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Chapter 4 - Constitutional Authority to Regulate Business

Chapter 4 - Constitutional Authority to Regulate Business -...

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M W 9:30AM, Snell 213 John Exley, ID: 0160294 09.02.08 Chapter 4: Constitutional Authority to Regulate Business Pages 77-95 Federalism: A system that allocates the powers of sovereignty between the state and federal government. Section 1 – The Constitutional Powers of Government 1789: U.S. Constitution ratified by states. o A Federal Form of Government The Constitution sets forth specific powers that can be exercised by the national government and provides that the national government has the implied power to undertake actions necessary to carry out its expressly designated powers (or enumerated powers ). All other powers are expressly “reserved” to the states under the Tenth Amendment to the Constitution. Federal Form of Government: 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 Regulatory Powers of the States Police Powers: Powers possessed by states as part of their inherent sovereignty. These powers may be exercised to protect or promote the public order, health, safety, morals, and general welfare. Delineating State and National Powers o Relations among the States The Privileges and Immunities Clause This clause does not prohibit all discrimination. It applies only to discrimination for which the state cannot demonstrate a substantial reason significantly related to its objective. For example, giving hiring preferences to state or city residents has been found to violate the privileges and immunities clause. Privileges and Immunities Clause: Special rights and exceptions provided by law. Article IV, Section 2, of the 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, or property rights. The Full Faith and Credit Clause Full Faith and Credit Clause: A clause in Article IV, Section 1, of the Constitution that provides that “Full Faith and Credit shall be given in each State to the public Acts, Records, and Judicial Proceedings of every State.” The clause ensures that rights established under deeds, wills, contracts, and the like in one state will be honored by the other states and that any judicial decision with respect to such property rights will be honored and enforced in all states. 1 | P a g e
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o The Separation of the National Government’s Powers 1. The legislative branch (Congress) can enact a law, but the executive branch (the President) has the constitutional authority to veto that law. 2.
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