Bus. Law Ch 6 - The Constitution

Contract Clause

clause of the U.S. Constitution states that no state shall pass any law impairing the obligation of contracts.

In the context of business regulation, the dormant commerce clause concept refers to _____.

the limitations imposed by the U.S. Constitution on police powers

Under the minimum rationality approach, a law creating different classifications will survive an equal protection challenge if it has a _____.

rational connection to a permissible state end

The Bill of Rights lays down _____.

statements of individuals' freedoms and protections from government action

Courts may be called upon to decide if a state law is invalid because it conflicts with a federal law under the _____ clause of the U.S. Constitution.

supremacy

In which of the following situations do state regulations become void? (Check all that apply.)

When the federal government has preempted the field When state law is inconsistent with the federal statute

Which of the following do procedural due process cases involve? (Check all that apply.)

Whether proper notice has been given. Whether a proper hearing has been conducted

Thirteenth Amendment

abolished slavery

Supremacy Clause

Constitution is the supreme law of the land. -Federal Laws -State laws follow suit.

Free Exercise Clause

A First Amendment provision that prohibits government from interfering with the practice of religion.

Identify the features of the strict scrutiny test under the equal protection clause of the U.S. Constitution. (Check all that apply.)

A classification will be a denial of equal protection unless it is necessary to achieve a compelling state purpose. The law must serve important governmental objectives to withstand constitutional challenge when this test is used.

Fifth Amendment

A constitutional amendment designed to protect the rights of persons accused of crimes, including protection against double jeopardy, self-incrimination, and punishment without due process of law. This is for Federal. 14th is for state and local.

libel

A defamatory written statement communicated to a third party.

Quasi-strict scrutiny

A legal test used by courts to test the validity of governmental action, such as legislation, under the equal protection clause of the U.S. Constitution. To satisfy this test, the government needs to demonstrate that the purpose of the action is substantially related to an important governmental objective.

Strict scrutiny

A legal test used by courts to test the validity of governmental action, such as legislation, under the equal protection clause of the U.S. Constitution. To satisfy this test, the government needs to demonstrate that there is a compelling state interest justifying the government's action.

minimum rationality

A legal test used by courts to test the validity of governmental action, such as legislation, under the equal protection clause of the U.S. Constitution. To satisfy this test, the government needs to demonstrate that there is a good reason for the government's action.

prior restraint

A principle applicable under the freedom of press and speech clauses of the First Amendment of the U.S. Constitution. The courts have announced decisions that encourage governments to allow the publication or expression of thoughts rather than to restrain such thoughts in advance of their publication or expression.

Due Process Clause

A provision found in the Fifth and 14th Amendments of the U.S. Constitution. This clause assures all citizens of fundamental fairness in their relationship with the government.

Commerce Clause (Article 1, Section 8)

A provision in Article I, Section8, of the U.S. Constitution that grants the federal government the power to regulate business transactions. The federal government can allow commerce with restrictions.

equal protection clause

A provision in the 14th Amendment of the U.S. Constitution that requires all citizens to be treated in a similar manner by the government unless there is a sufficient justification for the unequal treatment.

overbreadth doctrine

An individual whose own speech and conduct may not be prohibited is still allowed to challenge a statute that limits speech because others who may desire to engage in legally protected expression may refrain from doing so because of the fear of prosecution under the statute.

Identify the true statements about the basic protections provided by the U.S. Constitution. (Check all that apply.)

Constitutional guarantees exist in order to protect the minority from the majority. Constitutional guarantees and the extent of their limitations depend on the nature of competing public policies.

True or false: The concept of preemption does not apply to federal statutes and the rules and regulations of federal administrative agencies.

False

Identify the true statements about freedom of commercial speech provided by the U.S. Constitution.

Freedom of commercial speech protects individuals as well as corporations. Freedom of commercial speech protects the public's right to information by allowing corporations to add to the public's knowledge.

Identify the true statements about freedom of the press.

Freedom of the press is not absolute. Freedom of the press is usually construed to prohibit prior restraints on publications.

takings clause

Government can take private property for a public purpose, but it must provide fair compensation to the owners of that property.

Which of the following is the meaning of the term "due process of law"?

Government may not act in a manner that is arbitrary, capricious, or unreasonable.

Which of the following does the commerce clause prohibit state laws from doing?

Imposing undue burdens on interstate commerce

Article VI

It clarifies that federal laws take priority when there is a conflicting state or local law. describes how this Constitution will be the supreme law of the land.

Fourteenth Amendment

It contains a due process clause applicable to local and state governments.

Identify the various aspects of freedom of speech protected by the First Amendment to the U.S. Constitution.

It covers both verbal and written communications. It means freedom to express ideas antagonistic to those of the majority. It covers conduct or actions considered symbolic speech.

Preemption

It deems a state law unconstitutional if it attempts to regulate an activity that has been preempted by a federal law.

