ch04

West's Business Law with Online Research Guide, 9th Edition

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Unformatted text preview: FEDERALISM Federal Government: A form of government where states form a union and the sovereign power is divided between the national government and the various states. The Privileges and Immunities Clause: Article IV of the U.S. Constitution provides that “Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States.” In other words, a state may not treat citizens of other states differently from citizens of its own state without a substantial reason that is substantially related to the purpose of the rule. The Full Faith and Credit Clause: Article IV also requires the states to afford “Full Faith and Credit . . . to the public Acts, Records, and judicial Proceedings of every other State.” As a consequence, rights established under deeds, wills, contracts, and the like in one state must be recognized by other states. Ch. 4: Constitutional Authority to Regulate Business - No. 1 West’s Business Law (9th ed.) Likewise, a judgment of a court of competent jurisdiction in one state must be recognized and enforced by the courts of another state. Ch. 4: Constitutional Authority to Regulate Business - No. 2 West’s Business Law (9th ed.) CHECKS AND BALANCES Tri-Partite Government: The national government of the United States of America is composed of three separate branches, each of which acts as a check on the others’ power: The Executive Branch ( i.e. , the President), which has the power to veto legislation passed by Congress and to appoint the members of the Judiciary; The Legislative Branch ( i.e. , Congress), which may override the President’s veto and which may define the jurisdiction of the Judiciary and must confirm Judiciary appointees; and The Judicial Branch ( i.e. , the Supreme Court and the federal court system), which has the power to void the acts of the Executive and Legislative branches because they are unconstitutional. Ch. 4: Constitutional Authority to Regulate Business - No. 3 West’s Business Law (9th ed.) THE COMMERCE CLAUSE Commerce Clause: Article I, Section 8 of the U.S. Constitution empowers Congress “[t]o regulate Commerce with foreign nations, and among the several States, and with the Indian Tribes.” Interstate and Intrastate Commerce: Since 1824, the Supreme Court has interpreted the Commerce Clause to permit Congress to regulate both Interstate Commerce ( i.e. , commerce between two or more states) and Intrastate Commerce ( i.e. , commerce within a single state), as long as the intrastate commerce at issue “substantially affects” interstate commerce. Ch. 4: Constitutional Authority to Regulate Business - No. 4 West’s Business Law (9th ed.) THE REGULATORY POWERS OF THE STATES Police Powers: As part of their sovereign powers, states possess the power to regulate private activities in order to protect or promote public order, health, safety, morals, and general welfare....
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ch04 - FEDERALISM Federal Government A form of government...

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