Apply each element of the Dormant Commerce Clause rule to the facts provided above. Based on your analysis, do you think the Mississippi statute violates the Dormant Commerce Clause? What other information would be helpful for you to know?
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Business Case Problem 1:
Mississippi state law requires the use of contoured mudguards on freight trucks operating within Mississippi state lines, to protect other vehicles from flying particles. The statute prohibits the use of straight mudguards. In the majority of other states, straight mudguards are allowed. In Alabama, straight mudguards are actually required by state law. There is some limited, albeit inconclusive, evidence suggesting that contoured mudguards are safer than straight mudguards.
In your reading this week, you learned about the Dormant Commerce Clause. The Dormant Commerce Clause rule can be summarized into the following elements:
It is unconstitutional, under the dormant commerce clause, for a State to regulate an activity when the regulation unduly burdens interstate commerce.
A regulation causes an undue burden when:
the regulation is discriminatory, or
the State’s interest in the regulation is outweighed by a burden on interstate commerce.
Apply each element of the Dormant Commerce Clause rule to the facts provided above. Based on your analysis, do you think the Mississippi statute violates the Dormant Commerce Clause? What other information would be helpful for you to know?
Business Case Problem 2:
Donna is a Doogle’s CEO, a large publicly traded corporation. Doogle relies on data centers in the southeastern United States that are fueled by coal power. In an effort to reduce Doogle’s carbon footprint, Donna decides to move the data centers across the country to the southwest. The new data centers will be powered by solar energy. The project and transition is completed in January, ahead of schedule, but at significant cost. Patrick buys 50 shares in Doogle, in March of the same year. After learning of the data center move, and the related expense, he becomes outraged and seeks out an attorney to take a derivative lawsuit action against Doogle. He claims that the data center move violated a fiduciary duty to Doogle’s stakeholders, by not protecting shareholder investments, given its significant cost.
Find a rule that applies from your assigned reading. List its elements, and apply the elements to this fact pattern. Will Patrick be able to carry out this lawsuit? Would there be any additional information that would be helpful for you to know?
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Each business case problem will be worth 40 points, totaling 80 points for each submission.
For weekly business case problems, you may work with one other student on the assignments you post to blackboard. Be sure to work together on all parts of the assignment and then each of you post the joint assignment individually on Blackboard under your name. You can switch partners over the weeks if you like. Both partners will receive the same grade on that assignment. Be sure to put both of your names on the paper you post.
You do not need to have a cover page or use APA style on the Business Case Problems. These assignments normally should be at least a half to full page in length double spaced for each case or question. (please don’t exceed 1 page).
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