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Commerce Clause Case Study

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Argument
A. Congress has the authority to regulate John Doe’s company because the supplement, NZT-48, substantially effects interstate commerce.
Commerce Clause jurisprudence established that Congress’s power to regulate “instruments of interstate commerce inherently embraces the right to control all matters having such a close and substantial relation to interstate traffic.” United States v. Lopez also sets a qualification of the substantial effects test that limits the application of that test to economic activity. The Courts in Lopez maintained the distinction between federal and state authority under the Commerce Clause from the substantial effects test by erecting the distinction between economic and noneconomic activity. Economic concerns …show more content…
But, when intrastate commerce has a substantial economic effect on interstate commerce, Congress may regulate the activity pursuant to the Commerce Clause. The Supreme Court in Wickard v. Filburn held that even local, noncommercial activity may still, whatever its nature, be reached by Congress if it exerts a substantial economic effect on interstate commerce and this irrespective of whether such effect is what at some earlier time have been defined as ‘direct’ or ‘indirect’. Congress may reach any economic factor “trivial by itself” as along as its contribution to the national economy, taken together with that of many other actors similarly situated is far from trivial. In the U.S. v. Lopez ruling, the Court also established that the government only needs to show that they had a “rational” reason to believe that the activity would affect interstate …show more content…
They argued that the national government needed expanded powers to create a large, equal, and free trading area within the continental United States.
The origins of the Commerce Clause resides with protecting the interstate market between the several states and resolve the commercial and political conflicts among the states. Using the substantial effects test, Congress has regulated in many important aspects of commerce, including labor conditions and wheat consumption. The division of power in the constitution enables the national government to perform necessary functions while leaving the several states free to control their own affairs. The Court’s decision in creating the “substantial effects” test reflects a legal judgement that our modern economy requires extensive regulation by the central government. The Commerce Clause is a grant of power to Congress, not a limitation on the power of states to regulate their own economy. The clause by its own force divests states of the power to regulate commerce in certain ways, but the states and Congress retain concurrent power to regulate commerce in other distinct

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