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Chapter4Edition14.docx - Chapter 4 Business and the...

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Chapter 4 Business and the Constitution C HAPTER O UTLINE I. The Constitutional Powers of Government Before 1789, the Articles of Confederation defined the central federal government, which was perceived as too weak when state laws interfered with commerce. A national convention was called to amend the Articles, but instead the delegates drafted the U.S. Constitution. A. A F EDERAL F ORM OF G OVERNMENT - A SYSTEM OF GOVERNMENT IN WHICH THE STATES FORM A UNION AND THE SOVEREIGN POWER IS DIVIDED BETWEEN A CENTRAL GOVERNMENT AND THE MEMBER STATES The U.S. Constitution established a federal form of government, through which the states and the national government share sovereign powers. 1. Federal Powers The national government has specific powers and the implied power to act to carry out these enumerated powers. All other powers are reserved to the states under the Tenth Amendment. 2. Regulatory Powers of the States The states regulate affairs within their borders through their police powers, which derive in part from the Tenth Amendment. These powers are exercised to protect or promote the public order, health, safety, morals, and general welfare. Sovereignty-power to govern themselves Police powers-states regulatory powers B. R ELATIONS AMONG THE S TATES 1. The Privileges and Immunities Clause Under the Constitution’s Article IV privileges and immunities clause, when a citizen of one state engages in basic and essential activities in another state, the foreign state must have a substantial reason for treating nonresidents differently than its own residents and the reason must be substantially related to its ultimate purpose in adopting legislation or an activity. privileges and immunities clause-Article IV, Section 2, of the U.S. Constitution requires states not to discriminate against one another’s citizens. A resident of one state cannot be treated as an alien when in another state; he or she may not be denied such privileges and immunities as legal protection, access to courts, travel rights, and property rights. 2. The Full Faith and Credit Clause The Constitution’s full faith and credit clause ensures that rights established under deeds, wills, contracts, and so on in one state will be honored by other states. It also ensures that judicial decisions with respect to such property rights are honored and enforced in all states. -only civil matters C. T HE S EPARATION OF P OWERS Deriving power from the Constitution, each of the governmental branches (the executive, the legislative, and the judicial) performs a separate function. No branch may exercise the authority of another, but each has some power to limit the actions of the others. This is the system of checks and balances . Congress, for example, can enact a law, but the president can veto it.
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