Under the Dormant Commerce Clause, in the absence of federal legislation, what is the general rule for state regulation of interstate commerce?

Under the Dormant Commerce Clause, in the absence of federal legislation, what is the general rule for state regulation of interstate commerce?

• A. Dormant Commerce Clause - Discriminate Against Out of State
• B. Dormant Commerce Clause - General Rule
• C. Dormant Commerce Clause - Undue Burden
• D. Market Participant Exception

Answer: (B)

The general rule under the Dormant Commerce Clause is that, in the absence of federal legislation, state regulation may not discriminate against interstate commerce or place an undue burden on it. When a law targets out-of-state interests by favoring in-state ones, it’s typically struck down. If a regulation is facially neutral but falls hardest on out-of-state actors, courts apply the balancing tests to see if the burden on interstate commerce is clearly excessive in relation to local benefits. This framework prevents states from protecting local markets at the expense of national economic unity. An important exception is when a state acts as a market participant, which can allow it to treat in-state and out-of-state actors differently in specific transactions.

The general rule under the Dormant Commerce Clause is that, in the absence of federal legislation, state regulation may not discriminate against interstate commerce or place an undue burden on it. When a law targets out-of-state interests by favoring in-state ones, it’s typically struck down. If a regulation is facially neutral but falls hardest on out-of-state actors, courts apply the balancing tests to see if the burden on interstate commerce is clearly excessive in relation to local benefits. This framework prevents states from protecting local markets at the expense of national economic unity. An important exception is when a state acts as a market participant, which can allow it to treat in-state and out-of-state actors differently in specific transactions.