Chapter 4: Business and the Constitution

In an equal protection inquiry, when a law or action distinguishes between or among individuals, the basis or classification, is examined. Depending on the classification, the courts apply different levels of scrutiny or "tests" to determine whether the law or action violates the equal protection clause. The courts use one of three standards: strict scrutiny, intermediate scrutiny, or the

"Rational Basis" test

Generally, few laws or actions survive

A strict-scrutiny analysis by the courts

Article 1, Section 8, of the U.S. Constitution impacts business greatly and is referred to as the:

Commerce Clause

The courts also give substantial protection to advertising and marketing communications made by business firms that involve only their commercial interests. This type of communication is referred to as

Commercial speech

Our federal form of government is a

Compromise form of government where the national government and the states share sovereign power

The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. Keller mounted a speaker on a truck. Through the speaker, he played music and spoke on a microphone while driving on city streets. Keller was convicted and fined $50. He appealed, arguing that the ordinance violated his rights of free speech and free assembly. The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly, and did not prohibit or unduly restrict any particular speech. The court probably found that the ordinance was

Constitutional as a reasonable restriction on fundamental rights

Executive Branch

Enforces the laws

Ninth Amendment

Establishes that the person have rights in addition to those specified in the Constitution

State laws that allow the use of medical marijuana insulate users in those states from federal prosecution.

False

Symbolic speech is NOT covered by the Bill of Rights.

False

The U.S. Constitution created a

Federal form of government

The First Amendment of the U.S. Constitution is made up of two parts, the establishment clause and the

Free exercise clause

First Amendment

Guarantees the freedoms of religion, speech, and the press and the right to assemble peaceably and to petition the government

Responding to the growing need to protect the privacy of individuals' health records—particularly computerized records—Congress passed the

Health Insurance Portability and Accountability Act of 1996

Provisions of the Fifth and Fourteenth Amendments guarantee that no person shall be deprived of life, liberty, or property without due process of law and this clause applies to all "legal persons," including:

Individuals and corporations

The USA Patriot Act has given government officials increased authority to monitor

Internet activities and to gain access to personal financial information and student information

Judicial Branch

Interprets the laws

Which of the following would NOT be regulated at the state level?

Interstate commerce

Substantive Due Process

Limits What Government may do in its legislative and executive capacities legislation must be fair and reasonable

Legislative Branch

Makes the laws

Your state legislature passes a law prohibiting students from criticizing actions taken by the governor. Does this new law further a legitimate government objective?

No, because it is a violation of free speech protections

If you are a farmer who grows and sells locally, can you conclude that the Commerce Clause does NOT apply to your activities and actions?

No, because the Supreme Court and Congress have interpreted the Commerce Clause extremely broadly.

Your state passes a law prohibiting businesses from supporting political candidates. You go to court and challenge the law's constitutionality. Will the law be upheld?

No, because the law is an unconstitutional restriction of free speech

A state legislature passes a statute prohibiting businesses from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will the law be upheld?

No, because the law is an unconstitutional restriction on free speech.

You have an unrestricted license to operate a tourist boat in a bay off of Maui, Hawaii, which you received from the federal government. The state tells you that it has decided not to allow commercial use of that area. Will the new state action be upheld in the courts when you sue?

No, because the state action will be held unconstitutional under the Supremacy Clause

Olga lives in New Jersey and wishes to obtain a business license in New York. New York passes a law requiring nonresidents to pay an additional $1,000 fee for anyone applying from New Jersey. Can New York "get away" with that?

No. The Privileges and Immunities Clause prohibits a discrepancy in fees

State regulatory powers are often referred to as

Police powers

What type of powers do the states have to regulate or prohibit private activities?

Police powers

Article IV, Section 2, of the Constitution provides that the "Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several states." This clause is often referred to as the interstate

Privileges and immunities clause

The due process clause of the Fifth and Fourteenth amendments to the U.S. Constitution has two aspects—substantive and

Procedural

A Kansas City law imposes prison terms without a trial on street entertainers who operate in certain areas. A court would likely review this statute under the principles of:

Procedural due process

Someone tells the dean of your college that he saw you cheating on an exam. The dean kicks you out of school. What type of due process has the dean probably violated?

Procedural due process

Fourth Amendment

Prohibits unreasonable searches and seizures of persons or property

An order from a judge or other public official authorizing a search or seizure is referred to as a

Search warrant

Ocean City passes an ordinance that prohibits all churches from meeting within its city limits. This rule affects the residents' constitutional right to

Substantive due process

All powers expressly "reserved" to the states fall under which amendment?

Tenth

As originally intended, the first ten amendments to the Constitution limited only the power of:

The federal government

Congress sets out a medical-device approval process for the Food and Drug Administration. The law includes a preemption provision. A device that goes through the process injures Eric, who sues under state law to recover. The court will most likely rule that:

The federal law preempts Eric's state law claim

Procedural Due Process

The government must give a person proper notice and an opportunity to be heard so that the procedures are fair

Whenever the language in the Bill of Rights describing a right is overly broad or unclear in a particular situation, what does NOT occur:

The individual state legislatures interpret the unclear language.

Rights established under deeds, wills, and contracts in one state must be honored by other states.

True

When there is a direct conflict between a federal and a state law, the state law is rendered invalid.

True

The Iowa legislature passed a law banning trucks 65 feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Consolidated Freightways (CF) drove big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The court most likely found that the Iowa statute was

Unconstitutional under the "dormant" commerce clause

A Minnesota statute required all operators of slow-moving vehicles to display a fluorescent red triangular sign. Henderson, a member of the Amish religion, was charged with violating the statute. His defense was that the law violated his First Amendment right to freedom of religion because displaying "loud" colors on his slow-moving black buggy conflicted with his religious belief that he should remain separate from the modern world. Henderson stated that he was willing to display the sign if he could use silver, instead of red, reflective tape, which was equally effective. The state argued that the law applied to all equally. The court most likely found that the statute, as it applied to Henderson, was

Unconstitutional under the free exercise clause

Garrett was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett's state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was

Unconstitutional under the supremacy clause

The Fourteenth Amendment does NOT guarantee

freedom of the press