Business L201

• What kinds of cases does the U.S. Supreme Court hear? What is original jurisdiction? What is certiorari jurisdiction?

- Mainly an appellate court. it therefore considers only questions of law when it decides appeals form the federal courts of appeal and the highest state courts. -Today, most appealable decisions from these courts fall within the Supreme Court's certiorari jurisdiction, under which the Court has discretion whether to hear the appeal. The Court hears only a small percentage of the many appeals it is asked to decide under its certiorari jurisdiction. Appeals from the highest state courts are within the certiorari jurisdiction when (1) the validity of any treaty or federal statute has been questioned; (2) any state statute is challenged as repugnant to federal law; or (3) any title, right, privilege, or immunity is claimed under federal law. The Supreme Court usually defers to the states' highest courts on questions of state law and does not hear appeals from those courts if the case involves only such questions.

• When is a motion for summary judgment successful?

it is a device for disposing of relatively clear case without a trial. it differed from demurrer bc it involves factual determinations. To prevail, the party moving for a summary judgment must show that (1) there is no genuine issue of material (legally significant) fact and (2) she is entitled to judgment as a matter of law.A moving party satisfies the first element of the test by using the pleadings, relevant discovery information, and affidavits (signed and sworn statements regarding matters of fact) to show that there is no real question about any significant fact. She satisfies the second element by showing that, given the established facts, the applicable law clearly mandates that she win. Either side may move for summary judgement and if court rules in favor of either party = they win. if denied then case proceeds to trial

federal courts of appeals

- do not engage in fact-finding, instead they review only legal conclusions reached by lower federal courts - there are 13 circuits courts of appeal

the equitable remedies

- injunction = a court order forbidding a party to do some act or commanding him to perform some act -specific performance = whereby a party is ordered to perform according to the terms of her contract -reformation = in which the court rewrites the contract's term to reflect the parties' real intentions -rescission = a cancellation of a contract and a return of the parties to their precontractual position

bicameral legislature

A statute's legislative history includes the following sources: reports of investigative committees or law revision commissions that led to the legislation, transcripts or summaries of hearings of legislative committees that originally considered the legislation, reports issued by such committees, records of legislative debates, reports of conference committees reconciling the chambers' conflicting versions of the law in a bicameral legislature, amendments or defeated amendments to the legislation, other bills not passed by the legislature but proposing similar legislation, and discrepancies between a bill passed by one chamber of a bicameral legislature and the final version of the statute.

• What is a summons?

A summons notifies the defendant that he, she, or it is being sued. The summons typically names the plaintiff and states the time within which the defendant must enter an appearance in court (usually through an attorney).

treaties

According to the U.S. Constitution, treaties made by the president with foreign governments and approved by two-thirds of the U.S. Senate become "the supreme Law of the Land." As will be seen, treaties in- validate inconsistent state (and sometimes federal) laws.

• What kind of 1st Amendment protection does commercial speech receive?

Although corporate speakers have First Amendment rights, not all speech of a corporation is fully protected. Some corporate speech is classified as commercial speech, a category of expression examined later in the chapter. As will be seen, commercial speech receives First Amendment protection but not the full variety extended to political or noncommercial speech. The mere fact, how- ever, that a profit motive underlies speech does not make the speech commercial in nature. Books, movies, televi- sion programs, musical works, works of visual art, and newspaper, magazine, and journal articles are normally classified as noncommercial speech—and are thus fully protected—despite the typical existence of an underlying profit motive. Their informational, educational, artistic, or entertainment components are thought to outweigh, for First Amendment purposes, the profit motive.

• Why does the book claim the U.S. Supreme Court has become "the main 'amender'" of the Constitution?

As a practical matter, the Supreme Court has become the Constitution's main "amender" through its many interpretations of constitu- tional provisions.

jury trials

At the close of a jury trial, the judge ordinarily submits the case to the jury after issuing instructions that set forth the legal rules applicable to the case. The jury then deliberates, makes the necessary determinations of the facts, applies the applicable legal rules to the facts, and arrives at a verdict on which the court's judgment will be based.

• Why is statutory interpretation needed? Why is it difficult?

Because statutes are written in one authoritative form, their interpretation might seem easier than case law reasoning. However, this is not so. The natural ambiguity of language serves as one reason courts face difficulties when interpreting statutes. The problems become especially difficult when statutory words are applied to situations the legislature did not foresee. In some instances, legislators may deliberately use ambiguous language when they are unwilling or unable to deal specifically with each situation the statute was enacted to regulate.

