The Privileges and Immunities Clause Interactions








Forest Gump’s dream is to open a boutique chocolate store near the beach. He spends several years in his home state of Missouri saving money for his venture. When he has enough saved up to pay the store’s rent and the food & beverage license filing fee, which is $500 according to his friend in California, he finally makes his move. Upon arriving in California he discovers that nonresidents must pay $7500 as a license filing fee, rather than the $500 resident fee. Distraught and broke, Gump runs all the way home to Missouri, but too broke to buy back his home there he keeps running and running. When will Gump stop running?
Choice 1 When he discovers that the difference in filing fees is a violation of the Privileges and Immunities Clause?
Choice 2 When he discovers that the difference in filing fees violates the Commerce Clause?
Choice 3 He will never stop running, because the difference in filing fees is valid.
Choice 4 He will stop running only when he decides it’s time to do so.
Following the chocolate travesty Forest Gump decides to become a shrimper. He and a friend incorporate Bubba-Gump Shrimp, Inc., in Delaware. Gump and his friend are both residents of that state. They purchase a boat and travel to Mississippi to begin shrimping, whereupon they are told that state law requires that shrimping licenses for out-of-state corporations are three times as much as for an in-state corporation. Having learned his lesson from the chocolate business, Gump decides to fight instead of running. What is the result of the suit claiming a Privileges and Immunities violation?
Choice 1 Bubba-Gump Shrimp, Inc. wins because the law is discriminatory.
Choice 2 Bubba-Gump Shrimp, Inc. wins because the law is discriminatory regarding a fundamental right and is not closely related to a substantial state interest.
Choice 3 Bubba-Gump Shrimp, Inc. loses, because the plaintiff is a corporation.
Choice 4 Bubba-Gump Shrimp, Inc. loses, because shrimping is a traditionally local activity for which states may discriminate in favor of local entities.
Forest Gump is destitute. Contrary to popular lore, every business venture he has attempted has failed, not to mention the money he lost on horse races and in the stock market. Fortunately, he is currently a resident of Arkansas, which provides him with $1000 per month in unemployment benefits. While this money goes quite a long way in Arkansas, he believes he could live like a king on $1000 per month in Tennessee. Gump makes the move, and is quickly disappointed to discover that the state of Tennessee will give him only $52 per month in unemployment. He sues, claiming that the Privileges and Immunities Clause requires Tennessee not rob him of the benefits afforded him by Arkansas and must pay the same $1000 per month. What is the result?
Choice 1 Gump WINS, as Tennessee cannot discriminate against him simply because he chose to move there from another state.
Choice 2 Gump LOSES, because the unemployment stipend was a “special privilege” enjoyed by citizens of Arkansas.
Forest Gump decides that if he can’t make a living selling chocolates or catching shrimp, and if he can’t live on the unemployment check which he now receives, he might as well learn to hunt for his own food. While Tennessee does not have much wild game worthy of hunting for food, Montana does. Gump plans to travel to Montana, obtain a hunting license, and shoot some elk to feed him over the winter months. Upon arrival in Montana Gump finds that hunting licenses for out-of-staters cost $500, while residents of Montana can obtain a license for $13. Once again distraught Gump does what he does best and files suit. Is this one finally a winner?
Choice 1 YES, because the licensing structure discriminates against out-of-state residents and is not closely related to a substantial state interest.
Choice 2 YES, because the price disparity is significant.
Choice 3 NO, because out-of-state residents can still obtain licenses.
Choice 4 NO, because hunting is not a fundamental right.
The Privileges and Immunities Clause protects individuals from discrimination from State A if the individual:
Choice 1 Is a resident of State A but a citizen of some other state.
Choice 2 Is a citizen of state A but a resident of some other state.
Choice 3 Either (a) or (b).
Choice 4 Is a resident and a citizen of another state, as these terms are interchangeable for purposes of the Privileges and Immunities Clause.

© 2003 - 2007 National Paralegal College