Chapter 02 Business and the Constitution

Fitters Hardware, Inc. is being sued by a competitor for antitrust violations. The CEO of Fitters Hardware, Inc., Sam, has been embezzling money from the corporation for years. In the discovery phase of the lawsuit, the plaintiff requests all the business records of Fitters Hardware. Sam refuses to give the plaintiff these records, knowing they will incriminate Sam. Will Sam have to give the records to the plaintiff?

Yes, because the Fifth Amendment's guarantee against self-incrimination does not apply to corporations.

Ohio passes a law requiring that anyone working in Ohio, but living in a different state, must pay a yearly occupational tax of $5,000. Barb, a Kentucky resident working in Ohio, sues and argues that this law is unenforceable. Will Barb likely be successful in court?

Yes, because this law violates the privileges and immunities clause.

Officer Patel believes Emma burglarized a house on Main Street. Officer Patel wants to search Emma's house to try to obtain evidence of Emma's involvement in the burglary. To obtain a search warrant, Officer Patel must prove

that police officers have probable cause to believe Emma burglarized the house.

A networking club begun in North Carolina by a state university requires that all its members be under the age of 30, have college degrees, and be men. Rachel wants to join this club and is denied admission due to her gender. Rachel sues and argues that the club violates the Fourteenth Amendment guarantee of equal protection. The club defends itself by saying that the men in the club need the restriction because including women would stifle their expression. Will the club win this case, or will Rachel?

Rachel, because stifling the men's expression is not related to an important government objective.

State regulatory powers are referred to as police powers.

True

The due process clause states that no person shall be deprived "of life, liberty, or property, without due process of law."

True

Rita lives in Butler, Tennessee, and rents a condo there. Robert also lives in Butler, Tennessee, and owns a condo. Rita does not receive a tax deduction for the rental condo. Robert does receive a tax deduction for the owned condo. Does this violate the Fourteenth Amendment?

No, because Rita rents and Robert owns, so they are not similarly situated individuals.

In a federal form of government, the national government is the sole sovereign power.

False

The Bill of Rights protects individuals against various types of interference by other individuals.

False

The USA Patriot Act gives United States citizens the right to sue the government when the government gains access to personal financial information and student information.

False

Georgia completes a multi-year study that finds that trains longer than 20 train cars put a substantial burden on Georgia railroads, costing Georgia taxpayers $10 million per year in repairs. This same study also found that accidents at railroads increase by 2% for every additional train car added, costing Georgia taxpayers $3 million per year in additional medical costs. Based on this study, Georgia passes a law that requires all trains moving through Georgia to be 20 train cars or less in length. When this law is challenged in court, what will the court consider in rendering its decision?

Georgia's interest in regulating the length of train cars and the burden Georgia's regulation places on interstate commerce.

What did the case Gibbons v. Ogden hold?

In Gibbons v. Ogden, the United States Supreme Court held that commerce within the states could be regulated by the national government if the commerce substantially affected commerce involving more than one state.

What did the U.S. Supreme Court hold in the Griswold v. Connecticut case?

In the Griswold v. Connecticut case, the U.S. Supreme Court held that a constitutional right to privacy was implied by the First, Third, Fourth, Fifth, and Ninth Amendments.

The state of Indiana is concerned about an increase in drug overdose deaths among Indiana residents. The state legislature passes a law that states that all prescriptions written by a doctor for a drug that could have addictive effects must be signed by two doctors to be filled by any Indiana pharmacy. Dr. Jones believes the Indiana state legislature does not have the power to pass such a law and sues the state of Indiana to bar enforcement of this law. What argument may the state of Indiana make in court to support the power of the state to pass such a law?

Indiana may argue that the state has the power to pass this law pursuant to the police powers of the state.

In an equal protection inquiry, when a law or action distinguishes between or among individuals, the basis for the classification is examined. Depending on the classification, the courts apply different levels of scrutiny to determine whether the law or action violates the equal protection clause. What are these standards?

