PLSC 471 Quiz 3

Where is the Commerce Clause found?

Article I, Sec. 8, Clause 3

What does the Commerce Clause say?

Congress shall have the power "to regulate commerce with foreign nations and among the several states and with the Indian tribes"

What are the categories of commerce outlined in the Commerce Clause

-Foreign Commerce

-Interstate Commerce

-Intrastate Commerce

What was commerce under the Articles of Confederation?

State trade barriers and duties on imports

Coastal Licensing Act of 1793

Regulated coastal and fishing vessels in the United States

Gibbons v. Ogden FACTS

-NY steam boat monopoly granted to Robert Livingston

-Aaron Ogden and Thomas Gibbons licensed under Livingston-Fulton Monopoly

-Ogden dissolves the partnership and Gibbons partners with Cornelius Vanderbilt

-They become licensed under the Coastal Licensing Act of 1793

-NY Court rules against them

Gibbons v. Ogden ISSUE

Under the Commerce Clause, may a state create a monopoly over the navigation of an interstate waterway?

-No, 6-0, Marshall

Gibbons v. Ogden TAKEAWAYS

1. Distinction between inter/intrastate commerce

2. Regulation of interstate commerce in plenary

Plenary power

power that is not limited or constrained

Congress has _____ _______ over commerce

plenary power

Why is the Commerce Clause controversial?

The broader the interpretation, the greater the power of the federal government

What are the Constitutional Principles

Limited government and federalism

Powers of the federal government are __________ while the power of tstates are _________

few and defined, numerous and indefinite

The commerce clause provides a ______ ________ for a variety of legislation

jurisdictional hook

Sherman Antitrust Act (1890)

First federal action against monopolies

Kidd v. Pearson (1888)

SC held that a distinction between manufacturing and commerce meant that Iowa could prohibit the manufacturing of alcohol since it was a state power

United States v. E.C. Knight Co. FACTS

-American Sugar Refining Company (65% market share) intends to acquire four PA sugar refining companies (33%) market share '

-This would give the American Sugar Refining Compny 98% market share, leaving only the Boston company with 2%

-Sherman Antitrust Act used against them

-As-applied challenge to the Sherman Antitrust Act

United States v. E.C. Knight Co. ISSUE

Based on the Commerce Clause, may the federal government regulate the monopolistic practices of companies engaged in manufacturing?

-No, 8-1, Fuller

United States v. E.C. Knight Co. TAKEAWAYS

1. Manufacturing vs Commerce

-Commerce comes after manufacturing, but is not part of it

2. Federal regulation of monopolies must involve interstate or foreign commerce

-Instruments of commerce can be regulated by congress (vehicles, planes, ships, etc)

3. Intent of manufacturer to export product is irrelevant

-Kidd v. Pearson

Prior to 1937, when can Congress regulate intrastate commerce?

1. When the intrastate commerce has a direct effect on interstate commerce

2. When it causes a substantial burden to commerce

-ex/ Limited the number of trailers/length of trucks

3. When intrastate commerce is part of the movement of a product

Passenger cases

SC decides 5-4 that states do not have the right to impose a tax that is based on the number of passengers on board a ship

Swift & Co. v. United States (1905)

-Involved the "Beef Trust" monopolies over slaughterhouse industry

-Established the concept of Stream of Commerce

Stafford v. Wallace FACTS

-Agents auctioning livestock are colluding to increase prices at auctions

-This practice is outlawed by the Packers and Stockyards Act

-Starts registrations and inspections

-Agents argue they're in intrastate commerce and cannot be regulated by the fed

Stafford v. Wallace ISSUE

Under the Commerce Clause and Swift & Co. vs. US, may Congress regulate dealers and commission agents at livestock markets

-Yes, 7-1, Taft

Stafford v. Wallace TAKEAWAYS

-Stream of Commerce

-Swift & Co used as precedent

What is police power and who has it?

-The authority to regulate the health, safety, and welfare of citizens

-States have police power, federal government does not

Where do states derive their power?

