Business Law Chapter 2 - Business and the Constitution

Content-Neutral Laws

laws that regulate the time, manner, and place - but not the content - of speech receive less scrutiny by the courts --> laws that restrict content of speech must have a compelling government interest

Gibbons v. Ogden (1824)

the congressional power to regulate interstate commerce was further defined in this case and it includes regulation of activities that "substantially affect interstate commerce"

Bill of rights

the first ten amendments of the constitution; all apply to natural persons and most apply to business entities as well

due process

the government cannot deprive you of life, liberty, or property without following certain procedures and protocols

establishment clause

prohibits government from establishing a state sponsored religion or passing laws that favor one over the other

fourth amendment

requires law enforcement officers to have a search warrant before searching or seizing private property; officers must have probable cause in order to get a search warrant; search warrants must be specific; general searches through personal belongings are illegal; usually business inspectors must have a warrant, though a warrantless search is permissible for seizure of spoiled or contaminated food

Freedom of speech

right to free speech is the basis for out democratic government; free speech includes symbolic speech which includes gestures, movements, articles of clothing

Federal Form of government

shares power between national and state governments; each U.S. state government has inherent sovereignty (power to govern itself); as a result, states also have police powers (the ability to regulate certain affairs within their borders)

State police powers

states generally have the ability to regulate health, safety, public order, and general welfare of their citizens; ex: building codes, zoning restrictions

scrutiny

tests

intermediate scrutiny

inquiries involving discrimination based on gender and legitimacy

"rational basis" test

inquiries involving economic or social welfare

strict scrutiny

inquiries involving the exercise of fundamental rights

Citizens United v Federal Election Commission (2010)

A corporation is an artificial person, therefore corporations have the same fundamental rights as individuals including, but not limited to: the ability to donate money to political campaigns, freedom of speech, freedom of press, etc

Taxing and Spending Powers

Congress has the "Power to lay and collect taxes, duties, imposts, and excise" which shall be "uniform" among the states

Cases involving the use of the "dormant" commerce clause

Family Winemakers of California v. Jenkins (2010) and Tri-M Group, LLC v. Sharp (2011)

Preemption

a doctrine under which certain federal laws preempt (or take precedence over) conflicting state or local laws; in case of direct conflict between state and federal law, state law is invalid; or if there is a federal regulatory agency that is empowered to enforce federal law

System of Checks and Balances

allows each branch to limit the actions of the other two branches; this system prevents any one branch from exercising too much power

procedural due process

any government decision to take life, liberty, or property must be made equitably and fairly; a person must be given proper notice and opportunity to be heard

Privileges and Immunities Clause

article IV of the U.S. Constitution states that "citizens of each state shall be entitled to all privileges and immunities of citizens in the several states"

Reasonable restrictions

balance between government's obligations to protect and citizen's exercise of rights

the legislative branch checks and balances

can override the president's veto 2/3 vote; can define the jurisdiction of the judiciary; must confirm judiciary appointees; has the ability to send court cases to whichever court they see fit

Abercrombie and Fitch v EOC (2015)

employers must reasonably accommodate sincerely held beliefs of their employees; the government can act in protecting the public when religious practices work against public policy and welfare

the commerce clause

empowers congress to regulate commerce with foreign nations and among the several states, and with native american groups; prevents states from establishing laws and regulations that would interfere with trade and commerce among the states without a compelling reason

Full Faith and Credit Clause

ensures that any judicial decision with respect to civil judgements will be honored and enforced in all states

Freedom of religion

first amendment may not establish a religion or prohibit the free exercise of religion

substantive due process

focuses on the content of legislation (the right itself) instead of the fairness procedures (government must have a compelling reason to try and take away a fundamental right); limits what the government may do in its legislative and executive capacities

free exercise clause

guarantees a person's right to freely exercise her religion

fifth amendment

guarantees that no person can be compelled to testify against themself in a criminal proceeding; the guarantee does not extend to corporations or partnerships

the executive branch checks and balances

has the power to veto legislation passed by congress; can appoint the members of the judiciary

the judicial branch checks and balances

has the power to void the acts of the executive and legislative branches because they are unconstitutional

Wickard v. Filburn

in 1942, the supreme court expanded commerce clause to purely intrastate business

Limits on federal and state action

originally, the bill of rights was a limit on the national government's powers; over time, it was incorporated to states via the due process clause; rights are not absolute

Separation of Powers

the national government is composed of three separate branches: legislative (congress: creates laws), executive (president: enforces laws), and judicial (courts: interpret laws)

Example of Preemption

the supreme court has allowed the federal government to regulate noncommercial activities relating to medical marijuana that take place wholly within a state's borders. more than thrity-three states have now adopted laws that legalize marijuana for medical purposes (and eleven states permit the recreational use of majijuana, <21 years of age)

equal protection clause

the supreme court has interpreted the due process clause of the fifth amendment to make it applicable to the federal government as well; government must treat similarly situated individuals (or businesses) in the same manner

the "dormant" commerce clause

when state regulations interfere with interstate commerce, courts must balance the state's interest against the burden that the regulation places on interstate commerce