Legal Definitions - commerce

Commerce refers to the broad range of activities involving the exchange of goods, services, or money, typically for economic gain. It encompasses buying, selling, and trading that often occurs on a significant scale, frequently crossing local, state, or international borders. This concept is fundamental to how governments, particularly in federal systems, define their authority to regulate economic activity.

• Example 1: A large-scale furniture manufacturer based in North Carolina sells its products to retail stores and individual customers across all fifty U.S. states and also exports to Canada and Mexico.

  Explanation: This scenario clearly demonstrates commerce because it involves the extensive buying and selling of physical goods (furniture) for financial gain, operating across state lines and international borders. The sheer scale and geographical reach are key aspects of how "commerce" is understood legally.

• Example 2: An online streaming service headquartered in California provides subscription-based access to movies and TV shows to millions of users worldwide, collecting monthly fees from each subscriber.

  Explanation: This illustrates commerce through the exchange of a service (digital content access) for money (subscription fees) on a massive, international scale. Even though no physical goods are shipped, the economic transaction of a valuable service across borders is a core component of commerce.

• Example 3: A farmer in Iowa sells a substantial portion of their corn harvest to a food processing company in Illinois, which then uses the corn to produce various food products distributed nationally.

  Explanation: This example shows commerce as the exchange of goods (corn) for financial value between businesses located in different states. This interstate transaction of agricultural products, which then enter a broader supply chain, is a classic instance of economic activity regulated as commerce.