Assigment Of Business Laws Essay

257 WordsMay 24, 20112 Pages
Management 230 Date: 01/17/2011 Assignment #2: P90, #6 Facts: Wyoming, whose coal producing is major in its economy, provided the great amount of the coal for four Oklahoma electric utilities from 1981 to 1986. However, this state imposes a severance tax on those who extract it. Oklahoma Legislature then passed an Act requiring that all coal-burning power plants in the state purchase at least ten percent of the coal they burn from the Oklahoma coal mines. As a result, the amount of Wyoming coal sold to Oklahoma’s electric utilities reduced. After that, the former state challenged that legislation. Wyoming, the plaintiff, brought its action basing on a standpoint that the Act violates the Commerce Clause because it discriminated against interstate commerce. The state of Wyoming only won the case after a Special Master was appointed. I believe the state of Wyoming’s challenge was successful because the Act passed by Oklahoma legislature is invalid under the Commerce Clause and the state of Oklahoma advanced no purpose to justify such discrimination. Excluding coal mined from other states based merely on its origin, the state also did not justified the discrimination in terms of its local benefits that the Act brought about as well as the unavailability of nondiscriminatory alternatives adequate to preserve those interests which were for the aim of sustaining the Oklahoma coal-mining industry. References: http://en.wikipedia.org/wiki/Commerce_Clause http://openjurist.org/502/us/437/wyoming-v-oklahoma

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