Chapter%205 - Chapter 5: Application of Constitutional Law...

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Chapter 5: Application of Constitutional Law to Business David Baumer Spring 2003
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Origins of Constitution The original constitution was the Articles of Confederation , which proved to be unworkable The Colonists were afraid of a strong central govt. but erred on the side of a federal govt. that was too weak to rule effectively One significant change that occurred when the Constitution was adopted was allocation of responsibility for regulating interstate commerce to the federal govt.
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Constitution When the Constitution was adopted several safeguards were in place to prevent excessive concentration of powers Powers were separated between the three branches of govt. legislative--makes laws (statutes) executive--enforces laws judicial--interprets and applies laws Judges can declare laws unconstitutional
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Limits on Concentration of Power at the Federal Level Federalism Although the U.S. Constitution is the supreme law of the land, it reserves to the states all powers not delegated to the federal govt. Ninth and Tenth Amendments Necessary and Proper Clause allows fed. govt. to enact laws necessary to carry out the powers delegated to it Bill of Rights --citizens have certain inalienable rights--freedom of speech etc. Another major limitation on power of fed. govt.
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Commerce Clause U.S. Constitution gives fed. govt. power to regulate interstate commerce Commerce clause is A power source for the fed. govt. A limitation on state govt. The fed. govt. has always had the power to regulate things that were moving interstate commerce During the Roosevelt era, the Supreme Court held that the fed. govt. can regulate anything that affects interstate commerce Almost everything affects interstate commerce according to the Supreme Court
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The Commerce Clause limits laws and actions of the state govts. if, the law discriminates against ISC (interstate commerce) unduly burdens ISC taxes are not apportioned to activities of businesses within a state Preemption takes place when the courts or Congress decides that all state laws in an area are in conflict with federal law In general states can regulate in areas that the fed. govt. regulates unless it is decided that state law is preempted
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This note was uploaded on 09/26/2011 for the course BUSINESS 411 taught by Professor Staff during the Spring '11 term at Youngstown State University.

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Chapter%205 - Chapter 5: Application of Constitutional Law...

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