The commodities clause is a provision established by the Hepburn Act of June 29, 1906. Its primary purpose is to prevent railroad companies from transporting goods that they produce, mine, or have an ownership interest in during interstate commerce. This restriction applies to various commodities, with specific exceptions for timber, timber products, and items necessary for the railroad's operations.
The commodities clause is relevant in the context of transportation law and regulatory compliance. It is primarily used in cases involving railroad companies and their operations. Legal professionals may encounter this clause when dealing with issues related to antitrust laws, transportation regulations, and corporate governance. Users can manage related forms and procedures through resources like US Legal Forms, which offers templates drafted by attorneys.
Here are a couple of examples of abatement:
For instance, if a railroad company mines coal and attempts to transport that coal across state lines, the commodities clause would prohibit this action. Conversely, if the same company transports lumber it purchased from an external supplier, this would not violate the clause.
The primary statute governing the commodities clause is the Hepburn Act of 1906. This act was a significant piece of legislation aimed at regulating railroad rates and practices, and the commodities clause is a key component of that regulation.
| Term | Definition | Key Differences |
|---|---|---|
| Commodities Clause | Prohibits railroads from transporting their own goods in interstate commerce. | Specific to railroads and certain commodities. |
| Antitrust Laws | Regulations to promote competition and prevent monopolies. | Broader in scope, applicable to various industries. |
If you are involved with a railroad company and are unsure whether the commodities clause affects your operations, consider consulting a legal professional. Additionally, you can explore US Legal Forms for templates that may assist in compliance with transportation regulations.
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| Attribute | Details |
|---|---|
| Jurisdiction | Federal law under the Hepburn Act |
| Key Exemptions | Timber and timber products |
| Applicable to | Railroad companies in interstate commerce |
It aims to prevent railroad companies from having an unfair advantage by transporting their own goods in interstate commerce.