In: Operations Management
Explain the commerce clause and its connections to business
Commerce clause describe the powers listed in the United States
Constitution. This states that the US Congress has the power to
"regulate trade with nations, as well as between states and with
Indian tribes." Courts and commentators tend to discuss these three
trade segments as a separate power conferred on Congress. It is
common to consider each of the elements of a business clause
specified under certain conditions: foreign trade clauses, foreign
trade clauses and Indian trade clauses.
There is controversy in the courts over the scope of power vested
in Parliament by commerce clause. As noted below, it is often
matched with the necessary and correct phrases and combinations
used to embrace these powers. However, the effect of commercial
statements varies depending on the interpretation of the US Supreme
Court.
In the Marshall court era, the interpretation of commerce clause
gave parliamentary jurisdiction over many aspects of domestic and
interstate trade, as well as activities that were considered
non-commercial. During the post-1937 period, the use of commercial
phrases by Congress to give federal authority over economic affairs
became effectively restricted. After the middle of the Rehnquist
Court, the use of commerce clause was again restricted to trade or
other forms of limited areas (whether interstate or not) and
production (whether commercial or not). . .
Commerce clause are a source of the federal drug ban under the
Substance Abuse Act. In the recent case of medical marijuana,
Gonzales v. Raich, the U.S. Supreme Court, has rejected claims that
a growing ban on marijuana cultivation for personal use exceeds the
power of Congress under commercial terms. Even if the goods are not
sold or shipped within state lines, the court finds that it may
have an indirect effect on out-of-state trade and relies heavily on
the New Deal, Wickard v Filburn, which ruled that the government
could regulate. Personal cultivation and use of crops, such as the
increase in individual consumption, may have an indirect effect on
interstate commerce.