Business Law Assign 1

Your assignment is to answer the following questions regarding information learned in Chapter 4. As a guideline, your answer to each question should be between 50-150 (approximately). Answer the questions in your own words, using complete sentences, and paying attention to spelling, punctuation, and grammar. Submit your answers as a Word document.

1.   Explain the purpose of the Equal Protection Clause and describe and explain the different levels of judicial scrutiny given to government classifications based on race, gender and age. Be specific and give examples.

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2.  Distinguish between limited protected speech and unprotected speech as categorized by the U.S. Supreme Court. Be specific.

3.  How is the federal government divided? Why are checks and balances necessary? Explain with specific examples.

4.   How is power divided between the federal government and the state governments? Be specific and give examples.

5.  Why is it unconstitutional for a state government to ban products imported from a foreign country, despite that country engaging in activities not condoned by that state?

business lawShort answer

Business Law

Tenth Edition

Chapter 4

Constitutional Law for Business and E-Commerce

Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved.

Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved.
Learning Objectives (1 of 3)
4.1 Describe the U.S. Constitution and the concepts of federalism and separation of powers.
4.2 Define and apply the Supremacy Clause of the U.S. Constitution.
4.3 Explain the Commerce Clause and the federal government’s authority to regulate interstate and foreign commerce.
4.4 Describe how the Commerce Clause is applied to e-commerce.

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Learning Objectives (2 of 3)
4.5 Describe the Bill of Rights and the process for amending the U.S. Constitution.
4.6 Explain how freedom of speech is protected by the First Amendment.
4.7 Explain how freedom of religion is protected and how the government may not promote religion.
4.8 Explain the equal protection doctrine and how it protects persons from unequal treatment by the government.

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Learning Objectives (3 of 3)
4.9 Describe the Due Process Clause and substantive and procedural due process.
4.10 Explain how the government can take private property but must pay just compensation for the taking.
4.11 Explain how the privileges and immunities doctrine protects citizens from unfavorable treatment by the government.

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Constitution of the United States of America (1 of 3)
Federalism and delegated powers
The U.S. form of government is federalism
Federal government and fifty state governments share powers
Enumerated powers: Certain powers delegated to the federal government by the states
Reserved powers: Powers not delegated to the federal government by the Constitution and reserved for the state governments

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Constitution of the United States of America (2 of 3)
Doctrine of Separation of Powers
Article I – Legislative branch
Part of the government that makes federal laws
Congress – Senate and the House of Representatives
Article II – Executive branch
Part of the U.S. government that enforces the federal law
President and the vice president

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Constitution of the United States of America (3 of 3)
Doctrine of Separation of Powers (cont.)
Article III – Judicial branch
Part of the U.S. government that interprets the law
Supreme court and other federal courts
Checks and balances
Built into the Constitution to ensure no one branch of the federal government becomes too powerful

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Supremacy Clause
Establishes that the U.S. Constitution, federal treaties, laws, and regulations are the supreme law of the land
State and local laws that conflict with valid federal law are unconstitutional
Preemption doctrine: Doctrine that provides that federal law takes precedence over state or local law
Congress may expressly provide that a federal statute exclusively regulates an area or activity
Or local governments are given concurrent powers

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Case 4.1: Supremacy Clause
Case
Mutual Pharmaceutical Company, Inc. v. Bartlett
133 S.Ct. 2466 (2013)
Supreme Court of the United States
Issue
Does the federal drug labeling law preempt a stricter state drug labeling law?

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Commerce Clause
Grants Congress the power to regulate commerce with foreign nations, among the several states, and with Indian tribes
Federal government has the power to regulate three types of commerce
Commerce with Native American tribes
Foreign commerce
Interstate commerce

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Commerce with Native American Tribes
During the formative years of the United States, federal government regulated commerce with Native American tribes
Federal government entered into treaties with many Native American nations
Native Americans are treated as domestic dependent nations with limited sovereignty

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Foreign and Interstate Commerce
Foreign Commerce Clause: Commerce clause grants the federal government the authority to regulate foreign commerce
Direct and indirect regulation by state or local governments that burdens foreign commerce violates the clause and is therefore unconstitutional
Interstate commerce: Commerce that moves between states or that affects commerce between states

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Dormant Commerce Clause (1 of 2)
Situation in which the federal government has the Commerce Clause power to regulate an area of commerce but has chosen not to regulate that area of commerce
State can enact laws to regulate that area of commerce with its police power
Police power: Power that permits states and local governments to enact laws to protect or promote the public health, safety, morals, and welfare

