The distinction lies in the scope of activity. One term describes actions, commerce, or transportation that cross state lines, while the other refers to activities occurring solely within the boundaries of a single state. For example, a trucking company that delivers goods from New York to California engages in one type of commerce, whereas a delivery service operating exclusively within the city limits of Los Angeles is engaged in the other.
Understanding this difference is crucial for legal and regulatory compliance. Federal laws often govern activities that span multiple states, while state laws predominantly control activities that remain within a single state. Historically, this division of power has been a cornerstone of federalism, with the intention of balancing national unity and state autonomy. Ignoring this demarcation can lead to significant legal and financial repercussions.
