Question

Which statement BEST interprets the meaning of the Supreme Court decision in Gibbons v. Ogden?

Answer 1

Only the federal government has the power to regulate interstate commerce.

Answer 2

Answer:

b. Only the federal government has the power to regulate interstate commerce.

Explanation:

In the early 1800s, the New York state granted Robert Fulton and Robert R. Livingston a 20-year monopoly on steamboat navigation in state waters. Later on, Aaron Ogden purchased those rights to operate steamboats between New York City and New Jersey.

The conflict originated when Thomas Gibbons, a steamboat owner, operated his boat on that same route without Fulton and Livingston's authority, which led Ogden to sue Gibson in 1819. In Court, Gibbons appealed alleging that he held a federal license to do business there, which had been issued by Congress.

The case ended up turning in Gibson's favor because the Court determined that federal law prevails over state laws and it is the federal government, and not the states, that has the power to regulate interstate commerce, so the Court reversed the New York's law that allowed citizens to hold a monopoly on steamboat navigation in state waters.