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L S 3323notesforassignment3.s08

L S 3323notesforassignment3.s08 - Notes and Study Outline...

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Notes and Study Outline for Assignment 3 The Constitution and Business Introduction The constitution plays a major role in the legal environment of business. We have already examined one key example, personal jurisdiction. In this chapter, we well explore three other important examples: the commerce clause, the bill of rights and due process of law. Try to take a business perspective as you read about and discuss these issues. Remember that corporations are "persons" under the constitution. I. The Commerce Clause "Congress shall have the power to regulate Commerce with foreign Nations, and among the several states, and with the Indian Tribes; U. S. Const. Art. I, Sec. 8 [3]. What is "interstate commerce"? As the Constitutional provision above suggests, Congress (and generally the federal government) has the power to regulate interstate commerce. This provision does not grant Congress the exclusive regulatory power over interstate commerce; states, as you will see, may concurrently regulate interstate activities. However, defining "interstate commerce" is very important. How far can the federal government go in regulating this area? For example, does a federal minimum wage law extend all the way down to your small janitorial services business in Norman? Are you compelled to follow the Occupational Safety and Health Act? What about the Civil Rights Act of 1964? Does it extend to a small barbeque café in Montgomery, Alabama? Here's a synthesis definition of interstate commerce based on U.S. Supreme Court decisions. 1. Interstate commerce is interstate commerce!! i.e. when people, goods or services cross state lines for commercial reasons. 2. Interstate commerce is intrastate commerce that substantially affects interstate commerce (civil rights, Perez etc.) 3. Interstate commerce is intrastate commerce that, when viewed collectively, substantially affects interstate commerce. May States also Regulate Interstate Commerce? Concurrent regulation/States' Police Powers Under the 10th Amendment, all those powers not delegated to the Federal Government are retained by the states. The U.S. Supreme Court has labeled these retained powers Police Powers - the power to promote the health, welfare and safety of the people within that state. Key question: What are the constitutional constraints on State regulation (exercise of its police powers) over interstate commerce?
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