Strict scrutiny, intermediate scrutiny, and the rational basis test

Georgia completes a multi-year study that finds that trains longer than 20 train cars put a substantial burden on Georgia railroads, costing Georgia taxpayers $10 million per year in repairs. This same study also found that accidents at railroads increase by 2% for every additional train car added, costing Georgia taxpayers $3 million per year in additional medical costs. Based on this study, Georgia passes a law that requires all trains moving through Georgia to be 20 train cars or less in length. When this law is challenged in court, what will the court likely decide?

That the law may not be enforced due to the substantial burden placed on interstate commerce.

Jackie and Tyler are married and have lived in Nebraska for 5 years. Jackie and Tyler decide to divorce and file for divorce in Nebraska. The couple receive a Nebraska divorce decree which divides up their marital debt and marital property and gives Jackie physical custody of their child. A year later, Tyler moves to Kansas. In the Nebraska divorce decree, Jackie was required to pay off a mortgage on property the couple owned at the time of their divorce. Jackie has still not paid off this mortgage. Because Tyler now lives in Kansas, Tyler asks the Kansas court to enforce the Nebraska divorce decree and order Jackie to pay off the mortgage. What will the Kansas court decide?

The Kansas court will honor the Nebraska divorce decree and order Jackie to follow the Nebraska divorce decree order.

Which constitutional clause has had a greater impact on business than any other constitutional provision

The commerce clause

Andrea has a small garden in her backyard in Vermont that she maintains by buying seeds and plants from California, and by using gardening tools made locally by her friend Bob. This summer, Andrea had more tomatoes than she had expected. Because of this, Andrea sold her tomatoes at a local farmer's market at a price much lower than the local grocery store price. Some neighbors did buy Andrea's tomatoes, but they bought tomatoes at the local grocery store as well. Because Andrea sold some of her tomatoes, Andrea also bought tomatoes during the summer at a local grocery store. What impact does the commerce clause have on Andrea?

The commerce clause covers these transactions because they have a substantial effect on interstate commerce.

On the Beat magazine is distributed for free in local kiosks found on sidewalks. The magazine investigates the local city council and finds evidence of wrongdoing, including embezzlement and solicitation of contract bids for local building projects. On the Beat then begins printing articles criticizing city council members and asking for their removal. Soon after these articles are published, the city council passes a law making it illegal to use kiosks on sidewalks to distribute free newspapers and magazines, stating that banning these kiosks reduces litter. On the Beat challenges the law in court, arguing that the law will force the magazine to end publication and thus violates the freedom of speech of the journalists. What will the court likely decide in this case?

The court will likely find that the interest of the city council in reducing litter is not compelling and can be furthered in a way that does not infringe on the rights of the journalists to exercise their freedom of speech.

Travis and LeeAnn attend a church that requires its parishioners not to vaccinate their children. Travis and LeeAnn have two daughters. The couple divorce, and LeeAnn stops attending the church. LeeAnn takes their daughters to a doctor to be vaccinated. When Travis discovers this, he asks the court to order that LeeAnn not take their daughters to be vaccinated again. Travis argues that these vaccinations violate his right to freely exercise his religion under the First Amendment. What will the court likely rule?

The court will likely rule that LeeAnn may take their daughters to be vaccinated and that this does not violate Travis's right to freely exercise his religion.

On the Beat magazine is distributed for free in local kiosks found on sidewalks. The magazine investigates the local city council and finds evidence of wrongdoing, including embezzlement and solicitation of contract bids for local building projects. On the Beat then begins printing articles criticizing city council members and asking for their removal. Soon after these articles are published, the city council passes a law making it illegal to use kiosks on sidewalks to distribute free newspapers and magazines, stating that banning these kiosks reduces litter. On the Beat challenges the law in court, arguing that the law will force the magazine to end publication and thus violates the freedom of speech of the journalists. What will the court consider in making its decision?

The interest of local government, the city council, will be balanced against the journalists' constitutional right to free expression.

What does the dormant commerce clause mean regarding the power of the national government and state governments?

The states do not have the authority to regulate interstate commerce.