• What is a rational basis review? What types of discriminatory behavior are subject to this test? Good chart on page 104.

Classifications based on one's status as an alien also receive strict scrutiny of some kind, but this standard almost certainly is not as tough as the full strict scrutiny normally used in race discrimination cases. Under the "political function" exception, moreover, laws restricting aliens from employment in positions that are intimately related to democratic self-government only re- ceive rational basis review. This exception has been read broadly to allow the upholding of laws that exclude aliens from being state troopers, public school teachers, and probation officers.

• What are the sources of state and federal regulatory power?

Congress and the state legislatures have concurrent powers. Both can make law within those areas unless Congress preempts state regulation under the Supremacy Clause. A very important state legislative power that operates concurrently with many congressional powers is the police power, a broad state power to regulate for the pub- lic health, safety, morals, and welfare Power Article I, § 8 of the U.S. Constitution specifies a number of ways in which Congress may legislate concerning business and com- mercial matters.

trial courts

Courts Courts of limited jurisdiction find the relevant facts, identify the appropriate rule(s) of law, and combine the facts and the law to reach a decision. State trial courts do the same, but differ from inferior courts in two key ways. First, they are not governed by the subject- matter restrictions or the limits on civil damages or crimi- nal penalties that govern courts of limited jurisdiction. Cases involving significant dollar amounts or major crim- inal penalties usually begin, therefore, at the trial court level. Second, trial courts are courts of record that keep detailed records of hearings, trials, and other proceedings. States usually have at least one trial court for each county. It may be called a circuit, superior, district, county, or common pleas court. Most state trial courts can hear a wide range of civil and criminal cases, with little or no subject-matter restriction. They may, however, have civil and criminal divisions. If no court of limited jurisdiction deals with these matters, state trial courts may also contain other divisions such as domestic relations courts or probate courts.

• What is voir dire? What is a preemptory challenge?

During a pretrial jury screening process known as voir dire, biased potential jurors may be removed for cause. In addition, the attorney for each party is allowed a limited number of peremptory challenges, which allow him to remove potential jurors without having to show bias or other cause. voir dire- is examining the witness or jurors peremptory challenges is when you say you dont want the juror in the trial bc they are biased

• What are the two ways the Constitution limits government power?

First, it restricts federal legislative authority by listing the powers Congress can exercise. These are known as the enumerated powers. Federal legislation cannot be consti- tutional if it is not based on a power specifically stated in the Constitution. Second, the U.S. Constitution limits both state and federal power by placing certain independent checks in the path of each.

venue

In order to render a binding decision in a civil case, a court must have not only subject-matter jurisdiction but also in personam jurisdiction or in rem jurisdiction. Even if a court has jurisdiction, applicable venue requirements must also be satisfied in order for the case to proceed in that court.

trial procedure

Plaintiff's Opening Defendant's Opening Plaintiff's Case in Chief (witnesses and introducing documentary evidence) Defendant's Case in Chief Jury Instructions Plaintiff's Closing Defendant's Closing Verdict

• Explain the importance of government action/state action in finding a constitutional violation.

Private behav- ior that denies individual rights, while perhaps forbidden by statute, is very seldom a constitutional matter. This government action or state action requirement forces courts to distinguish between governmental behavior and private behavior. Judicial approaches to this problem have varied over time.

appellate courts

State appeals (or appellate) courts generally decide only legal questions. Instead of receiving new evidence or otherwise retrying the case, ap- pellate courts review the record of the trial court proceed- ings. Although appellate courts correct legal errors made by the trial judge, they usually accept the trial court's findings of fact. Appellate courts may also hear appeals from state administrative agency decisions. Some states have only one appeals court (usually called the Supreme Court), but most also have an intermediate appellate court. The U.S. Supreme Court sometimes hears appeals from decisions of the state's highest court.

• What does it mean to say that race receives a strict scrutiny review under the 14th Amendment? How does the book explain how the strict scrutiny test is applied to affirmative action policies?

The Supreme Court has sometimes upheld government- required affirmative action plans and what critics have called reverse racial discrimination—government action that ben- efits racial minorities and allegedly disadvantages whites.

• What is jurisdiction generally?

