Biz Law - Ch. 4 Business and the Constitution

Federal form of government

when national and state share sovereign power

• states have authority to regulate certain affairs within their borders (ex police powers/enforcement of criminal laws)

Sovereign

power of state to govern itself

• individual state sovereignty is determined by the US constitution

Privileges and immunities clause

a different resident can’t be denied privileges and immunities of citizens of that state

Full faith and credit clause

only deals with civil matters; deed, wills, contracts, are honored in other states

Checks and balances

the power of the branches of government to check the action of the other branches

Supremacy clause

the US constitution is the law of the land

Commerce clause

gives Congress ability to regulate interstate commerce 

• Gibbons v Ogden

Gibbons v Ogden (1824)

NY gave Ogden license to operate

Gibbons had competing service with federal licenses in NY and NJ but Ogden sued

Gibbons won

Implications

• increased power of federal legislature to regulate interstate commerce

• states can’t regulate activities that extend beyond its borders

• commerce within a state can also be regulated by federal govt if the commerce substantially affects commerce in more than one state

Preemption

federal law trumps state law

Wickard v Filburn

• farmer filburn grew wheat for personal use but federal govt set limits on wheat production

• fliburn was fined but then sued for being fined bc congress shouldn’t have power to regulate personal farming that doesn’t involve interstate commerce 

• Filburn lost

Implication = even intrastate activities can fall under commerce clause

Symbolic speech

nonverbal expression of beliefs  (ie gestures, movements, articles of clothing) and given substantial protection under 1st amendment 

Establishment clause

prevents govt from establishing a state religion/ favoring one religion over another

Free exercise clause

prevents govt from interfering with people’s religions practices and forms of worship

Due process clause

under 5th and 14th amendments

• guarantee that no person will be deprived from life, liberty, and property without due process 

Equal protection clause

under 14th amendment - requires state govts to treat similar individuals in similar manner

• if the law limits liberty of some person but not others = may violate  equal protection clause

Content neutral laws

laws the regulate time, manner, and place but not content of speech

• ex: rita ora dancing naked

Content specific laws

must serve complete state interest and narrowly written 

• harder for govt to deal with content specific 

Citizens Untied v Federal Election Commission

political spending is a form of protected speech and govt can’t suppress political speech 

Is corporate political speech protected?

Yes, under the 1st amendment

• they can restrict their employees’ free speech

Commercial Speech

advertising and marketing

• Restrictions

  • implement substantial govt interest

  • advancement of that interest

  • goes no further than necessary to accomplish objective 

Unprotected speech

• harms reputation of another

• defamatory speech

• violates criminal law (threatening speech)

• obscene speech: hard to define

Procedural due process

everyone has proper notice and opportunity to be heard

• Ex. nursing student is expelled over a photo, she sues and wins because school violated her due process rights by expelling her without giving her opportunity to present her side to school authorities

Substantive due process

focuses on fairness of legislative content

Is privacy rights mentioned in Constitution?

No but it’s implied in many amendments. It’s protected under federal and state statutes