Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 12

Alabama was one of only sixteen states that permitted commercial hazardous waste landfills. From 1985 through 1989, the tonnage of hazardous waste received per year more than doubled. Of this, up to 90 percent of the hazardous waste was shipped in from other states. In response, Alabama imposed a hazardous waste disposal fee of $72 per ton on hazardous waste generated outside the state and disposed of at a commercial facility in Alabama. The fee does not apply to such waste having a source in Alabama. (This law imposes a fee of $97.60 per ton for hazardous waste generated outside Alabama compared with a fee of $25.60 per ton for hazardous wastes generated within Alabama.)
Chemical Waste Management, Inc., which operates a commercial hazardous waste land disposal facility in Emelle, Alabama, filed suit asserting that the Alabama law violated the Commerce Clause of the U.S. Constitution.
a. What arguments could Chemical Waste Management, Inc. make in support of its claim that the statute is unconstitutional?
b. What arguments could Alabama make to defend the constitutionality of the statute?
c. Who should prevail? Explain.