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Legal Definitions - intrastate commerce

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Definition of intrastate commerce

Intrastate commerce refers to any commercial activity, such as the buying, selling, or transportation of goods and services, that occurs entirely within the borders of a single U.S. state. This means that all aspects of the transaction, from production to sale and consumption, do not cross state lines. Activities considered intrastate commerce are typically regulated by the laws of that specific state, rather than by federal law.

Here are some examples to illustrate:

  • Example 1: Local Bakery

    A bakery in Austin, Texas, sources all its ingredients (flour, sugar, eggs) from Texas farms and suppliers. It bakes its bread and pastries in Austin and sells them exclusively to customers who visit its shop or through local delivery services within Texas. None of its ingredients or finished products ever leave the state of Texas. This entire operation is considered intrastate commerce because all commercial activities, from sourcing to production and sale, are confined within Texas.

  • Example 2: California-Based Landscaping Service

    A landscaping company based in San Diego, California, provides gardening, lawn care, and tree trimming services exclusively to residential and commercial clients located within various cities in California. All its employees live and work in California, and all its equipment and supplies are purchased and used within the state. This business operates entirely within California's borders, making its services and transactions a clear example of intrastate commerce.

  • Example 3: Florida Citrus Farm and Juice Production

    A family-owned farm in central Florida grows oranges, harvests them, and then processes them into fresh orange juice at an on-site facility. The farm then sells this juice directly to consumers at its roadside stand and distributes it to local grocery stores and restaurants solely within Florida. Since the entire process—from growing the fruit to processing and selling the juice—takes place exclusively within Florida, this constitutes intrastate commerce.

Simple Definition

Intrastate commerce refers to commercial activity that takes place entirely within the borders of a single U.S. state. This means the goods, services, or transactions do not cross state lines and are typically subject to state, rather than federal, regulation.

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