Chapter 4 BLAW Flashcards

What is the impact of the U.S. Constitution on business operations?

The Constitution sets the framework for business regulation by defining the powers and limits of federal and state governments, ensuring legal consistency, and balancing authority through federalism.

What is constitutional law?

Constitutional law describes the powers and limitations of the federal and state governments, based on the U.S. Constitution.

What is federalism?

Federalism is the division of power between the federal and state governments.

What does the Tenth Amendment state?

Powers not delegated to the federal government are reserved for the states.

What must federal legislation that impacts business be based on?

A constitutional grant of authority.

What is federal preemption?

Under the Supremacy Clause (Article VI), federal law overrides conflicting state law.

What does it mean if a law is "preempted"?

Federal constitutional law takes precedence over conflicting state law.

What are examples of exclusive federal powers?

Coining money, declaring war, creating a military, establishing post offices.

What was the purpose of the ACA?

To increase access to health insurance for Americans.

What was the individual mandate under the ACA?

Required individuals not covered by employer or exempted to obtain health insurance or face a penalty.

Who challenged the individual mandate and why?

The National Federation of Independent Business (NFIB) argued it exceeded Congress's authority.

What did the appellate court rule on the mandate?

The mandate was unconstitutional but severable from the rest of the ACA.

What does the Commerce Clause grant Congress power over?

Commerce with foreign nations, among the states, and with Indian tribes.

How has the Commerce Clause been interpreted over time?

Early interpretations were narrow, applying only to trade between states. Post-1937, broader interpretations allowed regulation of activities substantially affecting interstate commerce.

What case marked a shift in Commerce Clause interpretation?

NLRB v. Jones & Laughlin Steel Corp (1937).

What did the Court rule in NLRB v. Jones?

Congress could regulate intrastate activities with a substantial effect on interstate commerce.

How many U.S. Code provisions refer to interstate commerce?

Over 700.

Provide examples of federal laws based on the Commerce Clause.

Controlled Substances Act, Federal Mine Safety and Health Act, Civil Rights Act, ADA, Indian Child Welfare Act.

What was the ruling in U.S. v. Lopez (1995)?

The Gun-Free School Zones Act was unconstitutional—had no relation to commerce.

How did the ACA test the limits of the Commerce Clause?

The mandate could not be upheld under commerce powers because it compelled activity, not regulated existing commerce.

What is police power?

The state's authority to protect health, safety, and welfare.

What are examples of police power in action?

Zoning laws, building codes, sanitation standards.

What is the dormant commerce clause?

A principle restricting states from laws that unfairly burden or discriminate against interstate commerce.

Example of dormant commerce clause case?

A Chicago spray paint ban upheld to reduce graffiti.

What are the four areas under the Commerce Clause that Congress can regulate?

1. Channels - Roads, airways, waterways
2. Instrumentalities - Equipment, vehicles, people in commerce
3. Tangibles/Intangibles - Goods, materials, and data crossing states
4. Economic Activity with Substantial Impact - Activities significantly affecting commerce.

What is the Bill of Rights?

The first 10 Amendments providing protection from government interference.

What does the Fourteenth Amendment do?

Applies the Bill of Rights to state governments.

Do businesses and corporations have constitutional protections?

Yes.

What is corporate political speech?

Speech by corporations supporting political agendas; protected since First Nat’l Bank v. Bellotti (1978).

What types of speech are not protected?

Threats, incitement, slander (Chaplinsky v. New Hampshire, 1942).

What is commercial speech?

Speech related to the sale of goods or services.

What is the Central Hudson Test?

A 4-part test for regulating commercial speech that assesses lawfulness, government interest, advancement of that interest, and necessity.

What is the Free Exercise Clause?

Prohibits laws restricting the free exercise of religion, often invoked in employment cases.

What does the Fourth Amendment protect?

Requires warrants for searches/seizures, based on probable cause.

What is the pervasive-regulation exception?

Agencies in heavily regulated industries can conduct warrantless searches (e.g., stone quarries).

What is substantive due process?

Laws must be fair, reasonable, and meet the rational-basis test.

What is procedural due process?

Requires fair procedures (e.g., hearings before termination).

What is the Takings Clause?

Government must provide just compensation for taking property.

Does self-incrimination apply to businesses?

No, only to individuals—not corporate officers or custodians.

What are some other constitutional amendments relevant to business and law?

Second (Right to bear arms), Third (No quartering of soldiers), Sixth (Speedy public trial, right to attorney), Seventh (Jury in civil cases over $20), Eighth (No cruel/unusual punishment), Ninth (People retain other rights), Tenth (Powers reserved for states).