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Constitution Law And Business
I. Introduction To Constitution Law And Business
The Constitution.
The Constitution is intentionally flexible.
Seven articles and 27 amendments.
The first three articles.
They guarantee individual liberties and articulate fundamental rights that are substantially immune from government action.
The first ten amendments.
(1). The purposes are to create a system of checks and balances to prevent the excessive accumulation of power in any one branch, and (2). it enables each branch to exercise its constitutional responsibilities without undue influence by the other branches.
As power may be exercised concurrently, between states and the federal government.
The Commerce Clause.
Federalism.
It becomes invalid either of the following is clearly true:
- Congress has no rational basis for finding that the regulated activity affects interstate commerce. This is called the rational basis test.
- A reasonable connection between the regulatory means selected and the asserted ends do not exist.
The Commerce Clause can invalidate state laws that give local businesses an unfair advantage over interstate businesses.
- If a state statute is nondiscriminatory, a balancing test is used to determine whether the burden on interstate commerce is unreasonable in light of the strength of the state interest.
- If a state statute discriminates against interstate commerce, it is invalid unless Congress consent to it, regardless of whether the burden would otherwise be permitted.
- The Commerce Clause does not prevent a state from purchasing solely from its own citizens or from granting subsidies only to its own residents.
The power vested exclusively in the foreign government extends to all aspects of foreign trade.
The taxing powers were granted by the Sixteen Amendment of the Constitution.
- Direct taxes other than income taxes must be allocated among the states in proportion to population.
- Goods exported from the states must not be taxed.
- All duties, imports, or exercises must be uniform nationwide.
Congress has the authority to pay the debts and provide for the common defense and general welfare of the United States.
The power to borrow money on the credit of the U.S. and to coin money and regulate its value.
Note: Congress has used these powers to create the Federal Reserve System and other agencies.
Eminent domain.
The federal government may not take private property for public use without just compensation.
The fair market value of the property at the time of the taking.
Due Process Clauses of the Fourteen Amendment.
An actual taking of the private property must have occurred.
Note: A taking need not be physical.
States may regulate business as long as Congress has not occupied the field and Congress has not preempted state regulation of activity.
Any subject matter over which the federal government has exclusive power.
Examples: coining money, declaring war, or in a manner that will place an undue burden on interstate commerce.
The police power.
To prevent retroactive modification of private contracts and public charters.
Note: The Contract Clause is not intended to prohibit states from a valid exercise of police power.
- Does the state tax apply to an activity with a substantial connection with the taxing state?
- Is the state tax fairly apportioned?
- Is the state tax nondiscriminatory against interstate commerce?
- Is the state tax fairly related to service or benefits provided by the state?
Because it may be deemed unconstitutional under the Due Process Clause or the Equal Protection Clause.
The Constitution.
The Thirteen Amendment, which abolished slavery and involuntary servitude.
The Fifth Amendment.
The Fourteen Amendment.
- Procedural due process, such as reasonable notice, a hearing, and the right to counsel.
- Substantive due process, a court’s inquiry into the wisdom and utility of state action.
The Equal Protection Clause of the Fourteen Amendment.
The Due Process Clause of the Fifth Amendment.
Strict scrutiny, intermediate scrutiny test, and rational relationship test.
It is applied when legislation affects fundamental rights (voting, privacy, travel, free speech, and freedom of religion).
It is also applied when the classification of persons is inherently suspect (race, religion, or national origin).
Intermediate scrutiny test.
The rational relationship test.
An ex-post-facto law retroactively alters criminal law with respect to offenses or punishments in a substantially prejudicial manner.
A bill of attainder.
The first eight amendments of the Bill of Rights.
The Ninth Amendment.
The Tenth Amendment.
The Due Process Clause of the Fourteen Amendment.
The Fifth Amendment.
The Fifth Amendment.
The Fourth Amendment.
A right to privacy.
The Privacy Act of 1974.
The Right to Financial Privacy Act of 1978
The Freedom of Information Act of 1966.
- The speech must address lawful activity and not be misleading to come within the First Amendment.
- The government interest must be substantial to permit regulation.
- If both of the foregoing are true, the court must determine whether the governmental regulation directly advances the government interest.
- The court must decide whether the regulation is narrowly tailored to advance the government interest. Thus, it should not be more extensive than necessary.