Business Law

Chapter 4 Constitutional Law

Objectives
Define the basic structure of the U. S. government. State the constitutional clause that gives the federal government the power to regulate commercial activities among the states.

Objectives
Identify the constitutional clause that allows federal laws to take priority over conflicting state laws. Describe the Bill of Rights Identify the freedoms that the First Amendment guarantees

U. S. Constitution
Delegates to the national convention wrote the U. S. Constitution to solve problems for commerce and to give the national government authority to demand revenues. Ratified by the states in 1789.

Constitutional Powers
Federal Form of Government
States form a union and sovereign power is divided between a central government and the member states.

Separation of Powers
Legislative Branch
Makes the laws

Executive Branch
Enforces the laws

Judicial Branch
Interprets the laws

Each branch exercises a check on the actions of the others.

Commerce Clause
Article I, Section 8
The Constitution expressly delegated to the national government the power to regulate interstate commerce.

This clause has had a greater impact on business than any other provision in the Constitution.

Commerce Clause
Federal regulation of activities
No justification for regulation of noneconomic conduct

State regulatory power

All powers not delegated to the national government police powers

Dormant Commerce Clause

When state regulations impinge (encroach) on interstate commerce Courts weigh the states interest in regulating a certain matter against the burden that the states regulation places on interstate commerce.

The Supremacy Clause

Article IV The Constitution, laws, and treaties of the U. S. are the supreme Law of the Land Federal law prevails over conflicting or concurrent state laws

Taxing and Spending Powers

Congress has the power to impose taxes as long as all states are taxed. Congress has the power to spend revenues collected to promote any objective it deems necessary, so long as it does not violate the Constitution.

Bill of Rights
The Constitutions first ten amendments. A series of protections for the individual against various types of interference by the federal government.

First Amendment
Freedom of Speech Freedom of Religion

Freedom of Speech
Most prized freedom Includes symbolic speech, corporate political speech, and commercial speech Commercial speech may be restricted to protect consumers

Commercial Speech
Restriction valid if:
Seeks to implement a substantial government interest Must directly advance that interest Must go no further than necessary to accomplish its objective

Unprotected Speech
Speech that harms the good reputation of another Defamatory speech Threatening speech Fighting words Obscene speech

Online Obscenity
Child Online Protection Act of 1998 crime to communicate material over the Internet that is harmful to minors Childrens Internet Protection Act of 2000 public schools and libraries required to have filtering software

Freedom of Religion
Establishment Clause
Prohibits the government from establishing a state-sponsored religion

Free Exercise Clause

Guarantees a person can hold any religious belief or no religious belief
Unless against public policy and welfare

Due Process
Fifth and Fourteenth Amendments
No person shall be deprived of life, liberty, or property, without due process of law.

Procedural requires fair decisions Substantive focuses on content of lawlimitations must promote a compelling or overriding state interest

Equal Protection
Fourteenth Amendment
A state may not deny to any person within its jurisdiction the equal protection of the laws.

Basis for Distinction

Legitimate government interest Important government objectives Compelling government interest