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Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
Commerce clause
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Commerce clause

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  • 1. Article I, Section 8 Clause 3 Commerce Clause Interstate Commerce Bill Conley
  • 2. Introduction
    • Interstate Commerce
      • Business or exchange of commodities (trade), between citizens of different states across state lines.
  • 3. Original intent
    • Reaction to Articles of Confederation
    • Move from plural to singular meaning of the United States of America
      • “…a more perfect Union”
    • Insure flow of trade is free of encumbrances and restrictions
    • Madison in 1928, “power to regulate trade.”
  • 4. Historical expansion
    • Application of the clause has moved from limiting states’ interference with free exchange, to recent attempts to coerce citizens to buy a product; insurance.
  • 5. Early Years
    • Federal Plenary Power
      • Gibbons v. Ogden
          • Chief Justice John Marshall
          • Commerce includes “every species of commercial intercourse”
          • Federal government has complete power if legislated in that area
            • Ogden given exclusive rights by NY through Livingston and Fulton, and Gibbons rights through coasting trade act – Congress 1793
  • 6. Unimplemented Power
    • “Selective exclusiveness”
      • Justice Benjamin R. Curtis
      • Cooley v. Board of Warrens of Port of Authority
      • If Congress hasn’t legislated, states may, unless there is a need for “uniform national control”
  • 7. Increased Congressional Power
    • Interstate Commerce Act 1887 put railroads under federal jurisdiction
    • Sherman Antitrust Act (1890)prohibited combinations or monopolies due to restraint of trade between states or foreign powers
  • 8. Limits on Power
    • U.S. v. E. C. Knight Company (1895)
      • Sherman Act doesn’t apply to sugar monopoly
      • Commerce succeeds to manufacture, and is not a part of it.”
      • “…does not begin until goods commence their final movement from state of their origin to their final destination.”
      • “direct effect” – local activity directly affects interstate commerce
  • 9. Limits on Power
    • Next forty years of restrictive rulings on congressional power in regards to control of mining, farming, fishing, oil production, and generation of hydro-electric power
    • Included in Gibbons was the idea that goods produced, transported, and sold were out of federal reach
  • 10. Viewpoints
    • Some saw these rulings as permission to Congress to increase authority and scope
    • Constructionists say these actions as keeping the trade of goods clear of state restraints concerning transportation of interstate commerce.
    • Most cases before 1900 found against state regulations that encroached on federal areas
  • 11. Early Progressives
    • 1905 Justice Oliver Wendel Holmes, Jr.
      • “ stream of commerce” any local action that becomes part of interstate commerce can be federally regulated
    • 1914 Justice Charles Evans Hughes
      • Federal dominant rule when intrastate and interstate activities are related
  • 12. Court’s Expansion
    • 1908 move to include labor organizations ( Loewe v. Lawlor) was countered by congress passing Clayton Antitrust Act
      • “ the labor of a human being is not a commodity or article of commerce “ of a human being is not a commodity or article of commerce.”
  • 13. Progressive Movement
    • Sought to expand power to create extensive control in gambling (lottery tickets), food processing, and prostitution, and labor.
      • ..closing the channels of interstate commerce to objectionable material
      • Exception to control child labor – limit federal control over conditions under which goods are produced
  • 14. 1930s
    • Supreme Court reverts back to “production-distribution” and “direct effect” distinctions, which angers FDR and he tries to intimidate the court.
    • He succeeds and the Court rejects the narrow interpretations of previous courts.
      • NLRB v. Jones and Laughlin Steel Corp (1937) “close and substantial relation …protect…from burdens
  • 15. Progressive Era
    • New Deal Programs 1940s
      • Labor relations, wages, hours, agriculture, business, and navigable streams
      • U.S. v. Darby Lumber Co. –
      • , “prohibition of such shipment (produced under substandard labor conditions) ….is indubitably a regulation of the commerce.”
  • 16. More Progressivism
    • Justice Frank Murphy - 1946
      • “ The federal commerce power is as broad as the economic needs of the nation” ( N.Am.Co. v. S.E.C)
    • Support of Civil rights Act of 1964
      • Heart of Atlanta Motel, Inc. v. U.S.
      • Commerce clause alone supports statute
  • 17. Move to Conservatism
    • - “first principles” and federalism
      • U.S. v. Lopez ( 1995)
        • 1990 statute making possessing gun on school property a federal crime, that if repeated elsewhere would “substantially affect interstate commerce.”
        • Chief Justice Rhenquist argued against police power using Commerce Clause over state or local criminal matters.
    • Only second occasion since 1937 that the Court had ruled that congress had exceeded authority under the commerce clause.
  • 18. Continued restrictions
    • Struck down Violence against Women Act
      • U.S. v. Morrison (2000)
      • Rehnquist – statute had no authority under commerce clause, because it did not involve economic or interstate activity.
    • Both Lopez and Morrison were 5-4 decisions. Court is political and/or ideological.
  • 19. ple·na·ry 1: complete in every respect : absolute , unqualified < plenary power>

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