Role of the Federal Court System

The Federal Court system has repeatedly interpreted the Commerce Clause, usually in favor of allowing each state to impose a tax on companies that do business in that particular state. Congress has been granted the authority to make those determinations. However, there have been many challenges of authority over the Commerce Clause.

For example, there was a case regarding a ban on access for trucks on local roads in New Jersey, unless they were beginning or completing business in that state, was overruled in the Federal Court system. The ban was overturned because the Federal Court system determined that the ban violated the Commerce Clause. In effect, the ban was a discrimination against interstate commerce and only rewarded companies that did business in the state of New Jersey. Therefore, companies that did business in New Jersey, were able to utilize a more speedy route through local roads, simply because they conducted business in the state.

The Federal Court system has consistently referenced the Commerce Clause to prevent a state from discriminating against a company that conducts business in other states. The Federal Court System has determined that behaviour which discriminates against a company based on the states in which they conduct business, is detrimental to the nation as a whole. For example, states that offer better benefits to businesses, may steal businesses from other states based on the benefits provided by one state. That practice does not benefit the Nation.

There are enumerable other cases, in which the Federal Court system has made similar decisions,which have greatly influenced commerce across the Nation. There have been cases in which the Federal Courts system has granted Congressional power to individual states to regulate business simply because items used in their business originated in other states, crossed state lines and made that business an interstate business.

The Federal Court system utilizes the Commerce Clause to protect each business's freedom to conduct business in any state, without prejudice. Any business has the right to take part in business transactions across the country, without being penalized for conducting that business. In addition, the Federal Court systems also has the power to regulate any practice which can effect interstate commerce.

In other words, no state has the power to prevent a business from utilizing services in that state, in order to conduct their business, even if the business is another state. Ultimately, the Commerce Clause is constantly interpreted by the Federal Court system in order to ensure that each business in the country, has an equal opportunity to conduct business, for the benefit of the Nation as a whole.

NEXT: State and Federal Constitutional Constraints