The party who sues in a civil case (the plaintiff) cannot sue the defendant (the party being sued) in whatever court the plaintiff happens to prefer. Instead, the chosen court—whether a state court or a federal court—must have jurisdiction over the case. Jurisdiction is a court's power to hear a case and to issue a decision binding on the parties.

• Explain the preponderance of evidence burden of proof used in civil cases.

To win a civil case, the plaintiff must proves each element of his/her, or its claim by a preponderance of the evidence. this stands of proof requires the plaintiff to show that the greater weight of the evidence- by credibility, not quantity- support the existence of each element.

the answer

Unless the defendant makes a successful motion to dismiss (described later), he must file an answer to the plaintiff's complaint within a designated time after service of the complaint.An answer may also include an affirmative defense to the claim asserted in the complaint. A successful affirmative defense enables the defendant to win the case even if all the allegations in the complaint are true and, by themselves, would have entitled the plaintiff to recover. Furthermore, the answer may contain a counterclaim. A counterclaim is a new claim by the defendant arising from the matters stated in the complaint. Unlike an affir- mative defense, it is not merely an attack on the plaintiffs claim, but is the defendant's attempt to obtain legal relief. In addition to using fraud as an affirmative defense to a plaintiff's contract claim, for example, a defendant might counterclaim for damages caused by that fraud.

• When does discovery occur, what is it?

When a civil case begins, litigants do not always possess all of the facts they need to prove their claims or establish their defenses. To help litigants obtain the facts and to narrow and clarify the issues for trial, the state and federal court systems permit each party to a civil case to exercise discovery rights. The discovery phase of a lawsuit normally begins when the pleadings have been completed. Each party is en- titled to request information from the other party by utilizing the forms of discovery described in this section.

• What is the common law?

also called judge made law or case law. is a law made an applied by judges as they decide cases not governed by statures of other types of law. - only exists only at the state level, both stat and federal courts become involved in applying it

Separation of Powers

ofthe U.S. Constitution establishes the Congress and gives it power to make law in certain areas, provides for a chief executive (the president) whose function is to execute or enforce the laws, and helps create a federal judiciary to interpret the laws.

judgement notwithstanding the verdict

the decision of a court that sets aside the verdict of a jury and reaches the opposite result

• What is federalism?

the states power to make law in certain areas; it structures the relationship between the federal government and the states

original jurisdiction

this means that the US supreme court acts as a trial court.

verdict

- general verdict, which requires only that the jury declare which party wins and, if the plaintiff wins, the money damages awarded. - special verdict may serve to minimize concerns that some observers have about jury decisions. When a special verdict is employed, the jury makes specific, written findings of fact in re- sponse to questions posed by the trial judge. -directed verdict = verdict, takes the case away from the jury and provides a judgment to one party before the jury gets a chance to decide the case. The motion for a directed ver- dict may be made by either party; it usually occurs after the other (nonmoving) party has presented her evidence.

• Describe the different forms of discovery.

-deposition- one of the most frequently employed forms of discovery. during this, one party's attorney conducts and oral examination of the other party or of a likely witness (usually one identified with the other party). court reporter writes down what is said by the deponent (the person answering), and this is under oath just like if they were testifying at trial -interrogatories = are written questions directed by the plaintiff to the defendant, or vice versa. The litigant on whom interrogatories are served must provide written answers, under oath, within a time period prescribed by applicable law (30 days being typical). -requests for admissions = Requests for admissions are one party's written demand that the other party admit or deny, in writing, certain statements of supposed fact or of the application of law to fact, within a time period prescribed by law (30 days again being typical). - requests for production of documents or other physical items (videos, photographs, and the like) are a discovery form employed by the parties in many civil cases. - a party may seek discovery in yet another way by filing a motion for a court order requiring that the opponent undergo a physical or mental examination.

• Define the two types of federal subject-matter jurisdiction.

-diversity jurisdiction = Diversity jurisdiction exists when (1) the case is between citizens of different states and (2) the amount in controversy exceeds $75,000. one traditional justification for diversity jurisdiction is that it may help protect out-of-state defendants from potentially biased state courts. -federal question jurisdiction = exists when the case arises under the constitution, laws, or treaties of the US. the "arises under" requirement normally is met when a right created by federal law is a basic part of the plaintiff's case. Diversity jurisdiction and federal question jurisdiction are forms of subject-matter jurisdiction. Even if one of the two forms exists, a federal district court must also have in personam jurisdiction in order to render a decision that is binding on the parties.

