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Unformatted text preview: LEGL 2700 Chapter 6 02/15/09 The Constitution and Business Seven articles to the original Constitution; the first three establish the legislative, executive, and judicial branches Contract Clause- Article I, “No State shall…pass any…Law impairing the Obligation of contracts.” Prohibits states from enacting laws that interfere with existing contracts (Does not apply to federal government). Regulates state and local government; it does not restrict the federal’s power to impact contractual relationships Commerce Clause- Article I, The power of the federal government to regulate business activity (Has four important areas involving the government regulating business) 1. Regulation of foreign commerce 2. Regulation of interstate commerce- Includes not only people engaged in interstate commerce but also activities affecting interstate commerce. Also extends to those intrastate activities that affect interstate commerce as to make regulation of them appropriate 3. Limitation on state police powers- Requiring state legislation and regulation to protect the public’s health, safety, morals, and general welfare (therefore gives state government expansive power to regulate business activities). However there are limitations imposed by the Constitution that the state regulation must not violate the commerce clause ( Dormant commerce clause concept ) three subject areas of government regulation of commerce... 1. Exclusively Federal- Concerns those internal matters where uniformity on a nationwide basis is essential (opening and closing of airports) 2. Exclusively State- Those matters that are exclusively within the states’ power are intrastate activities that do not have a substantial effect on interstate commerce ( EXAMPLE?!? ) 3. Dual Regulation- Divided into three subparts… 1. Federal Preemption- When a federal statute preempts a particular area of regulation, any state or local law pertaining to the same subject matter is unconstitutional under the commerce clause and the supremacy clause, and the state regulation is void 2. No Preemption- Includes situations in which the federal regulation of a subject matter is not comprehensive enough to preempt the field (here state regulation is permitted) Irreconcilable conflicts- exist when it is not possible for a business to comply with both state and federal statutes....
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- Fall '07
- Interstate Commerce, commerce clause- article