Which of the following statements is true of the contract clause?
A) It applies to the federal government.
B) It allows a state to impose new prices on existing contracts.
C) It prohibits the federal government from contracting with a state government.
D) It does not restrict the federal government's power to impact contractual relationships.
E) It allows a state to enact laws even if they impact rights under existing contracts.

Question

Quizplus · Accepted Answer

Under the contract clause, states cannot enact laws that impact rights and duties under existing contracts. It does not restrict the federal government's power to impact contractual relationships.

Which of the Following Statements Is True of the Contract