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Constitutional Clauses and Business Law


Articles I, II, III

sections of the Constitution of the United States that establish the branches of government and address which specific powers they have

commerce clause

clause giving Congress the power to regulate interstate commerce, foreign commerce, and commerce with Indian tribes; found in Article 1, Section 8 of the Constitution of the United States


legislative body of the United States, consisting of the Senate and the House of Representatives; created by Article 1 of the Constitution

Constitution of the United States

document drafted in 1788 by the Constitutional Convention and ratified by the 13 states in 1789; created the government and supreme laws of the United States

enumerated power

specific power of each branch of the government of the United States, granted by the Constitution of the United States

federal law

law passed under the enumerated powers given to the Congress of the United States and signed by the president

federal preemption

doctrine that if federal laws and state laws conflict, federal law takes precedence over state law


two-tiered form of government consisting of the national government and a number of state governments created by the Constitution of the United States

full faith and credit clause

Article 4, Section 1 of the Constitution of the United States, which provides that states must recognize the laws and court orders from other states

interstate commerce

purchase, sale, and transportation of goods, services, money, and people between states

intrastate commerce

purchase, sale, or transportation of goods, services, money, and people within a single state


ruling from a court that orders one person to pay another person a specific sum of money as compensation for some injury or damage caused by the person being ordered to pay


system in which the legal authority of a court of law holds power

political subdivision

smaller unit of government that receives its power from the federal government

res judicata

legal concept that says when an issue has been resolved by a court of proper jurisdiction, that issue cannot be relitigated by the same parties in a different court

reserved power

power of government that is not specifically given to the federal government and belongs to the states

restraint of trade

action or agreement that imposes restrictions on commerce that improperly interferes with the free conduct of business


written law passed by a legislative body

supremacy clause

rule that federal laws preempt, or take precedence over, laws of the various states; also known as Article 6, Clause 2 of the Constitution

United States Supreme Court

highest court in the United States and the "court of last resort" for any appeal in the judicial system; created by Article 3 of the Constitution