A state legislature passes a law requiring out-of-state trucking companies delivering goods within the state to pay a special fee for the use of state highways. The stated purpose of the fee is to raise revenue for highway maintenance. However, the fee disproportionately impacts out-of-state businesses that rely heavily on transporting goods into the state, while most in-state businesses do not incur equivalent costs. A group of out-of-state trucking companies files a lawsuit challenging the law. What is the state court likely to find regarding the law?
The law violates the negative implications of the Commerce Clause because it places an undue burden on interstate commerce.
The law is valid because it addresses an important state interest in maintaining highways.
The law is valid because states have complete authority to tax highway use by out-of-state businesses.
The law is valid unless the federal government explicitly preempts it under the Supremacy Clause.
The correct answer is that the law likely violates the negative implications of the Commerce Clause (also known as the Dormant Commerce Clause). The Dormant Commerce Clause doctrine prohibits state laws that discriminate against or unduly burden interstate commerce. In this scenario, the fee targets out-of-state businesses in a way that appears protectionist and unfairly disadvantages them in the market, which is impermissible.
A law that disproportionately burdens interstate commerce, particularly in cases where less burdensome or discriminatory means could achieve the state’s goal, will likely be struck down under this doctrine.
The state could avoid violating the Dormant Commerce Clause by crafting a nondiscriminatory highway use fee that applies fairly to all users, regardless of in-state or out-of-state status.
Incorrect answers either misinterpret how the Dormant Commerce Clause applies, incorrectly rely on the state's authority, or overlook federalism-based principles protecting interstate commerce.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What is the Commerce Clause, and how does it affect state laws?
Open an interactive chat with Bash
What is the Dormant Commerce Clause?
Open an interactive chat with Bash
What options does a state have to enact fees or laws affecting interstate commerce?