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What happens when state law conflicts with federal law? The answer relies on the doctrine known as federal preemption. The Supremacy Clause is a clause within Article VI of the U.S. Constitution which dictates that federal law is the supreme law of the land.
States have no power to issue business licenses. Federal laws can override state laws. States cannot regulate local commerce. laws cannot interfere with business competition. A: Supreme Court case Gibbons v. Ogden demonstrated that Federal laws can override state laws. Log in to see more information. Supreme Court case Gibbons v. Ogden demonstrated that Federal laws can override state laws.