Which of the following statements about the limitation of state powers under the Commerce Clause is true?

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 truth of the correct statement lies in the interpretation of the Commerce Clause, which is found in Article I, Section 8 of the United States Constitution. The Commerce Clause grants Congress the power to regulate commerce with foreign nations, among the several states, and with the Indian tribes. This clause has been the foundation for much of federal regulation regarding interstate commerce.

The accurate assertion that states cannot create laws that place an undue burden on interstate commerce stems from the principle known as the "dormant Commerce Clause." This principle implies that even in the absence of federal legislation, states may not enact laws that would interfere with the free flow of interstate trade or otherwise discriminate against or excessively burden interstate commerce. It establishes a balance between state rights and the need for a cohesive economic system across state lines.

Consequently, it is essential for state laws to be designed in a way that respects this federal framework. When state regulations conflict with federal laws or create an undue burden on interstate commerce, federal law will generally preempt state law, which is crucial for maintaining uniformity in commerce across the nation.

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