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5 Cards in this Set
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lxxxv. Exceptions to the Dormant Commerce Clause
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How did Western & Southern Life Insurance demonstrate an exception to the DCC by allowing a state discriminatory statute? Facts:1. Insurance company (P) challenged state law that imposed a retaliatory tax on out-of-state insurers on the ground that it violated the commerce clause.
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2. Congress can confer authority on a state to be able to discriminate against out of staters, which would otherwise be in violation of the CC, by passing state regulation that would do just that. a. CA discriminates against out of state insurance firms. CA does this b/c its firms in the state of Ohio are also subject to a higher tax. Normally this would be invalidated for discriminating against out of staters. But there is a congressional act saying it’s okay to discriminate against out of staters.
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How did Reeves v. William [MARKET PARTICIPANT] (“cement plant”) demonstrate an exception to the DCC? Facts: 1. When South Dakota (D) built a state-owned cement plant, which sold it to private buyers, but later gave preferences to in-state buyers, Reeves (P), a long time buyer, challenged the policy under the Commerce Clause.
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2. When a state participates in the market under a state owned business, and this business discriminates against out of staters while favoring its citizens, the state (owned business) will not be in violation of the commerce clause. a. When the state participates in the market, it acts as a private firm. There is this long running idea that if you don’t want to do business w/ someone you don’t have to as a private player in the market.
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How did South Central Timber Development demonstrate: [Limitation on market participant exception] Facts: 1. Alaska (D) imposed a restriction on buyers of Alaska (D) timber that required them to process the timber in Alaska (D) before export.
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2. A state may not use the market participant doctrine to regulate by discriminating what goes on after the initial transaction (and therefore after state ceased to be a market participant) in further downstream from the sale. a. Alaska was requiring that a buyer process the timber in the state after the sale of timber had been completed.
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What is the Subsidy Exception to the Dormant Commerce Clause (DCC)?
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1. A State may confer benefits to instaters and deny these benefits to out of staters b/c citizens pay state taxes and expect a return; while at the same time, programs must be limited so that the benefits can be maintained.
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