Exxon Corp. v. Governor of Maryland
Encyclopedia
Exxon Corp. v. Governor of Maryland, 437 U.S. 117 (1978), was a case in which the Supreme Court of the United States
upheld a Maryland
law prohibiting oil producers and refiners from operating service stations
within its borders. The law was a response to evidence that those stations, which represented about 5% of all those in Maryland, had received preferential treatment during the 1973 oil crisis
.
The challengers, including Exxon
, claimed that the law violated the Dormant Commerce Clause
. Justice Stevens wrote for the majority, which disagreed with Exxon et al.: "Since Maryland's entire gasoline supply flows in interstate commerce and since there are no local producers or refiners, such claims of disparate treatment between interstate and local commerce would be meritless."
Majority held that Act does not (1) discriminate against interstate dealers (2) prohibit the flow of interstate goods (3) place added cost on them (4) or distinguish between in-state or out-of-state retailers. The absence of any of these factors fully distinguishes this case from Hunt v. Washington Apple Commission
.
The Court held that the regulation was constitutional despite huge extraterritorial effects of the regulation, less burdensome options available to the state, and no legitimate state interest apart from a desire for cheaper oil. This case is an exception to the rules set forth in Pike v. Bruce Church.
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
upheld a Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
law prohibiting oil producers and refiners from operating service stations
Filling station
A filling station, also known as a fueling station, garage, gasbar , gas station , petrol bunk , petrol pump , petrol garage, petrol kiosk , petrol station "'servo"' in Australia or service station, is a facility which sells fuel and lubricants...
within its borders. The law was a response to evidence that those stations, which represented about 5% of all those in Maryland, had received preferential treatment during the 1973 oil crisis
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
.
The challengers, including Exxon
Exxon
Exxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard....
, claimed that the law violated the Dormant Commerce Clause
Dormant Commerce Clause
The "Dormant" Commerce Clause, also known as the "Negative" Commerce Clause, is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the United States Constitution...
. Justice Stevens wrote for the majority, which disagreed with Exxon et al.: "Since Maryland's entire gasoline supply flows in interstate commerce and since there are no local producers or refiners, such claims of disparate treatment between interstate and local commerce would be meritless."
Majority held that Act does not (1) discriminate against interstate dealers (2) prohibit the flow of interstate goods (3) place added cost on them (4) or distinguish between in-state or out-of-state retailers. The absence of any of these factors fully distinguishes this case from Hunt v. Washington Apple Commission
Hunt v. Washington State Apple Advertising Commission
Hunt v. Washington State Apple Advertising Commission, 432 U.S. 333 was a case in which the Supreme Court of the United States unanimously struck down a North Carolina law requiring all importers of apples to label their containers with United States Department of Agriculture grade, and...
.
The Court held that the regulation was constitutional despite huge extraterritorial effects of the regulation, less burdensome options available to the state, and no legitimate state interest apart from a desire for cheaper oil. This case is an exception to the rules set forth in Pike v. Bruce Church.