2 general tests a federal laws must meet to be constitutional

1. it must be based on an enumerated power of congress 2. it must not collide with any of the independent checks

• Why did the Court reject class status in Wal-Mart v. Dukes?

In Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011), the Court rejected class status for a group of 1.5 million females employed, or formerly employed, by Walmart. All 1.5 million claimed to have been the victims of sex discrimination during their Walmart employment as a result of a company practice that allowed local store managers very broad discretion in making salary and promotion decisions regarding store employees. the court concluded that even though the plaintiffs all claimed to have experienced sex discrimination as a result of a supposed corporate practice, this surface similarity in the discrimination allegations was not enough to satisfy a key class action certification requirement: the need for the plaintiffs' claims to reflect common questions of law and fact. According to the Court, this "commonality" requirement called for the plaintiffs to show that they "suffered the same injury" in a specific sense.

the reply

In some jurisdictions, the plaintiff is allowed or required to respond to an affirmative defense or a coun- terclaim by making a reply. The reply is the plaintiff's point-by-point response to the allegations in the answer or counterclaim. In jurisdictions that do not allow a reply to an answer, the defendant's new allegations are automati- cally denied. Usually, however, a plaintiff who wishes to contest a counterclaim must file a reply to it.

• What is the difference between subject matter and personal/in personam jurisdiction?

Subject-matter jurisdiction is a court's power to decide the type of dispute involved in the case. Criminal courts, for example, cannot hear civil matters. Similarly, a $500,000 claim for breach of contract cannot be pursued in a small claims court. Even a court with subject-matter jurisdiction cannot de- cide a civil case unless it also has either in personam jurisdiction or in rem jurisdiction. In personam jurisdic- tion is based on the residence, location, or activities of the defendant. A state court has in personam jurisdiction over defendants who are citizens or residents of the state (even if situated out-of-state), who are within the state's borders when process is served on them (even if nonresidents), 1 or who consent to the court's authority (for instance, by entering the state to defend against the plaintiff's claim). The same principle governs federal courts' in personam jurisdiction over defendants.

Substantive Law and Procedural Law - not sure, just in case

Substantive law sets the rights and duties of people as they act in society. Procedural law controls the behavior of government bodies (mainly courts) as they establish and enforce rules of substantive law.law. A statute making murder a crime, for example, is a rule of substantive law. The rules describing the proper conduct of a trial, however, are procedural.

• What are equitable remedies? How do they differ from legal remedies?

The body of law called equity historically concerned itself with accomplishing "rough justice" when common law rules would produce unfair results. it also provided several remedies not available in the common law courts

complaint

The complaint states the plaintiff's claim in separate, numbered paragraphs. It must allege sufficient facts to show that the plaintiff would be entitled to legal relief and to give the defendant reasonable notice of the nature of the plaintiff's claim. The complaint also must state the remedy requested.

ordinances

The enactments of counties and municipalities are called ordinances; zoning ordinances are an example. Ordinances resemble statutes, and the techniques of statutory interpretation described later in this chapter typically are used to interpret ambiguous lan- guage in ordinances.

• Explain the difference between procedural due process and substantive due process.

The traditional conception of due process, called procedural due process, establishes the procedures that government must follow when it takes life, liberty, or property. Procedural due process does not challenge rules of substantive law—the rules that set standards of behavior for organized social life Sometimes, the due process clauses have been used to attack the substance of government action. For our pur- poses, the most important example of this substantive due process occurred early in the 20th century, when courts struck down various kinds of social legislation as denying due process.

• What is a class action? What are justifications for using a class action?

allows one or more persons to sue on behalf of themselves and all others who have suffered similar harm from substantially the same wrong. The usual justifications for the class action are that (1) it allows legal wrongs causing losses to a large number of widely dispersed parties to be fully compensated, and (2) it promotes economy of judicial effort by combining many similar claims into one suit.

precedent

an earlier event or action that is regarded as an example or guide to be considered in subsequent similar circumstances. this practice become formalized in the doctrine of stare decisis (let the decision stand(

• What types of errors do appeals courts decide?

appellate courts consider only alleged errors of law made by the trial court. The matters ordinarily considered "legal" and thus appealable include the trial judge's decisions on motions to dismiss, for summary judgment, for directed verdict or judgment notwithstanding the verdict, and for a new trial.

statues

are laws created by elected representatives in congress or a state legislature

uniform acts

are model statues drafted by private bodies of lawyers and scholars. they do not become law until a llegistaure enacts them. their aim is to produce state-by-sate uniformity

