Commerce Clause

The Commerce Clause (Article I, Section 8, Clause 3) grants Congress power to regulate interstate commerce, with the Dormant Commerce Clause implicitly limiting state regulation that discriminates against or unduly burdens interstate commerce.

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Exam Tip

Commerce Clause = Congress regulates interstate commerce. Dormant = limits STATE power. Discriminatory = virtually invalid. Non-discriminatory = Pike balancing.

What is the Commerce Clause?

The Commerce Clause grants Congress broad regulatory authority over commerce "among the several States."

Affirmative Commerce Power

Modern standard (since 1937): Congress can regulate:

CategoryExample
ChannelsHighways, waterways, internet
InstrumentalitiesVehicles, planes, persons
Activities Substantially AffectingEconomic activity with cumulative effect

Dormant Commerce Clause

Implied LIMIT on state power even when Congress hasn't acted:

TestApplication
Discriminatory LawVirtually per se invalid
Non-DiscriminatoryPike balancing: burden vs. benefit

Exceptions to Dormant Commerce Clause

  • Congressional authorization
  • Market participant exception
  • Traditional government functions

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