Dormant Commerce Clause

The Dormant Commerce Clause is a judicial doctrine inferring from the Commerce Clause a negative prohibition against state laws that discriminate against or unduly burden interstate commerce, even when Congress has not acted.

Get personalized explanations
💡

Exam Tip

Dormant Commerce Clause = States cannot discriminate against interstate commerce. Discriminatory = per se invalid. Neutral = Pike balancing. Exception: Market participant.

What is the Dormant Commerce Clause?

The Dormant Commerce Clause restricts states from passing legislation that improperly burdens or discriminates against interstate commerce, even when Congress has not legislated.

Two-Tier Analysis

Type of LawStandardOutcome
DiscriminatoryVirtually per se invalidAlmost never upheld
Non-discriminatoryPike balancing testUsually upheld

Pike Balancing Test (1970)

"Where the statute regulates even-handedly... it will be upheld unless the burden on commerce is clearly excessive in relation to the putative local benefits."

Landmark Cases

  • Philadelphia v. New Jersey (1978): Ban on out-of-state waste discriminatory
  • Pike v. Bruce Church (1970): Established balancing test
  • Maine v. Taylor (1986): Rare valid discriminatory law (ecological protection)

Exceptions

ExceptionDescription
Congressional ApprovalCongress can authorize discrimination
Market ParticipantState as buyer/seller may favor locals
SubsidiesDirect subsidies generally allowed

Study This Term In

Related Terms