Bar Exam Practice Questions 2025 – Your All-in-One Guide to Mastering the Bar Exam!

Interstate trade is primarily governed by federal legislation, primarily because the Constitution grants Congress the power to regulate commerce among the states. This is established in the Commerce Clause, which is found in Article I, Section 8 of the Constitution. The purpose of this clause is to create a uniform system of trade regulation across the states, preventing individual states from enacting their own laws that might conflict with federal regulations or that could create barriers to interstate commerce.

Federal legislation covers a wide range of activities that can affect trade between states, including transportation regulations, trade agreements, and standardization of products. Hence, while states have the right to govern trade within their own borders, they cannot interfere with or control interstate commerce in a manner that contradicts federal law. This maintains a consistent regulatory environment that facilitates economic exchange across state lines, promoting free trade among the states.

In contrast, other statements regarding the regulation of interstate trade do not accurately reflect the legal framework established by the Constitution. State law primarily governs intrastate (within-state) commerce, and while states can have some regulatory power, it cannot undermine federal regulations on interstate commerce. Additionally, interstate trade is indeed affected by the Commerce Clause, which is specifically designed to regulate and protect commerce across state lines, preventing