lecture notes ch. 4

lecture notes ch. 4 - Chapter 4 Title:BusLawSeal.eps...

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Chapter 4 Constitutional Authority to Regulate Business 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 Federal Form of Government The U.S. Constitution established a federal form of government, through which the states  and the national government share sovereign powers.
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B. T HE R EGULATORY P OWERS OF THE S TATES The states regulate affairs within their borders through their police powers, which derive in  part from the authority of the Tenth Amendment. These powers are exercised to protect  or promote the public order, health, safety, morals, and general welfare. 1.Delineating State and National Powers Generally, the courts determine the specific nature and scope of the respective powers of the states and the national government, and these change with time. C. 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. 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.
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D. The Separation of the National Government’s Powers Deriving power from the Constitution, each of the three governmental branches  performs a separate function.  No branch may exercise the authority of another,  but each has some power to limit the actions of the others.  Congress, for example,  determines the jurisdiction of the federal courts, but the United States Supreme  Court has the power to hold acts of the other branches of the federal government  unconstitutional. E. T HE C OMMERCE C LAUSE 1.The Expansion of National Powers under the Commerce Clause The   Constitution   expressly  provides   that   Congress   can   regulate   commerce   with  foreign   nations,   interstate   commerce,   and   commerce   that   affects   interstate  commerce. This provision—the commerce clause—has had a greater impact on  business than any other provision in the Constitution. At one time the clause was 
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lecture notes ch. 4 - Chapter 4 Title:BusLawSeal.eps...

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