Business activity WITHIN one state that SUBSTANTIALLY AFFECTS OR IMPACTS commerce in other states.
Note the direction
The Dormant Commerce Clause RESTRICTS STATES — not the federal government.
What violates the Dormant Commerce Clause
1. A state law that DISCRIMINATES against out-of-state commerce 2.
Example of a violation
A state requires out-of-state corporations to pay a HIGHER tax or fee than in-state corporations. That is unconstitution
What does NOT violate the Dormant Commerce Clause
A state exercising its police power to protect its citizens — as long as it applies EVENLY AND EQUALLY to all.
Example of a valid exercise
A state weighs trucks on highways to enforce maximum weight limits. Even if the trucks are from out of state, the rule a