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The State of Michigan Passed a Law That Allowed Wineries

question 43

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The state of Michigan passed a law that allowed wineries within the state to ship wine directly to Michigan consumers without having to go through a wholesaler.The same law prohibited out-of-state wineries from doing the same.In effect,the cost of out-of-state wine increased as it had to go through a wholesaler,thereby providing incentives for Michigan consumers to purchase Michigan wine.However,in 2005,the Supreme Court ruled in Granholm v.Heald that the law was unconstitutional as it discriminated against out-of-state wineries.Which clause of the Constitution was used to declare the Michigan law unconstitutional?


Definitions:

Assets

Resources owned by a company or individual that have economic value and can provide future benefit.

Debt Outstanding

The total amount of borrowed money that a company or government has not yet repaid to creditors or bondholders, including both principle and interest.

Basic Earning Power Ratio

A financial metric that measures a company's ability to generate earnings from its assets, regardless of financing.

HD

Typically refers to "High Definition," denoting a high level of detail in images or videos, but in a financial context, it could relate to "Home Depot" stock symbol or a concept not standardized across finance.

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