Question

What are the consequences of a strict interpretation of the term "commerce" when deciding the constitutionality of federal laws? What are the consequences of a liberal interpretation?

Answer 1

Answer and Explanation:

1. If the term "trade" is interpreted strictly, the concept of free trade will be undermined. This is because the literal interpretation will give the State the power to completely control and manage trade, which interferes with the concepts of economic liberalism which states that the State should not meddle in commercial matters beyond the protection of property.

2. As a consequence of this strict interpretation there would be consequences in the relations between large and small companies, since the State could interfere in the way they are established and how they compete with each other.