State constitutions

-Can outlaw certain things the fed cannot

-ex/ Four Loko

Champion v. Ames FACTS

-Anti-lottery Act of 1895 outlaws lotteries

-Charles Champion imports lottery tickets from Paraguay and ships them across state lines

-Champion argues Congress is suppressing rather than regulating

Champion v. Ames ISSUE

Under the Commerce Clause, may Congress prohibit the interstate shipment of goods because those goods are harmful to society?

-Yes, 5-4, Harlan

-Gibbons v. Ogden cited to show Congress' power is plenary

Champion v. Ames TAKEAWAYS

1. Regulation vs Prohibition

-Commerce power used as a police power

2. Due Process Clause of the Fifth Amendment

-Liberty of Contracts

-Lotteries are "injurious to the public morals"

Hammer v. Dagenhart FACTS

-Federal Child Labor Act bans shipment of goods between states if the goods were manufactured using child lbaor

-Law challenged by the Executive Committee of Southern Cotton Manufacturers

-Ronald Dagenhart is a cotton mill worker along with his 2 sons

Hammer v. Dagenhart ISSUE

Based on the Commerce Clause and Tenth Amendment, may Congress ban the interstate shipment of goods made by companies that use child labor?

-No, 5-4, Day

Hammer v. Dagenhart TAKEAWAYS

1. Congress cannot compel states to regulate local manufacturing

-State may regulate on their own

2. Tenth Amendment

-Power of states to regulate internal affairs

Carter v Carter Coal (1936)

Mining does not amount to commerce and is regulated by states

A.L.L Schechter Poultry Corp v. United States FACTS

-National Industrial Recovery Act is the centerpiece of the New Deal and designed to regulate industries more strictly

-Live Poultry Code part of this, sets regulation on the poultry in NYC (maximum hours, minimum wage, and health inspections)

-Chickens in these NY slaughterhouses came from other states but were sold in-state

-Brooklyn slaughterhouse violates the code and challenges the law

A.L.L Schechter Poultry Corp v. United States ISSUE

Under the Commerce Clause, may Congress regulate the working conditions of companies that import interstate goods, but only sell intrastate?

-No, 9-0, Hughes

A.L.L Schechter Poultry Corp v. United States TAKEAWAYS

1. Deligation of Powers

-Congress cannot cede its power to president

2. Stream of Commerce

-Test not applied here because the slaughterhouse is the final destination of the poultry

3. Affect on interstate commerce is only indirect

-not enough for congress to regulate

FDR Court Packing Plan

-After being ruled against in important cases, FDR decides to pack the courts

-Has huge majority in Congress and is very popuar

-No Justice was appointed by FDR

-Following his landlside re-election in 1936, FDR announces plan to pack court:

--For every judge over 70, FDR will create a new seat

--Stated it was to help the Court's workload

Public opinion of FDR's court plan

Most people were against the plan

-would change the structure of government for political motives

Was FDR's plan successful?

No, but the court did begin to reconsider their opinions and rule more favorably for FDR "Switch in time that saved Nine"

West Coast Hotel v. Parrish (1937)

"The switch in time that saved nine."

-Court rules in favor of an FDR policy regarding minimum wage

Post-1937 Commerce Clause Doctrine

-Substantial Effect test

-Focus on the magnitude of the effect on interstate commerce

-No longer matters if the activity involves manufacturing or if the effect is indirect

NLRB v Jones and Laughlin Steel Corporation (1937) FACTS

-National Labor Relations Act allows for unions to collectively bargain

-Aliquippa steel plant employees try to unionize but are fired by Jones & Laughlin

-National Labor board rules the workers were wrongly terminated and orders their jobs back

NLRB v Jones and Laughlin Steel ISSUE

According to the Commerce Clause, may Congress regulate the labor activities that are substantially related to interstate commerce?

