Gibbons v. Ogden established which principle about commerce?

• A. States regulate interstate commerce only
• B. The President controls all commerce
• C. Commerce is not regulated by government
• D. Federal regulation of interstate commerce and states regulate intrastate commerce

Answer: (D)

Interstate commerce is under federal authority, while commerce within a state is managed by that state. Gibbons v. Ogden clarified that the Constitution’s Commerce Clause gives Congress the power to regulate trade and navigation between states, expanding federal reach over activities that cross state lines. This case set up a system of shared power where the federal government handles interstate commerce and states handle intrastate commerce, with federal regulation taking precedence when conflicts arise. That’s why the correct understanding is that the federal government regulates interstate commerce and states regulate intrastate commerce. The other options misstate who has authority or deny government regulation altogether.