Define: Dormant Commerce Clause

Dormant Commerce Clause
Dormant Commerce Clause
Quick Summary of Dormant Commerce Clause

The Dormant Commerce Clause, also known as the Negative Commerce Clause, is a provision in the US Constitution that prohibits states from enacting laws that impede interstate trade, even in the absence of congressional legislation. Consequently, states are prohibited from implementing regulations that create obstacles for businesses seeking to sell their products in other states.

Full Definition Of Dormant Commerce Clause

The Dormant Commerce Clause is a constitutional principle that prohibits states from regulating interstate commercial activity, even in the absence of congressional regulation under the Commerce Clause power. The Commerce Clause, located in Article I, Section 8, Clause 3 of the U.S. Constitution, grants Congress the sole authority to regulate commerce among states, with foreign nations, and with Indian tribes. For instance, if a state were to enact a law that restricts the movement of goods across state borders, that law would likely be invalidated as a violation of the Dormant Commerce Clause. This is because the regulation of interstate commerce falls exclusively under the jurisdiction of Congress, and states are not allowed to interfere with that authority.

Dormant Commerce Clause FAQ'S

The Dormant Commerce Clause is a legal doctrine derived from the Commerce Clause of the United States Constitution. It prohibits states from passing laws that unduly burden or discriminate against interstate commerce.

The Dormant Commerce Clause restricts states from enacting laws that excessively interfere with interstate commerce. It ensures that states do not create barriers or favor local businesses over out-of-state businesses.

States can regulate commerce as long as their laws do not discriminate against or excessively burden interstate commerce. Any state law that has a discriminatory effect or places an undue burden on interstate commerce may be deemed unconstitutional under the Dormant Commerce Clause.

The most commonly used test is the “Pike test” established by the Supreme Court in Pike v. Bruce Church, Inc. This test weighs the burden on interstate commerce against the state’s legitimate local interests. If the burden on commerce outweighs the state’s interest, the law may be struck down.

Yes, a state law can still be invalidated if it imposes an undue burden on interstate commerce, even without explicit discrimination. The Dormant Commerce Clause aims to prevent any state law that hampers the free flow of commerce between states.

Yes, if a state law serves an important local interest and the burden on interstate commerce is not excessive, it may be upheld. The Supreme Court recognizes that states have legitimate interests in protecting their citizens and promoting local economic welfare.

Yes, local governments are also subject to the Dormant Commerce Clause. They cannot pass laws that discriminate against or unduly burden interstate commerce. However, local laws that are authorized by the state and serve a legitimate local interest may be upheld.

Yes, Congress has the power to regulate interstate commerce under the Commerce Clause. If Congress passes a law that explicitly allows states to regulate a particular aspect of interstate commerce, it can override the Dormant Commerce Clause.

There are certain exceptions to the Dormant Commerce Clause, such as when Congress explicitly grants states the authority to regulate a specific area of interstate commerce. Additionally, in times of emergency or public health crises, states may be given more leeway in regulating commerce.

If a state law is found to violate the Dormant Commerce Clause, it may be declared unconstitutional and struck down. The court may issue an injunction preventing the law from being enforced, and the state may be required to compensate any affected parties for damages suffered as a result of the unconstitutional law.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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