Also known as:in course of interstate commerce · interstate commerce · commerce clause
Written by attorneys · grounded in primary & secondary sources — see below
A commercial transaction or activity that involves the movement of goods, services, or people across state lines as part of ongoing business dealings. Commodities or operations meeting this description receive protection from certain state taxes and regulations that would otherwise burden the national market.
Sources & Authorities· 15 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
How it applies
Common Examples
6
Export Ban on Local Baitfish
Maine officials enacted a statute blocking the shipment of live baitfish caught in state waters to buyers in New Hampshire. A local supplier challenged the ban after losing sales to out-of-state competitors. The court struck down the prohibition because it targeted interstate movement of a natural resource solely to shield in-state purchasers.
Waste Flow Control Ordinance
A county required all solid waste generated within its borders to be delivered to a publicly owned transfer station rather than to competing private haulers. Private operators sued, claiming the rule favored a government facility. The ordinance survived review because it directed commerce to a traditional public service provider instead of private competitors.
Congress extended minimum-wage and overtime rules under the Fair Labor Standards Act to employees of state and local governments. Several states objected that the statute invaded traditional state functions. The Court upheld the extension, holding that states must rely on the political process rather than judicial limits to protect their interests when federal rules apply equally to private and public employers.
Congressional Authorization of Surcharges
A state imposed higher disposal fees on nuclear waste originating outside its borders after Congress passed legislation expressly permitting such discrimination. An out-of-state generator challenged the fees as violating the Dormant Commerce Clause. The surcharges were sustained because Congress had authorized the differential treatment.
Gun-Free School Zones Act
A student carried a handgun onto school grounds in Texas. Federal prosecutors charged him under a statute criminalizing possession of firearms in school zones. The Court invalidated the conviction because the statute lacked any jurisdictional element connecting the possession to interstate commerce.
United States v. Lopez514 U.S. 549 (1995)
Live Poultry Code Under NIRA
A New York poultry processor was convicted for violating wage, hour, and sales-practice rules contained in a code promulgated under the National Industrial Recovery Act. The Court reversed the convictions because the code attempted to regulate intrastate slaughterhouse operations that had only an indirect effect on interstate commerce.
A. L. A. Schechter Poultry Corp. v. United States295 U.S. 495 (1935)
Common questions
Frequently Asked
1
When does property lose its exemption from state taxation as being in the course of interstate commerce?+
Property remains exempt while it is still moving through the channels of interstate commerce. Once the goods come to rest in a state and acquire a taxable situs, they may be subjected to ad valorem taxation provided the tax is fairly apportioned.
514 U.S. 549 (1995)Constitutional Law
…terms. It neither regulates a commercial activity nor contains a requirement that the possession be connected in any way to interstate commerce. The statute does not, therefore, represent a valid exercise of Congress’ power to “regulate Commerce . . . among the several States.” U. S. Const., Art. I, § 8, cl. 3. Majority…
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