-Yes, 5-4, Hughes

NLRB v Jones and Laughlin Steel TAKEAWAYS

-Substantial Effect test applied

-Manufacturing is no longer determinative (Congress allowed to regulate it in this instant)

-Court moves away from pre-1937 tests

-"We have often said that interstate commerce is a practical conception"

United States v Darby FACTS

-Fair Labor Standards Act: New Deal act that regulates overtime and other work conditions

-Darby owns small lumber mill in Georgia and sells across state lines, forcing him to pay min wage and max hours according to FLSA

-Darby caught not meeting standards

United States v Darby ISSUE

Under the Commerce Clause and Tenth Amendment, may Congress regulate the intrastate labor conditions of a company engaged in interstate commerce?

-Yes, 8-0, stone

United States v Darby TAKEAWAYS

-Hammer v Dagenhart is overruled

-Tenth Amendment states "all but a truism that all is retained which has not been surrendered"

-Implies tenth amendment does not matter

Wickard v Filburn FACTS

-Agricultural Adjustment Act: New Deal legislation used to control the supply of agricultural products to ensure a stable price

-Filburn grows wheat in Ohio, plants 23 acres when given 11.1

-Uses the extra for seed, animal feed, and flour all to be used on farm

-Sec of Agri. Wickard takes to court

Wickard v Filburn ISSUE

Based on the Commerce Clause, may Congress regulate non-commercial intrastate agricultural production?

-Yes, 9-0, Jackson

Wickard v Filburn TAKEAWAYS

1. Substantial Effect

-If youre growing excess crops, then you're not buying them

2. Aggregate Effect

-If every farmer did this, the aggregate effect would hurt commerce

3. Purpose of the act is to limit the supply

Heart of Atlanta Motel v. United States FACTS

-Civil Rights Act of 1964: Outlaws racial discrimination in public accommodations

-Heart of Atlanta motel near interstate, violates the act

-Public accommodations: private businesses that are open to the public

Heart of Atlanta Motel v. United States ISSUE

Under the Commerce Clause, may Congress prohibit discrimination by private businesses that provide public accommodations?

-Yes, 9-0, Clark

Heart of Atlanta Motel v. United States TAKEAWAYS

1. Discrimination impacts interstate commerce

-Green Book cited as an example

-Discourages travel

2. Passenger Cases (1849)

-Recognized the movement of people as commerce

3. Rational-basis

-Court will cede to the judgement of Congress if they say there's a rational-basis to use interstate commerce to outlaw

United States v. Lopez FACTS

-Alfonso Lopez Jr brings handgun to school

-Already illegal in Texas, federal government prosecutes under the Gun-Free School Zones Act

-State drops charges

-Does not involve commerce and deals with criminal law

United States v. Lopez ISSUE

Under the Commerce Clause, may Congress make handgun possession in school zones a federal crime?

-No, 5-4, Rehnquist

United States v. Lopez TAKEAWAYS

1. Non-economic activity

-Commerce Clause has been interpreted broadly, but not this broad

-"inference upon inference"

2. No jurisdictional element (relation to commerce)

CONGRESS REWRITES LAW TO INCLUDE THAT THE FIREARM MUST BE MOVED OR AFFECTS INTERSTATE OR FOREIGN COMMERCE

United States v. Morrison FACTS

-Christy Brzonkala claims sexual assault by VTech football players

-Lawsuit filed against Morrison and VT under Violence Against Women Act which allows victims of gender related crime to sue in federal court

-Congressional hearings over the impact of gender related violence held

United States v. Morrison ISSUE

Based on the Commerce Clause and US v Lopez, may Congress regulate non-economic, intrastate gender-motivated crime?

-No, 5-4, Rehnquist

United States v. Morrison TAKEAWAYS

1. Lopez analysis applied, no relation to commerce

2. If this logic is applied to crime then the fed would have control over all aspects of life

REMED SHOULD BE PROVIDED BY STATE

Gonzales v. Raich FACTS

-Controlled Substances Act: Federal law placing drugs into different schedules

-Marijuana illegal federally but California legalizes it recreationally

-Angel Raich and Diane Monson, CA residents obtaining marijuana through intrastate means

Gonzales v. Raich ISSUE

Based on the Commerce Clause, Necessary and Proper Clause, and Wickard v. Filburn, may congress regulate the non-commercial, intrastate cultivation of marijuana as part of a comprehensive regulatory scheme?

