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