Overview of the Commerce Clause

Congress enacts laws that touch every aspect of American lives, from the taxing policies, to what behaviors are against the law, as well as regulating interstate commerce.

The federal government began to gain power, and in Article I section 8 says, “The Congress shall have power to lay and collect taxes, duties, imports, and excises, to pay the debts and provide the common defense and general welfare of the United States; but all duties, imports and excises shall be uniform through the United States; to borrow money on the credit of the United Staes; to regulate commerce with foreign nation, and among the several states, and with the Indians Tribes… to establish post offices and post roads .” The following quote describes how the national government has different kinds of power compared to federal government. Article IV section 1 says, “full faith and credit shall be given in each states to the public acts, records, and judicial proceeding of every other state. And the Congress may general laws prescribe the manner in which such acts, records, and proceedings shall be proved… ” In simpler words, the state government has to follow laws just like a ordinary

The Interstate Commerce Act of 1887 is federal law in the United States. It was designed to regulate the railroad industry especially its monopolistic practices. A number of states in US such as Ohio had unsuccessfully attempted to regulate railroads before 1887. Ohio had created a state commission to report on railroad and telegraph rates in 1867 but the commission did not have the authority to change rates or to order the railroad companies to change their policies. Due to failure of states to regulate railroads, the Congress passed the Interstate Commerce Act in 1887. The Act required that railroads charge fair rates to their customers and make those rate public.

Next, the Court examined the clause's phrase "commerce among the several States," concluding that the word "among" means "intermingled with." Accordingly, Congress' power to regulate interstate commerce does not "stop at the external boundary line of each State, but may be introduced into the interior." In other words, Congress may pass any law that regulates commerce, so long as that commerce is not wholly confined within a single state, and its power to regulate such commerce is plenary. Under this interpretation of the Commerce Clause, Congress' clearly had the authority to regulate the commercial steamboat route between New York and New Jersey. It was assumed that the licensing act of 1793 did this and that the New York law in question

In 1886 the US Supreme Court declared that states could not regulate commerce that went beyond their boundaries in the Wabash, St. Louis and Pacific R.R. versus Illinois case. The decision provided the basis for the formation of the Interstate Commerce Commission in 1887. The Interstate Commerce Commission was a regulatory agency in the united states. Its purpose was to regulate railroads to ensure fair rates, to regulate rate discrimination and to regulate other aspects of common carriers, including interstate bus lines and telephone companies.

The Commerce Clause grants Congress the power “[t]o regulate commerce with foreign nations, and among the several states, and with the Indian tribes.” Despite its silence as to the effect of that affirmative power, federal courts have recognized the Framers’ wish to create a unified national market and have found a dormant congressional authority in it. Since the landmark case of Gibbons v. Ogden (1824), that dormant authority has limited state regulations that burden interstate commerce, even in the absence of congressional regulation. Congress has the power only to restrict the scope of permissible state regulation but it does not absolutely preclude states from affecting commerce. "[T]he states retain authority under their police powers to regulate matters of 'legitimate local concern', even though interstate commerce may be affected." A challenged statute is upheld if its effect on interstate commerce is merely incidental. On the other hand, a state regulation that is facially or practically discriminatory will be defeated unless it shows a legitimate local purpose that cannot be accomplished by any less discriminatory alternatives.

Under the Articles of Confederation, the federal government had the power to; conduct foreign affairs, maintain a military, borrow money, and issue currency. However, it depended on states for soldiers and revenue. Government did not have the power to regulate trade, make citizens join the military, or impose taxes. Under the US Constitution government has the right to levy taxes, regulate trade between states, and raise an army to handle military situations. We also have a court system to deal with problematic issues between citizens and states, as well as this, interstate trade is controlled by

