Post on 14-Mar-2020
Section 1:Constitutional Authority
to Regulate Business
We need to understand the interaction between business and the Constitution
The Constitution not only governs business but protects it
We need to learn the impact of the Constitution on business
Knowing the Constitution helps businesses to know their rights
Today we examine the Constitution, the Bill of Rights, and their application to business
The Constitution permits Congress
to regulate business
The weakness of the Articles of Confederation hampered business
The central government had very limited powers
State laws hindered the free flow of goods across state lines
A compromise: the states and federal government would share powers
The Constitution governs relations between the states
• The Privileges and Immunities Clause
• The Full Faith and Credit Clause
The commerce clause gives Congress the power to regulate interstate commerce
Article I, Section 8, Clause 3:
“The Congress shall have power . . . To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;”
The constitution gives Congress authority over commerce between the states
The commerce clause expanded the powers of the national government
The commerce clause limits the power of the states
The Supreme Court has limited the commerce clause slightly
The Constitution and federal laws are the highest law in the land
The supremacy clause makes federal law control when state laws conflict
Preemption occurs when Congress speaks on an issue
Congress has the power to tax and spend
The Bill of Rights affects businesses
as well as individuals
The Bill of Rights limits government powers
The Bill of Rights originally protected individuals from the federal government
The Fourteenth Amendment provided the same protections from state government
The rights secured by the Bill of Rights are not absolute
The Bill of Rights protects corporate speech
The First Amendment protects symbolic speech
The First Amendment protects political speech by corporations
The First Amendment protects commercial speech (sort of)
The Bill of Rights protects other business interests
The Freedom of Religion clause may affect business
Sunday closing laws do not violate the establishment clause
The free exercise clause requires employers to make reasonable
accommodations
The Fourth Amendment protects businesses against unreasonable searches
Businesses have no right against self-incrimination under the Fifth Amendment
Other Constitutional
guarantees apply to businesses
The Due Process clause protects businesses
"Procedural due process" requires the government to follow the rules
"Substantive due process" requires the government to have a good reason for
what it does
The Equal Protection clause protects businesses
The government must treat similar individuals in a similar manner
A law prohibiting a fundamental right will be subject to strict scrutiny
Other laws are subject to intermediate scrutiny
Businesses also have a right to privacy
Federal law protects privacy (sometimes)
The PATRIOT Act gives the government opportunity to spy on US citizens
States often expressly protect privacy rights
Conclusion