Download
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
Foundations of American Law PowerPoint Presentation
Download Presentation
Foundations of American Law

Foundations of American Law

110 Views Download Presentation
Download Presentation

Foundations of American Law

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. 1 Foundations of American Law The Nature of Law The Resolution of Private Disputes Business and The Constitution Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

  2. Business & The Constitution 3 C H E A P T R "The very idea of the power and the right of the People to establish government presupposes the duty of every Individual to obey the established Government." -- George Washington (Farewell Address, September 19, 1796)

  3. Learning Objectives • Basics of the Constitution and federalism • Relationship between federal and state powers • Important legal principles: supremacy, preemption • Constitutional guarantees and limitations 3 - 4

  4. Overview of the Constitution • Establishes a tripartite government to ensure a separation of powers • A system of checks and balances exists in which no one branch may control another 3 - 5

  5. The Power to Regulate • Federal government has exclusive power to administer certain national concerns, such as war and currency • Some powers are shared with the states • States possess exclusive power to enact laws to protect general welfare, health, and safety 3 - 6

  6. Supremacy & Preemption • The Constitution and statutes enacted by Congress, including treaties, are the supreme law of the land • Congress may enact laws on certain issues and preempt state regulation of that issue 3 - 7

  7. Testing Constitutionality • Courts apply a means-ends test to review allegedly unconstitutional statute • Rational basis test (minimal scrutiny) • if law has rational basis, it will stand • Intermediate scrutiny • law must substantially relate to important governmental objectives to stand • Strict scrutiny • Law presumed invalid if, on its face, it is based on race, ethnicity, and religion 3 - 8

  8. The Commerce Power • Commerce clause (Article I, Section 8, Clause 3) applies to interstate commerce • Supreme Court has applied the power to intrastate commerce when the activity affects interstate commerce • See Gonzales v. Raich 3 - 9

  9. The First Amendment • First Amendment guarantees freedoms of religion, speech, press, assembly, and petition to individuals (and corporations) • Restriction on commercial speech is valid if it (1) seeks to implement a substantial government interest, (2) directly advances interest, and (3) is least restrictive method of achieving interest (see Kasky v. Nike) 3 - 10

  10. Constitutional Limitations • Fifth Amendmentprohibits federal government from depriving “any person of life, liberty, or property without due process of law” (due process clause) • Protection from unreasonable procedures or unreasonable laws • Applied to states through Fourteenth Amendment 3 - 11

  11. Constitutional Limitations • Equal protection clause of Fourteenth Amendmentprohibits a government from treating one person differently than another without reasonable grounds for differential • Basic test: rational basis (minimal) • “Suspect” classifications (race, gender, ethnicity) require higher level of scrutiny 3 - 12

  12. Constitutional Limitations • Phrase “depriving a person … of property” known as the takings clause • Requires government to pay compensation to property owner for taking property for public purpose through eminent domain 3 - 13

  13. Test Your Knowledge • True=A, False = B • The Constitution establishes a tripartite government • The federal government has exclusive power over matters of war and taxation • States possess exclusive power to enact laws to protect welfare, health, and safety • The Fifth Amendment prohibits depriving any person of life, liberty or happiness • Federal supremacy means that the U.S. Constitution is the supreme law of the land 3 - 14

  14. Test Your Knowledge • True=A, False = B • The Federal government may not interfere with interstate commerce • The federal government may not restrict individual or commercial speech • Constitutional limitations on governmental power includes the Fifth Amendment • The “takings clause” means that the federal government cannot take away an individual’s freedom 3 - 15

  15. Test Your Knowledge • Multiple Choice • Courts apply a means-ends test to review an allegedly unconstitutional statute. Which level of scrutiny applies to a statute that gives benefits to people based on their religion? • (a) Minimal scrutiny • (b) Intermediate scrutiny • (c) Strict scrutiny 3 - 16

  16. Test Your Knowledge • Multiple Choice • Substantive due process refers to a prohibition against: • (a) Unreasonable procedures • (b) Unreasonable laws • (c) Unreasonable (unfair) results • (d) Both A & B • (e) All of the above 3 - 17

  17. Thought Question • What constitutional issues are important to you? 3 - 18