South-Central Timber Development, Inc. v. Wunnicke, Commissioner, Dept. of Natural Resources of Alaska
United States Supreme Court
467 U.S. 82 (1984)
Alaska's Department of Natural Resources (defendant) required that all state-owned timber it sold be processed within Alaska before being shipped out of state; South-Central Timber Development (plaintiff), an Alaska timber retailer that sold mostly unprocessed timber to out-of-state buyers and didn't operate its own in-state mill, sued to enjoin the in-state processing requirement as a violation of the dormant Commerce Clause. The district court agreed and enjoined the requirement, but the court of appeals reversed, and the Supreme Court granted certiorari.
Whether a state acting as a market participant may impose conditions on commercial transactions that burden industry both within and outside the particular market in which the state participates.