(C) is the correct answer.

Issue: Whether a state’s regulation of commercial activities implicates the U.S. Constitution.
Rule: States may regulate interstate commerce, but may not discriminate against nor unduly
burden interstate commerce. This concept is known as either the Dormant Commerce Clause or
the Negative Commerce Clause. For a state regulation that affects interstate commerce to be
valid, the regulation must pursue a legitimate state end, be rationally related to that end and the
regulation must outweigh the burden imposed by the regulation on interstate commerce.
Analysis: The state regulation at issue affects interstate commerce. Note that the regulation does
not have any classifications nor does it infringe upon fundamental rights or essential activities.
Thus the only Constitutional clause it could possibly invoke of those listed is the Commerce Clause.

(C) is correct because the Commerce Clause is the only possible basis of the choices listed here
for challenging the state statute.

(A) is incorrect because no due process concerns are raised by this statute. Substantive due
process is invoked only when a fundamental right is infringed upon – no fundamental rights are
mentioned in this statute. Procedural due process is invoked when the state denies life, liberty or
property. Since the statute does not deny anyone a life, liberty or property interest, there is no
procedural due process issue.

(B) is incorrect because the statute does not include any classifications. The Equal Protection
Clause provides the citizens of the United States with certain fundamental rights and protects them
against discrimination by the government. Since the statute is neither discriminating nor imposing
on fundamental rights, the Equal Protection Clause is not applicable here.

(D) is incorrect because the Privileges and Immunities Clause does not apply to corporations; it
applies only to U.S. citizens by barring the states from infringing upon the “privileges and
immunities” of national citizenship. Remember also that the Fourteenth Amendment Privileges and
Immunities Clause is rarely used. This should only be applied if there is a minimum residency
requirement for a benefit that infringes upon the ability of non-residents to move to the state.