The Commerce Clause in Article 1, Section 8 states that Congress has the power to regulate interstate commerce itself as well as the power to regulate local commerce if that local commerce has a substantial economic effect on interstate commerce. When Congress regulates an intrastate activity, there is a test that is used by the Supreme Court that determines whether Congress actually has the right to regulate this intrastate activity with some sort of economic effect. The Commerce Clause test is one that also goes on to explain that it is not just about one instance where if there is a substantial economic effect on interstate commerce, but as a whole having a substantial economic effect. Also, if the activity does deal with interstate commerce that has an economic effect, then Congress has the ability to regulate wages and any other instance of activity which includes all workers even if the workers do not produce the commerce. Section 1001 of the PSA states Congress’ intention to “establish a nationwide program to protect the public from the adverse effects of tainted and contaminated pharmaceutical products.” Section 5001 of the PSA establishes licensing and pharmaceutical production education requirements for “individuals employed by any pharmaceutical producer” and sets maximum hours such individuals can work. One could then argue that the Supreme Court is allowed to say that Section 5001 of the PSA is within Congress’ power to set maximum hours and make people

Article I, Section 8 of the U.S. Constitution states that “Congress shall have power to regulate commerce with foreign nations, among the several states, and with the Indian Tribes” (Epstein, et. al., 2017). “Congress can regulate the channels of interstate commerce and has the authority to regulate and protect the instrumentalities of interstate commerce, and persons or things in interstate commerce. Congress has the power to regulate activities that substantially affect interstate commerce” (Epstein, et. al., 2017).

The Articles of Confederation experienced problems from the very beginning. The main problem was the articles of confederation didn't establish that all 13 states be a sovereign nation, it allowed all 13 states to be their own sovereign nations, in truth all the states were a confederation. Which allowed them to do whatever they wanted outside of the states with foreign affairs, which the federal government now handles. The solution to the sovereignty of the states was creating a national government to help the laws not being enforced be enforced in different states. This itself was another underlying issue. The solution to the states not following each others laws was fixed by The Full Faith and Credit Clause. The Full Faith and Credit Clause

The president looked for peaceful methods to force britain and france to respect american neutrality. He decided to use an embargo. In 1807 congress passed the embargo act. It imposed a total embargo on american ships sailing to any foreign port. Jefferson predicted that both countries would cease attacking american ships.

Constitution allows the central government with control over issues of national concern, while the state governments, for the most part, have ward over issues of residential concern. While the central government can authorize laws representing the whole nation, its forces are identified, or restricted; it just has the particular forces allocated to it in the Constitution. For instance, "Article I, Section 8 of the Constitution gifts Congress the ability to demand assessments, mint cash, announce war, set up post workplaces, and rebuff thefts on the high oceans. Any activity by the government must can be categorized as one of the forces counted in the Constitution." For instance, "the central government can control interstate trade compliant with the Commerce Clause of the Constitution, however has no energy to direct business that happens just inside of a solitary

The ability for the federal government to regulate businesses’ activity is given in the Constitution. Article 1, Section 8 is known as the commerce clause; it states, “Congress shall have the Power…to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes” (Reed, 173). Through the commerce clause, the government is able to regulate business activity by the use of administrative agencies, which is defined as “a governmental regulatory body that controls and supervises a particular activity or area of public interest and administers and enforces a particular body of law related to that activity or interest” (Administrative Agency, 1). There are two types of regulatory authority that agencies may

The Constitution was designed to enforce the regulation of power between the three branches of government. Though there were many clauses stating the powers of the branches of government, it was often unclear of the original intent they were meant to serve. One of these blurred clauses is stated in Article 1, Section 8, Clause 3 of the constitution.

Role of the US Constitution and Legal System in Business RegulationThe Constitution of the United States and their legal system have an impact on the guidance and operation of companies in any industry. In case a person breaks a law, for example, he or she may be obliged to pay a fine or even imprisoned in the US. It works the same way with companies: if a business is found responsible for allowing its employees to violate regulations this company is subject to a fine and even closedown. For instance, companies are responsible to guarantee that all employees are legally authorized to work in the United States. Occasionally employees without proper documentation are able to get a job. The law enforcement agencies perform raids on business