Question

Mr. James is opening up a new business producing watch parts in Minnesota, which he then ships to Michigan to be assembled into watches by a different company. Mr. James is likely to have to abide by commercial regulations set at which levels of government?
Select one:
A. Local, state, and federal regulations
B. Local and state regulations, but not federal
C. State and federal regulations, but not local
D. Local regulations

Answer 1

C.state and federal regulations, but not local

Answer 2

Federal regulations and the state regulations of Minnesota and Michigan.

Mr. James will have to follow the regulations of Minnesota and Michigan regarding the production of the pieces and the production of the watches. He'll also have to follow federal regulation, this is because the business is moving items between two states and therefore the federal government becomes the overarching rule.

The rade between states is regulated by the federal government and those laws must be followed first and as a priority. State regulations that usually are more specific than the federal regulation would also have to be followed for a person that operates in that state.