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0 tracked cards Constitutional Law

State C owns and operates a mill that sells reclaimed lumber from state demolition projects. During a shortage, the mill gives State C residents first priority to buy lumber and charges them 20 percent less than nonresidents. The sales contract also requires every buyer, resident or nonresident, to use State C workers on any construction project in which the lumber is later installed.
An out-of-state contractor challenges both the priority discount and the labor condition under the dormant Commerce Clause. Which statement is most accurate?

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Both provisions are invalid because a state may never favor its own residents in a commercial transaction. Both provisions are valid because a state acting anywhere in commerce is exempt from the dormant Commerce Clause. The downstream labor condition is automatically valid because every buyer voluntarily signs the contract. The resident discount and priority are more likely valid because the state is selling its own lumber, but the downstream in-state-labor condition is more vulnerable because it regulates a separate market after the sale.

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