Bar Exam Practice 2025 – 400 Free Practice Questions to Pass the Exam

The commerce clause, found in Article I, Section 8 of the U.S. Constitution, grants Congress the power to regulate commerce with foreign nations, among the states, and with Indian tribes. This clause has significant implications for state powers, particularly in relation to trade and regulation.

The correct answer highlights that individual states must conform to federal trade regulations. This is due to the principle of federal supremacy established in the Constitution, which asserts that federal law takes precedence over state law. When Congress exercises its authority under the commerce clause to regulate interstate commerce, states are required to adhere to these federal regulations, even if they have their own laws that might contradict them. This ensures a unified economic environment across the states and prevents conflicting regulations that could hinder trade and commerce between states.

The other options do not accurately reflect the restrictions imposed by the commerce clause. States do not have the authority to enact any trade-related laws without regard to federal regulations, nor can they create treaties with foreign nations, as that power is reserved for the federal government. Additionally, states cannot independently control interstate travel in a manner that conflicts with federal regulations, as the commerce clause extends to the regulation of travel and movement across state lines.