Which test is used to determine if a state law violates the Dormant Commerce Clause?

The correct choice focuses on whether the law discriminates against out-of-staters, which is a critical aspect of the Dormant Commerce Clause analysis. Under this doctrine, states cannot enact laws that favor their own residents at the expense of out-of-state competitors. The purpose of this principle is to prevent economic protectionism and ensure that interstate commerce remains free from undue burdens imposed by individual states.

When assessing a state law under the Dormant Commerce Clause, the first step is to determine if the law explicitly or implicitly discriminates against interstate commerce. If the law is found to be discriminatory, it fails the scrutiny required under the Dormant Commerce Clause unless the state can demonstrate a legitimate local interest and that no reasonable nondiscriminatory alternatives are available. Thus, the discriminatory nature of a law toward out-of-staters is pivotal in deciding its constitutionality under the Dormant Commerce Clause.

The other options do not serve as the primary tests for analyzing a state law's compliance with the Dormant Commerce Clause. While benefits to local businesses or financial viability may influence public policy and state legislation, they do not directly pertain to the fundamental issue of interstate discrimination. Similarly, federal approval is not a requirement for a state law's validity regarding the Commerce Clause, as the