Ch 3 Business The Constitution Audio Clip of Speech by President John F Kennedy Created by Pamela S Evers Assoc Prof UNCW for Educational Purposes 2001 w updates Definition and Purpose Constitution a the structure of the government and its relation to the people under its authority or b when capitalized the written document establishing the structure and powers of government Constitutional law then is the body of law created by judicial interpretation of the Constitution System of Checks Balances The U S Constitution establishes a tripartite 3 part government structure legislative executive and judicial branches Purpose of system is to ensure separation of powers checks and balances so no one branch is omnipotent The Federal System In a federal system the central government has power to administer national concerns but states retain power to administer local concerns Power given by states to the national government are delegated powers some exclusive to the national government e g war some shared e g taxation State Police Power States possess exclusive power to enact laws to protect general welfare health and safety State police power is limited may not unreasonably interfere with federal powers Protest of 2000 IMF talks Washington DC Enumerated Federal Powers Give the Federal Government Power to Regulate commerce Art 1 Sec 8 Cl 1 Tax shared with states Art 1 Sec 8 Cl 1 Borrow shared with states Art 1 Sec 8 Cl 2 Mint currency exclusive to fed govt 1 8 5 6 Regulate banks banks created under state laws but regulated by federal government Enumerated Federal Powers Give the Federal Government Power to Spend to pay debts provide for common defense and general welfare of U S 1 8 Cl 1 Own Businesses rare but federal and state governments may own businesses and sell and distribute government production i e cityowned cable TV energy corporations or bond issuance to finance municipal activity Federal Preemption Art I Sec 8 lists issues on which Congress may pass statutes These are the enumerated powers Meaning if Congress enacts a law on a certain issue then Congress preempts state regulation of that issue For example a state cannot enact a law allowing discrimination based on race religion gender age or disability Federal Supremacy The Constitution and statutes enacted by Congress including treaties are the supreme law of the land U S Const Art VI Cl 2 Judicial Review In Marbury v Madison 1803 the Supreme Court interpreted the Constitution to grant federal courts the power of judicial review the power to declare a statute or governmental action unconstitutional and void Irony was that the statute in question gave the Supreme Court special powers The U S Supreme Court The Court hears 3 types of cases original jurisdiction e g state v state federal question cases from state court writs of certiorari petition for review of lower court decisions In the 2007 term there were 8 241 petitions for review 75 cases were argued and 72 were disposed of in 67 signed opinions Another 6 627 filings were in forma pauperis those unable to pay costs mostly from prison inmates Judicial Review In Youngstown Sheet Tube v Sawyer 1952 the Supreme Court used judicial review power to nullify an executive order What were the facts What was the issue What was the result Blast furnace 3 1952 Interpreting the Constitution Originalism Constitution is a bedrock and principles exist for all time Living Constitution Constitution written in flexible terms and intended to change with time Does the Constitution Affect Business Primary Applicable Clause Commerce Clause Congress has power to regulate commerce with foreign nations and among the several states and with the Indian tribes The federal power to regulate commerce limits states from interfering with interstate commerce Commerce Clause Cases The Supreme Ct expanded the power to regulate commerce with several decisions in the 1930s and 40s including NLRB v Jones Laughlin Steel the recognition of the right of employees to selforganization is often an essential condition of industrial peace And Wickard v Filburn Congress may regulate any activity that has a substantial economic effect on interstate commerce Dormant Commerce Clause The Supreme Ct has consistently held that a state statute that discriminates against interstate commerce violates the Commerce Clause Heart of Atlanta Motel case civil rights Fisheries and hazardous waste cases access to resources and products Camps Newfound case tax breaks Note Political Winds Can Shift Reflecting a strong states rights perspective the 1995 Supreme Court decision of United States v Lopez re Gun Free School Zones Act significantly expanded STATE power to regulate commerce US Supreme Court on day the Court announced their 2000 decision in the Florida election dispute Constitutional Limitations on Govt Due process 5th and 14th Amendments to the Constitution prohibit nat l and state govts from depriving any person of life liberty or property without due process of law interpreted liberally to be guarantee of protection from unreasonable procedures procedural due process and laws substantive due process interpreted to be guarantee of equal protection no protection if matter reasonably debatable Constitutional Limitations on Govt Due process cont depriving a person of property phrase known as the takings clause Palazzolo v Rhode Island controversial issue regarding environmental laws that arguably take land from the property owner interpreted to require just compensation in exchange for taking property through eminent domain Constitutional Limitations on Govt Equal Protection 14th Amendment applies protection to states modern interpretation of 5th Amend refers to national government Prohibits a government from treating one person differently from another without reasonable ground for classifying them differently What if US or State Congress Enacts a Law that Seems Discriminatory A test case challenges the law Courts apply 3 levels of scrutiny in review of an allegedly unconstitutional statute Clarence Darrow William Jennings Bryan during Scopes Trial Levels of Scrutiny Minimal economic and social regs if classification has rational basis it will stand Intermediate gender based classifications law must substantially relate to important govt l objectives to stand Strict race ethnicity religion classifications classification presumed invalid if on its face based on race ethnicity and religion Gonzales v Raich Facts Federal Controlled
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