• What is the difference between criminal and civil law?

criminal law is the law under which the government prosecutes someone for committing a crime. ti created duties that are owed to the public as a whole civil law mainly concerns obligations tax private parties owe to each other. it is the law applied when one private party sues another. the gov can be a party to a civil case.

positive law

various types of law. compromises the rules that have been laid down by recognized political authority

pretrial conference

depending on the judgement a pretrial conference is either mandatory or held at the discretion of the trial judge. At this confer- ence, the judge meets informally with the attorneys for both litigants. He or she may try to get the attorneys to stipulate, or agree to, the resolution of certain issues in order to simplify the trial. The judge may also urge them to convince their clients to settle the case by coming to an agreement that eliminates the need for a trial.

• Explain statutory interpretation techniques (plain meaning legislative purpose, legislative history, maxims).

-plain meaning = courts routinely begin their interpretation of a stature with its actual language. if the statues words have a clear, common, accepted meaning, court often employ the plain meaning rule. This approach calls for the court to apply the statute according to the usual meaning of its words, without concerning itself with anything else. legislative history = Courts use legislative history in two overlapping but distinguishable ways. They may use it to determine what the legisla- ture thought about the specific meaning of statutory language. They may also use it to determine the overall aim, end, or goal of the legislation. In this second case, they then ask whether a particular interpretation of the statute is consistent with this legislative purpose. maxims- general rules of thumb employed in statutory interpretation. Notice how each opinion uses plain meaning and legislative history and purpose (with a maxim or two peppered in for good measure) to interpret the language to different conclusions.

• What are priority rules i.e., what type of law takes precedence when two types of law conflict? Focus on just constitutions, statutes, regulations, and caselaw.

1. According to the principle of federal supremacy, the U.S. Constitution, federal laws enacted pursuant to it, and treaties are the supreme law of the land. This means that federal law defeats conflicting state law. 2. Constitutions defeat other types of law within their domain. Thus, a state constitution defeats all other state laws inconsistent with it. The U.S. Constitution, however, defeats inconsistent laws of whatever type. 3. When a treaty conflicts with a federal statute over a purely domestic matter, the measure that is later in time usually prevails. 4. Within either the state or the federal domain, statutes defeat conflicting laws that depend on a legislative delegation for their validity. For example, a state statute defeats an inconsistent state administrative regulation. 5. Statutes and any laws derived from them by delegation defeat inconsistent common law rules. Accordingly, either a statute or an administrative regulation defeats a conflicting common law rule.

• When does federal law preempt state law?

1. There is a literal conflict between the state and fed- eral measures, so that it is impossible to follow both simultaneously. 2. The federal law specifically states that it will preempt state regulation in certain areas. Similar statements may also appear in the federal statute's legislative his- tory. Courts sometimes find such statements persuasive even when they appear only in the legislative history and not in the statute itself. 3. The federal regulation is pervasive. If Congress has "occupied the field" by regulating a subject in great breadth and/or in considerable detail, such action by Congress may suggest an intent to displace state reg- ulation of the subject. This may be especially likely where Congress has given an administrative agency broad regulatory power in a particular area 4. The state regulation is an obstacle to fulfilling the pur- poses of the federal law. Here, the party challenging the state law's constitutionality typically claims that the state law interferes with the purposes she attributes to the federal measure (purposes usually found in its leg- islative history).

• What are the two functions of constitutions?

1. they set up the structure of the government of the political unit they control (a state or the federal government. this involves creating the branches and subdivisions of the gov and stating the powers given and denied to each 2. to prevent the government from taking certain actions or passing certain laws, sometimes even if those actions or laws would otherwise appear to fall within the authority granted to the government under the first function

• When does a court have personal jurisdiction over a defendant? What is a long-arm statute?

In addition, most states have enacted "long-arm" statutes that are designed to give their courts in personam jurisdiction over out-of-state defendants in certain instances. Under these statutes, nonresident individuals and businesses may become subject to the jurisdiction of the state's courts by, for example, doing business within the state, contracting to supply goods or services within the state, committing a tort (a civil wrong) within the state, or committing a tort outside the state if it produces harm within the state. permit.) Federal law, moreover, permits federal courts to rely on state long-arm statutes as a basis for obtaining in personam jurisdiction over nonresident defendants. Even if a long-arm statute applies, however, a state or federal court's assertion of in personam jurisdiction over a nonresident defendant must also meet due process standards.

