Which of the following most accurately describes a state's power to regulate business under the Dormant Commerce Clause of the U.S. Constitution?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

The Dormant Commerce Clause refers to the implicit restriction on states' powers to regulate interstate commerce. It prevents states from enacting legislation that discriminates against or excessively burdens interstate trade. The correct answer highlights that a state can regulate interstate commerce as long as it has a legitimate interest for doing so.

Legitimate interests may include health, safety, and welfare of the public, or environmental protection, among others. However, such regulations cannot violate the principles of fairness or create unreasonable barriers to trade between states. The balance here is that while states have the right to protect their own interests, they must do so in a way that does not interfere with the broader interests of interstate commerce.

This understanding is important because it delineates the boundaries of state power in relation to the federal government's authority over commerce. The answer accurately captures this balance by emphasizing the need for a legitimate interest without overstepping into violations that could hinder interstate trade.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy