An instrumentality is the method used to accomplish an action. Instrumentalities appear in constitutional law, especially with regards to the Commerce Clause, and business law.
Under the Commerce Clause of the US Constitution, Congress has the power to regulate interstate commerce. In US v. Lopez (1995), the Supreme Court identified the instrumentalities of interstate commerce as a topic over which Congress has the power to legislate. In this sense, an instrumentality of commerce includes methods for transporting goods and services including cars, trucks, ships, airplanes, etc. In commerce clause jurisprudence, instrumentalities are distinct from channels which include highways, bridges, canals, airports, etc.
In corporate law, the instrumentality rule allows the corporate structure to be disregarded to hold shareholders directly liable for the actions of a corporation when the corporation is indistinct from the shareholders.
[Last updated in June of 2023 by the Wex Definitions Team]
- Keywords