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Problem:

Scenario: Commerce Clause

ABC Freightways maintained its principal place of business in Arkansas. However, they provided trucking services in all states west of the Mississippi River, which included the State of Kansas.

The State of Kansas passed a law that restricted the length of trucks that could use its interstates to 55 feet. While the length of single trailers are usually no more than 55 feet, that of double trailers are usually 65 feet. Other neighboring states adopted the length of their trucks to be 65 feet. Because of this statute, ABC Freightways could not use their double trailers in the State of Kansas. ABC Freightways filed a lawsuit claiming that the State of Kansas statute was an unconstitutional burden on interstate commerce.

The State of Kansas provided one exception in the statute that allowed cities along the borders of the state to make an exception to the law that allowed trucks in excess of 55 feet to use their local roads. While waiting on the case to be resolved, ABC Freightways learns from two regular drivers that several highway patrol officers in the State of Kansas offered to overlook the double trailers as long as they traveled through the state on weekends and between 9 p.m. and 5 a.m. during the week. The officers suggested that contributions to the trooper's union would be nice.

Using the South University Online Library or the Internet, research about interstate commerce. You can use the following terms for your search:

Interstate commerce
Commerce clause
Trucking companies

Based on your research, understanding, and the scenario, create a 3- to 4-page Microsoft Word document that includes the answers to the following questions:

Required:

Question 1) What state or states could ABC Freightways file the lawsuit?

Question 2) Should the lawsuit be filed in a state or federal court? Why? Does it matter?

Question 3) Is the State of Kansas statute an impermissible burden on interstate commerce? Why?

Question 4) Does the exception to the statute survive the constitutional challenge? Why?

Question 5) What are your recommendations to resolve this lawsuit?

Question 6) What are the ethical issues related to the offer made by the state troopers? How should ABC Freightways respond to these ethical issues? Support your responses with examples.

Provide thorough explanation of every question given in the problem.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91149190

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