Business Law

1
Business Law

• Chapter 4
• Constitutional Law

2
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.

3
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

4
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.

5
Constitutional Powers

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

6
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.

7
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.

8
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

9
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.

10
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

11
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.

12
Bill of Rights

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

13
First Amendment

• Freedom of Speech
• Freedom of Religion

14
Freedom of Speech

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

15
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

16
Unprotected Speech

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

17
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

18
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

19
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

20
Equal Protection

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

21
Basis for Distinction

• Legitimate government interest
• Important government objectives
• Compelling government interest