• What is a precedent? When does a court adhere to precedent and when does a court distinguish precedent?

In cases governed by the common law, courts find the appropriate legal rules in prior cases called precedents. The standard for choosing and applying prior cases to decide present cases is the doctrine of stare decisis, which states that like cases should be decided alike. it means present cases should be decided in the same way as past cases presenting the same facts and legal issues. When an earlier case may seem similar enough to the present case to constitute a precedent but the court deciding the present case nevertheless identifies a meaningful difference between the cases, the court distinguishes the earlier decision.When a precedent has been properly distinguished, the common law rule it stated does not control the present case. The court deciding the present case may then fashion a new common law rule to govern the case.

executive orders

In theory, the president or a state's governor is a chief executive who enforces the laws but has no law-making powers. However, these officials sometimes have limited power to issue laws called execu- tive orders. This power normally results from a legisla- tive delegation.

Public and Private law - not sure, just in case

Public law concerns the powers of government and the relations between government and private parties. Examples include constitutional law, administrative law, and criminal law. Private law establishes a framework of legal rules that enables parties to set the rights and duties they owe each other. Examples include the rules of contract, property, and agency.

Specialized Federal Courts

The federal court system also includes certain specialized federal courts, including the Court of Federal Claims (which hears claims against the United States), the Court of International Trade (which is concerned with tariff, customs, import, and other trade matters), the Bankruptcy Courts (which operate as adjuncts of the district courts), and the Tax Court (which reviews certain IRS determinations). Usually, the decisions of these courts can be appealed to a federal court

• When do you file a motion to dismiss?

The procedural device for ending the case at this early stage is commonly called the motion to dismiss. This motion often is made after the plaintiff has filed her complaint. A similar motion allowed by some jurisdictions, the motion for judgment on the pleadings, normally occurs after the pleadings have been completed. A successful motion to dismiss means that the defendant wins the case. If the motion fails, the case proceeds. The most important type of motion to dismiss, however, is the motion to dismiss for failure to state a claim upon which relief can be granted, sometimes called the demurrer. This motion basically says "So what?" to the factual allegations in the complaint. It asserts that the plaintiff cannot recover even if all of his allegations are true because no rule of law entitles him to win on those facts.

• Why are means-ends tests developed by the Court? Why do courts use tougher tests of constitutionality in certain cases?

The sex discrimination test just stated is a means-ends test developed by the Supreme Court. Such tests are judicially created because no constitutional right is absolute and be- cause judges, therefore, must weigh individual rights against the social purposes served by laws that restrict those rights. In other words, means-ends tests determine how courts strike the balance between individual rights and the social needs that may justify their suppression. The "ends" component of a means-ends test specifies how significant a social pur- pose must be in order to justify the restriction of a right. The "means" component states how effectively the challenged law must promote that purpose in order to be constitutional. In the sex discrimination test, for example, the challenged law must serve an "important" government purpose (the signifi- cance of the end) and must be "substantially" related to the achievement of that purpose (the effectiveness of the means). 3 kinds of means-end 1. rational basis test 2. intermediate scrutiny 3. full strict scrutiny

• What are pleadings, provide examples?

pleadings are the documents the parties files with the court when they first stat their respective claims and defenses. They include the complaint, the answer, and, in some jurisdictions, the reply. Traditionally, the pleadings' main function was to define and limit the issues to be decided by the court.

• How has the Commerce Clause been interpreted to expand federal regulatory power?

the Commerce Clause serves as an independent check on state regulation that unduly restricts interstate commerce. Our present concern, however, is the Commerce Clause's role as a source of congressional regulatory power. The literal language of the Commerce Clause simply empowers Congress to regulate commerce that occurs among the states. Supreme Court decisions interpreting the Commerce Clause have held, however, that it sets up three categories of actions in which Congress may engage: first, regulating the channels of interstate commerce; second, regulating and protecting the instrumentalities of interstate commerce, as well as persons or things in inter- state commerce; and third, regulating activities that substantially affect interstate commerce.

• What are examples of administrative agencies? Why do they exist?

they are established by congress and because legislatures generally lacked the time and expertise to deal with this problems on a continuing basis. they obtain the ability to make law thru delegation (or grant) of power from the legislature. two types of laws made by administrative agencies are administrative regulations and agency decisions/