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Dormant Commerce Clause (2 of 2)
Regulation by state should not unduly burden interstate commerce
Unduly burden interstate commerce: States may enact laws as long as the laws do not burden interstate commerce

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E-Commerce and the Constitution
Electronic commerce (e-commerce)
Parties are permitted to obtain website domain names and conduct business electronically
E-commerce can be used for:
Sales of goods
Licensing of intellectual property
Sales of services

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Bill of Rights and other Amendments
to the U.S. Constitution
Bill of Rights
First ten amendments to the U.S. Constitution
Guarantees certain fundamental rights to natural persons
Protects from intrusive government action by:
Federal government
State governments (Incorporation doctrine)

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Freedom of Speech (1 of 2)
The right to engage in oral, written, and symbolic speech protected by the First Amendment
Fully protected speech
Limited protected speech
Unprotected speech
Fully protected speech
Cannot be regulated or prohibited by government
Can be oral, written, or symbolic
Example – Criticizing the President, burning the U.S. flag as protest

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Case 4.2: Free Speech Rights and the Internet
Case
Packingham v. North Carolina
2017 U.S. Lexis 3871 (2017)
Supreme Court of the United States
Issue
Does the North Carolina statute that prohibits registered sex offenders from using social media websites violate the First Amendment?

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Freedom of Speech (2 of 2)
Limited protected speech: Speech that the government may not prohibit but that is subject to time, place, and manner restrictions
Offensive speech: Speech that is offensive to many members of society
Commercial speech: Speech used by businesses, such as advertising
Unprotected speech: Speech not protected by the First Amendment and may be forbidden totally
Ex. Dangerous speech, child pornography, etc.

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Freedom of Religion
Establishment Clause: First Amendment clause prohibiting the government from either establishing a state religion or promoting one religion over another
Free Exercise Clause: First Amendment clause that prohibits the government from interfering with the free exercise of religion in the United States

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Equal Protection
Equal protection clause: A clause that provides that a state cannot deny to any person within its jurisdiction the equal protection of the laws
Laws cannot classify and treat similarly situated persons differently
Artificial persons, such as corporations, are also protected
Does not make the classification of individuals unlawful

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Standards of Review (1 of 2)
Strict scrutiny test: Test that is applied to determine constitutionality of classifications by the government based on:
Suspect class (e.g., race)
Fundamental rights (e.g., voting)
Intermediate scrutiny test: Applied to classifications based on protected classes (e.g., gender)

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Standards of Review (2 of 2)
Rational basis test: Applied to classifications not involving a suspect or protected class (e.g., age)
Court will uphold government regulation so long as there is a justifiable reason for it
Permits much of the government regulation of business

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Case 4.3: Due Process and Equal Protection Clauses
Case
Obergefell v. Hodges
135 S.Ct. 2584 (2015)
Supreme Court of the United States
Issue
Do the challenged state laws that do not permit or recognize same-sex marriage violate the Due Process Clause and Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution?

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Due Process (1 of 2)
Due process clause: No person shall be deprived of life, liberty, or property without due process of the law
Fifth Amendment – Federal government action
Fourteenth Amendment: State and local government action
The government is not prohibited from taking a person’s life, liberty, or property
Must follow due process in order to do so

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Due Process (2 of 2)
Substantive due process
Requires government statutes, ordinances, regulations, or other laws to be clear on their face and not overly broad in scope
Tested using a reasonable person’s understanding of the law
Laws failing the test are declared void for vagueness
Procedural due process
Requires the government to give a person proper notice and hearing of legal action before depriving that person of life, liberty, or property

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Government Taking of Property
Takings clause
A clause that allows the government to take property for public use.
Requires:
Public use
Just compensation

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Case 4.4: Takings Clause and Just Compensation
Horne v. Department of Agriculture
135 S.Ct. 2419
Supreme Court of the United States
Issue:
Does the government’s action constitute a taking of personal property under the Takings Clause of the Fifth Amendment that requires the payment of just compensation?

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Privileges and Immunities
Privileges and Immunities Clause
“The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several states”
No state shall make or enforce any law that shall abridge the privileges or immunities of the citizens of the United States
The clauses prohibit states from enacting laws that unduly discriminate in favor of their residents
The clauses apply only to citizens and do not protect corporations or aliens

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