BUSINESS AND
the
CONSTITUTION
CHAPTER 4
Federal Government:
A form of government where states form a union
and the sovereign power is divided between the
national government and the various states.
The Privileges and Immunities Clause:
a
state may not treat citizens of other states
differently from citizens of its own state without a
substantial reason that is substantially related to the
purpose of the rule.
The Full Faith and Credit Clause:
rights established under deeds, wills,
contracts, and the like in one state must be
recognized by other states
a judgment of a court of competent
jurisdiction in one state must be recognized
and enforced by the courts of another state
Commerce Clause:
Since 1824, the Supreme Court has interpreted the
Commerce Clause to permit Congress to regulate both
interstate commerce (i.e., commerce between
two or more states) and
intrastate commerce (i.e., commerce within a
single state),
as long as the intrastate commerce at issue
“substantially affects” interstate commerce.
Supremacy Clause
Article VI, Section 2 of the U.S. Constitution:
“the
Supreme Law of the Land”
Preemption:
preempt a conflicting state or local law,
regulation, or ordinance if
federal law is so pervasive, comprehensive,
or detailed that it leaves state and local law
no room to supplement it, or
federal law creates a federal regulatory
agency that is empowered to enforce federal
law.
Taxing Power:
Article
I, Section 8 empowers Congress to “lay
and collect Taxes”
Spending Power:
empowers
Congress “to pay the Debts and provide
for the common Defence and general welfare of
the United States.”
The Bill of Rights
with certain notable exceptions, protects legal
persons, such as corporations and sole
proprietorships, as well as natural persons.
First Amendment
The safeguards from most forms of government
regulation freedom of speech, including
corporate political speech.
Citizens United v. FEC (2010)
Freedom of Religion
The First Amendment also provides that
“Congress shall make no law respecting an
establishment of religion, or prohibiting the free
exercise thereof . . . .”
search warrant
issued by a judge or other public official, and
based on probable cause, before searching a
person’s property.
self-incrimination privilege
does
not extend to corporations or partner-ships,
but it does protect sole proprietorships and sole
practitioners to the same extent as natural persons
are protected
Procedural Due Process
requires that any government decision to take life,
liberty, or property must be made fairly, giving
the persons from whom life, liberty, or property is
to be taken prior notice and the opportunity to
be heard by an impartial decision-maker
Substantive Due Process
requires that the interest of the state to be served
by any law or other governmental action be
weighed against the right of the individuals
against whom the law or action is directed
Equal Protection
prohibit
any state or the federal government from
denying “any person within its jurisdiction the
equal protection of the laws.”
Privacy Rights
a fundamental right to personal privacy
Privacy Rights
Congress has passed a number of statutes
protecting individual privacy, including
Freedom of Information Act
Health
Insurance
Portability
Accountability Act (HIPAA),
Gramm-Leach-Bliley Act and Telephone
Records and Privacy Protection Act,
and
The USA Patriot Act
empowers government agencies to access and
monitor electronic, financial, and other personal
data and communication.
Other Laws Affecting Privacy
State constitutions and statutes also protect individuals’ privacy rights, often to a significant
degree. Privacy rights are also protected to some extent under tort law (see Chapter 6),
Internet law (see Chapter 9), and employment law. Additionally, the Federal Trade
Commission has played an active role in protecting the privacy rights of online consumers.
Reviewing: Business and the Constitution
A state legislature enacted a statute that required any motorcycle operator or
passenger on the state’s highways to wear a protective helmet. Jim Alderman, a
licensed motorcycle operator, sued the state to block enforcement of the law.
Alderman asserted that the statute violated the equal protection clause because it
placed requirements on motorcyclists that were not imposed on other motorists.
Using the information presented in the chapter, answer the following questions.
1. Why does this statute raise equal protection issues instead of substantive
due process concerns?
2. What are the three levels of scrutiny that the courts use in determining
whether a law violates the equal protection clause?
3. Which standard of scrutiny, or test, would apply to this situation? Why?
4. Applying this standard, or test, is the helmet statute constitutional? Why
or why not?
DEBATE THIS… Legislation aimed at “protecting people from themselves” concerns
the individual as well as the public in general. Protective helmet laws are just one
example of such legislation. Should individuals be allowed to engage in unsafe
activities if they choose to do so?