Constitution Article IV

It ensures that one nation versus individual states will provide the framework for commercial activities and citizenship. This article contains the full faith and credit clause and the privileges and immunities clause.

Constitution Article V

It provides the process governing the amendment of the Constitution.

Constitution Article VII

It states that the Constitution will become effective upon ratification of the states.

Identify the provisions of the Fourteenth Amendment to the U.S. Constitution.

No state shall deny to any person within its jurisdiction the equal protection of the laws. No state shall deprive any person of life, liberty or property, without due process of law. No state shall enforce any law which shall abridge the immunities or privileges of citizens of the United States.

Second Amendment

Right to bear arms

commercial speech

Speech that has a business-oriented purpose. This speech is protected under the First Amendment, but this protection is not as great as that afforded to noncommercial speech.

In the context of business regulation, which of the following limitations on police powers are included in the dormant commerce clause concept? (Check all that apply.)

State regulations must not be arbitrary, capricious, or unreasonable. State regulations must not violate the commerce clause of the U.S. Constitution.

Strict Scrutiny

Supreme Court rule that classification by race and ethnic background is inherently suspect and must be justified by a "compelling public interest." The classifications are usually found to be unconstitutional under the equal protection clause.

Constitution Article 1

The Powers, Eligibility Requirements and Limitations of the Legislative Branch. It gives the power to the government to regulate business.

Commerce Clause

The _____ of the U.S. Constitution declares that Congress shall have power to control trade with foreign nations, among several states, and with the Indian tribes. Regulation of foreign commerce. Possible limitations on federal regulatory authority.

Police Powers

The authority of the state and local governments to regulate business activity

Sixteenth Amendment

The constitutional amendment adopted in 1913 that explicitly permitted Congress to levy an income tax.

eminent domain

The government's constitutional power to take private property for public use upon the payment of just compensation.

Identify the true statements about court actions and laws associated with the minimum rationality approach.

The laws often involve economic issues or social legislation such as welfare laws. The courts will assume any statement of facts that can be used to justify the classification.

Identify the true statements about the relationship between Congress and the interstate commerce of the United States. (Check all that apply.)

The persons engaged in interstate commerce as well as the activities affecting it are regulated by Congress. The power of Congress over commerce is very broad; it extends to all interstate commerce, be it great or small.

Identify the true statements about the relationship between Congress and the interstate commerce of the United States. (Check all that apply.)

The power of Congress over commerce is very broad; it extends to all interstate commerce, be it great or small. The persons engaged in interstate commerce as well as the activities affecting it are regulated by Congress.

Procedural Due Process

The process or procedure ensuring fundamental fairness that all citizens are entitled to under the U.S. Constitution.

Dafamation

The publication of anything injurious to the good name or reputation of another.

Which test or approach under the equal protection clause of the U.S. Constitution is used if a classification involves either a fundamental constitutional right or a suspect class?

The strict scrutiny test

In the context of business regulation, identify a true statement about police powers.

They require state legislation and regulation to protect the public's health, safety, morals, and general welfare.

True or false: In the context of the equal protection clause of the U.S. Constitution, classifications that are subject to strict judicial scrutiny are presumed to be fair and reasonable.

This is false. Classifications that are subject to strict judicial scrutiny are presumed to be unconstitutional and require the state to convince the court that the classifications are fair and reasonable according to the equal protection clause of the U.S. Constitution.

True or false: According to the U.S. Constitution, freedom of commercial speech for corporations is always as extensive as the right of an individual.

This is false. Freedom of commercial speech for corporations may not be as extensive as the right of an individual. However, a government cannot limit commercial speech without a compelling state interest expressed to justify the restriction.

True or false: Procedural due process cases cannot involve procedures that are not created by statute.

This is false. Procedural due process cases frequently involve procedures established by statute. However, many cases involve procedures that are not created by statute.

True or false: The overbreadth doctrine was used by the U.S. courts to declare all versions of child pornography laws constitutional.

This is false. The overbreadth doctrine was used by the courts to declare certain versions of child pornography laws unconstitutional. Governmental restrictions on expression must be narrowly drafted.

True or false: Labeling an activity an "intrastate" or "local" activity prevents Congress from regulating it under the commerce clause of the U.S. Constitution.

This is false. The power of Congress over commerce is very broad; it extends to all commerce, be it great or small. Labeling an activity a "local" or "intrastate" activity does not prevent Congress from regulating it under the commerce clause of the U.S. Constitution because its power extends to intrastate activities that affect intrastate commerce.

Federalism

each level of government has a distinct and separate role to play

According to the U.S. Constitution, the due process clause applies only to _____.

governmental bodies

According to the Second Amendment to the U.S. Constitution, an act is said to be unconstitutional if it _____.

infringes the right of people to keep and bear arms

An individual whose own speech and conduct may not be prohibited is still allowed to challenge a statute that limits speech because others who may desire to engage in legally protected expression may refrain from doing so because of the fear of prosecution under the statute. This is known as _____.

the overbreadth doctrine