Bài giảng Business Law (13th edition) - Chapter 3: Business & The Constitution

Foundations of American LawThe Nature of LawThe Resolution of Private DisputesBusiness and The ConstitutionBusiness Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking1McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Business & The ConstitutionPAETRHC3"The very idea of the power and the right of the People to establish government presupposes the duty of every Individual to obey the established Government." -- George Washington (Farewell Address, September 19, 1796)Learning ObjectivesBasics of the Constitution and federalismRelationship between federal and state powersImportant legal principles: supremacy, preemptionConstitutional guarantees and limitations3 - *Overview of the ConstitutionEstablishes a tripartite government to ensure a separation of powersA system of checks and balances exists in which no one branch may control another3 - *The Power to RegulateFederal government has exclusive power to administer certain national concerns, such as war and currencySome powers are shared with the statesStates possess exclusive power to enact laws to protect general welfare, health, and safety3 - *Supremacy & PreemptionThe Constitution and statutes enacted by Congress, including treaties, are the supreme law of the landCongress may enact laws on certain issues and preempt state regulation of that issue 3 - *Testing ConstitutionalityCourts apply a means-ends test to review allegedly unconstitutional statuteRational basis test (minimal scrutiny)if law has rational basis, it will standIntermediate scrutinylaw must substantially relate to important governmental objectives to standStrict scrutinyLaw presumed invalid if, on its face, it is based on race, ethnicity, and religion3 - *The Commerce PowerCommerce clause (Article I, Section 8, Clause 3) applies to interstate commerceSupreme Court has applied the power to intrastate commerce when the activity affects interstate commerceSee Gonzales v. Raich3 - *The First AmendmentFirst Amendment guarantees freedoms of religion, speech, press, assembly, and petition to individuals (and corporations)Restriction on commercial speech is valid if it (1) seeks to implement a substantial government interest, (2) directly advances interest, and (3) is least restrictive method of achieving interest (see Kasky v. Nike)3 - *Constitutional LimitationsFifth Amendment prohibits federal government from depriving “any person of life, liberty, or property without due process of law” (due process clause)Protection from unreasonable procedures or unreasonable lawsApplied to states through Fourteenth Amendment3 - *Constitutional LimitationsEqual protection clause of Fourteenth Amendment prohibits a government from treating one person differently than another without reasonable grounds for differentialBasic test: rational basis (minimal)“Suspect” classifications (race, gender, ethnicity) require higher level of scrutiny3 - *Constitutional LimitationsPhrase “depriving a person of property” known as the takings clauseRequires government to pay compensation to property owner for taking property for public purpose through eminent domain3 - *Test Your KnowledgeTrue=A, False = BThe Constitution establishes a tripartite governmentThe federal government has exclusive power over matters of war and taxationStates possess exclusive power to enact laws to protect welfare, health, and safetyThe Fifth Amendment prohibits depriving any person of life, liberty or happiness Federal supremacy means that the U.S. Constitution is the supreme law of the land3 - *Test Your KnowledgeTrue=A, False = BThe Federal government may not interfere with interstate commerceThe federal government may not restrict individual or commercial speechConstitutional limitations on governmental power includes the Fifth AmendmentThe “takings clause” means that the federal government cannot take away an individual’s freedom3 - *Test Your KnowledgeMultiple ChoiceCourts apply a means-ends test to review an allegedly unconstitutional statute. Which level of scrutiny applies to a statute that gives benefits to people based on their religion?(a) Minimal scrutiny(b) Intermediate scrutiny(c) Strict scrutiny3 - *Test Your KnowledgeMultiple ChoiceSubstantive due process refers to a prohibition against:(a) Unreasonable procedures(b) Unreasonable laws(c) Unreasonable (unfair) results(d) Both A & B(e) All of the above3 - *Thought Question3 - * What constitutional issues are important to you?