-Yes, 6-3, Stevens

-3 dissenting Justices conservative, view case as states' rights

Gonzales v. Raich TAKEAWAYS

1. Similarities to Wickard

-Homegrown marijuana would impact drug market

2. Purpose of CSA

-Control supply and demand of drugs

3. Necessary and Proper

-Congress can pass laws deemed necessary and proper to carry out their powers

-Rational-basis: differ to congress

Justice O'Connor Dissent Gonzales v. Raich

1. Chief virtue of federalism

-Let states experiment with policy

2. Definition of "economic activity"

3. Private producible analogue

-Staying home to play video games means you're not going to the movies

National Federation of Independent Businesses v. Sebelius FACTS

-Patient Protection and Affordable Care Act individual mandate

-Kathleen Sebelius, Sec of Health and Human Services sued by NFIB

-Individual mandate part of commerce clause (forces someone to buy something)

National Federation of Independent Businesses v. Sebelius ISSUE

According to the Commerce Clause and the Necessary and Proper Clause, may Congress compel individuals to engage in an activity if that participation would have a substantial effect on interstate commerce

-No, 5-4, ROberts

-Upheld individual mandate under Congress' power to tax

National Federation of Independent Businesses v. Sebelius TAKEAWAYS

1. Power to regulate vs create

-"coin money" vs "regulate the value thereof"

-This power would increase congressional authority

2. Regulation on inactivity

-Would allow the government to regulate all areas of life (ex/diet)

3. Necessary and Proper Clause

-Does not allow for substantive powers beyond what is enumerated

Positive Commerce Clause

-Standard commerce clause

-Things Congress can do

Dormant Commerce Clause

-Things states cannot do

-ex/ ban imports/exports from other states, coin money

Cooley v. Board of Wardens FACTS

-1789 Congressional law regulating ports allowed states to regulate their own ports until Congress acted otherwise

-1803 PA law requires ships to hire local pilots who understand local waterways

-Cooley argues ports need to be regulated by the fed or not at all

Cooley v. Board of Wardens ISSUE

Under the Commerce Clause, may a state regulate navigation if Congress has authorized that regulation and it does not conflict with federal law

-Yes, 7-2, Curtis

Cooley v. Board of Wardens TAKEAWAYS

1. Diversity vs Uniformity

-Allows for diversity in state regulations where uniformity was not required

-Sometimes local govts know area best

Southern Pacific Co v. Arizona FACTS

-Arizona Train Limit Law: Limits max of 14 passenger cars or 70 freight cars

-No federal legislation on the issue

Southern Pacific Co v. Arizona ISSUE

Under the Commerce Clause, may a state limit the length of trains if Congress has not enacted legislation to the contrary?

-No, 7-2, Stone

Southern Pacific Co. v. Arizona TAKEAWAYS

1. Burdens interstate commerce

-Most trains longer and traveling interstate

2. States can regulate diverse local conditions with litter interference to interstate commerce

3. States cannot regulate when there is substantial burden on ic or need for national uniformity

Hunt v. Washington State Apple Advertising Commission FACTS

-North Carolina Board of Agriculture requires apple containers to show only USDA grades

-Washington apple growers (30% of apples at the time) use a more stringent grading system

Hunt v. Washington State Apple Advertising Commission ISSUE

Based on the Commerce Clause, may a state place constraints on the importation of out-of-state produce if those restrictions give the state a competitive advantage?

-No, 8-0, burger

Hunt v. Washington State Apple Advertising Commission TAKEAWAYS

1. Effect of the Regulation

-Increased cost

-reduced competitive advantage

-limited availability to market the product

2. Alternatives available

-Could allow state grades only if they use USDA also

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