A state legislature enacts a law requiring out-of-state trucking companies to pay a special fee for using the state’s highways, while exempting all in-state trucking companies from the fee. A trucking company based in a neighboring state challenges the law, arguing that it violates the Constitution. What is the strongest constitutional basis for challenging the state law?
The Privileges and Immunities Clause, which prevents a state from discriminating against citizens of other states.
The Tenth Amendment, which reserves powers not delegated to the federal government to the states.
The Dormant Commerce Clause, which prohibits state laws that discriminate against or impose an undue burden on interstate commerce.
The state's inherent taxing authority, which allows it to impose fees on activities within its borders.
The strongest constitutional argument against the state's law is the negative implications of the commerce clause, also called the Dormant Commerce Clause. This principle bars states from enacting regulations that unduly burden or discriminate against interstate commerce. The law at issue clearly discriminates against out-of-state trucking companies by imposing a fee on them while exempting in-state companies, thus favoring local economic interests over non-local businesses. Regulations like this are facially discriminatory and presumptively unconstitutional unless the state can show that the law serves a legitimate local interest and that no less discriminatory alternative is available. Other options are incorrect because the privileges and immunities clause only protects individual citizens, not corporations, and the taxing power of states does not extend to discriminatory practices in violation of the commerce clause.
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What is the Dormant Commerce Clause?
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How does the Privileges and Immunities Clause differ from the Dormant Commerce Clause?
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Can states impose fees on out-of-state companies for using their infrastructure?