Upload
aileen
View
61
Download
2
Embed Size (px)
DESCRIPTION
Chapter 4 Constitutional Authority to Regulate Business . History. Before the Revolutionary War, States wanted a confederation with weak national government and very limited powers. - PowerPoint PPT Presentation
Citation preview
1© 2004 West Legal Studies in Business
A Division of Thomson Learning
Chapter 4Constitutional Authority
to Regulate Business
2© 2004 West Legal Studies in BusinessA Division of Thomson Learning
History
Before the Revolutionary War, States wanted a confederation with weak national government and very limited powers. After the war, in 1787, the States voted to amend Articles of Confederation and create a new, federal government that shared power with States.
3© 2004 West Legal Studies in BusinessA Division of Thomson Learning
§1: Constitutional Powers of Government
Constitution established a federal form of government with checks and balances among three branches: executive, legislative and judicial.
National government has limited, enumerated powers delegated from States.
Privileges and Immunities Clause (Art. IV §2)Full Faith and Credit Clause (Art. IV §1)
4© 2004 West Legal Studies in BusinessA Division of Thomson Learning
U.S. Commerce Clause
Power to regulate interstate commerce defined in Gibbons v. Ogden (1824).
Expansion to private businesses began with Wickard v. Fillburn (1942). Today, Commerce Clause it authorizes the national government to regulate virtually any business enterprise, including internet. Limits: U.S. v. Lopez (1995)
Case 4.1: Reno v. Condon (2000)
5© 2004 West Legal Studies in BusinessA Division of Thomson Learning
State Commerce
States possess inherent police powers to regulate health, safety, public order, morals and general welfare.
“Dormant” Commerce Clause. Case 4.2: Ferguson v. Friendfinders. Inc.
(2002)State laws that substantially interfere with
interstate commerce will be struck down.
6© 2004 West Legal Studies in BusinessA Division of Thomson Learning
U.S. Supremacy Clause
Article VI of the Constitution “Supreme Law of the Land.”
In case of direct conflict between state and federal law, state law is invalid.
Congress can preempt states.Federal Taxing and Spending Powers.
7© 2004 West Legal Studies in BusinessA Division of Thomson Learning
§2: Business and the Bill of Rights
Bill of Rights are not absolute. Originally the Bill of Rights was a limit on the
national government’s powers.During the early 1900’s, the Supreme Court
applied the Bill of Rights to the States via the “due process” clause of the 14th amendment.
8© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Free Speech
Afforded highest protection by courts.Symbolic Speech.
Texas v. Johnson (1989). R.A.V. vs. City of St.Paul (1992).
9© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Commercial Speech
Advertising is protected speech. Restrictions must: Implement substantial government interest; Directly advance that interest; and Go no further than necessary.
Case 4.3: Bad Frog Brewery (1998).
10© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Corporate Political Speech
Afforded significant protection by the first amendment but not to the degree of speech of natural persons. First National v. Bellotti (1978). Consolidated Edison v. Public Service Commission
(1980).
11© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Unprotected Speech
Certain types of speech are not protected by the first amendment: Slander. Obscenity (Miller v. California). Fighting Words.
Online Obscenity CDA, COPA, Children’s Internet Protection Act.
12© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Freedom of Religion
First amendment many neither prohibit the “establishment” nor prohibit the “free exercise” of religion.
The first amendment does not require complete “separation of church and state.”
First amendment mandates accommodation of all religions and forbids hostility toward any.
Zorach v. Clauson (1952) and Lynch v. Donnelly (1984).
13© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Freedom of Religion
First amendment guarantees the “free exercise” of religion.
Employers must reasonably accommodate beliefs as long as employee has sincerely held beliefs. Frazee v. Illinois (1989).
14© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Searches and Seizures
Fourth amendment requires warrant with “probable cause.”
Warrantless exceptions exist for “evanescent” evidence.
Searches of Business: generally business inspectors must have a warrant. Marshall v. Barlow’s (1978).
15© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Self-Incrimination
Fifth amendment guarantees no person can be compelled to testify against himself in a criminal proceeding.
Does not apply to corporations or partnerships.
16© 2004 West Legal Studies in BusinessA Division of Thomson Learning
§3: Due Process and Equal Protection
5th and 14th amendments provide “no person shall be deprived of life, liberty or property without due process of law.”
Procedural and Substantive issues.
17© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Procedural Due Process
Procedures depriving an individual of her rights must be fair and equitable.
Constitution requires adequate notice and a fair and impartial hearing before a disinterested magistrate.
18© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Substantive Due Process
Focuses on the content or substance of legislation.
Laws limiting fundamental rights (speech, privacy, religion) must have a “compelling state interest.”
Laws limiting non-fundamental rights require only a “rational basis.”
19© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Equal Protection
Strict Scrutiny.Laws that affect the fundamental rights of similarly situated individuals in a different manner are subject to the “strict scrutiny” test. Any “suspect class” (race, national origin) must serve a “compelling state interest” which includes remedying past discrimination.
20© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Equal Protection
Intermediate Scrutiny. Applied to laws involving gender or
legitimacy. To be constitutional laws must be substantially
related to important government objectives.• (EXAMPLE: Illegitimate teenage pregnancy).
21© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Equal Protection
Rational Basis Test. Applied to matters of economic or social
welfare. Laws will be constitutional if there is a rational
basis relating to legitimate government interest.
22© 2004 West Legal Studies in BusinessA Division of Thomson Learning
§4: Privacy Rights
Fundamental right not expressly found in the constitution, but derived from 1st, 5th and 14th amendments.
Laws and policies affecting privacy are subject to the compelling interest test.
23© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Law on the Web
Online Constitution Center See the “Vote-Smart” site on federalism.Federalist Society.com.ACLU.org.
Legal Research Exercises on the Web.