[Nanodik]

The federation is in no position to make such an extravagant demand as to have the ability to declare any state law unconstitutional.

It most certainly does. Think of one state negotiating a treaty with France. How about Virginia placing a tariff on goods from Maryland? There were certain areas that the federal government was empowered above the states, albeit few.

[NutCrackerBoy]

Sure. The states of a federation agree to strictly abide by certain rules, else they will be cut off. Otherwise, it would defeat the purpose of having a federation.