Business and the Constitution Chapter 5 I The Constitutional Powers of Government a A Federal Form of Government states regulate affairs within their borders through their police powers which derive in part from the Tenth Amendment the powers are exercised to protect or promote the public order health safety morals and general welfare b Relations Among the States i The Privileges and Immunities Clause Under Article IV a state cannot treat a citizen of another state differently than it treats its own citizens also guarantees right of interstate travel ii The Full Faith and Credit Clause States must respect the public acts records and judicial proceedings of every other state c The Separation of Powers there are 3 branches of government and each performs a separate function so that no branch may exercise authority over any other d The Commerce Clause Article I Section 8 gives Congress power to regulate interstate commerce and commerce with foreign nations commerce is all business dealings that affect more than one state i The Expansion of National Powers under the Commerce Clause Congress can regulate seemingly local activities if they are deemed to substantially affect interstate commerce ii The Commerce Clause Today authorizes the national government to regulate almost every commercial economic enterprise in the US iii The Dormant Commerce Clause states do not have the authority to regulate interstate commerce e The Supremacy Clause and Federal Preemption the Constitution is the Supreme Law of the Land and federal law prevails over state law f The Taxing and Spending Powers Art I Section 8 gives Congress the power to lay and collect Taxes Duties Imposts and Excises but all taxes must be uniform among the states also gives Congress the power to pay the Debts and provide for the common Defence and general Welfare of the United States II Business and the Bill of Rights a Limits on Both Federal and State Governmental Actions the first 10 Amendments to the Constitution Bill of Rights limits the powers of the federal government i The Fourteenth Amendment no state shall deprive any person of life liberty or property without due process of law the Bill of Rights restrictions on power apply to the states also ii Bill of Rights protections are not absolute b Freedom of Speech 1st Amendment guarantees freedom of religion speech press assembly and petition as well as symbolic speech i Reasonable Restrictions government can restrict speech if the restriction is content neutral or if the regulation serves a compelling state interest and is narrowly tailored to achieve that interest ii Corporate Political Speech afforded the same First Amendment protections Citizens United iii Commercial Speech also protected but to a lesser degree restrictions are valid if 1 Seek to implement a substantial government interest 2 Directly advance the interest 3 Goes no further than necessary to accomplish the objective iv Unprotected Speech some type of speech is never protected including defamatory speech threats child pornography fighting words 1 Obscene Speech unprotected material is obscene if a The average person finds that it violates contemporary community standards b Work taken as a whole appeals to a prurient interest in sex c Work shows patently offensive sexual conduct d Work lacks serious redeeming literary artistic political or scientific merit 2 Online Obscenity child porn is illegal c Freedom of Religion Congress may not make any laws respecting an establishment of religion or preventing the free exercise thereof i Establishment Clause government cannot establish a religion nor promote endorse or show preference for any religion ii Free Exercise Clause a person can hold any religious belief she he wants or no religious belief 1 Restrictions permissible if government has compelling interest and the restriction is the only way to further that interest 2 Public Welfare Exception applies when religious practices endanger the public d Searches and Seizures 4th Amendment protects the right of the people to be secure in their persons houses papers and effects Come back with a warrant i Search Warrants and Probable Cause to get a search warrant law enforcement must convince a judge that they have probable cause to believe a search will reveal evidence of specific illegal activity ii Searches and Seizures in Business warrant is required to search or seize records in the hands of attorney or accountant but not for seizures of spoiled or contaminated food or to search a business in a highly regulated industry e Self Incrimination 5th amendment states that no person can be compelled in any criminal case to be a witness against himself or herself does not apply to corporations III Due Process and Equal Protection a Due Process both 5th an 14th Amendments provide that no person shall deprived of life liberty or property without due process of law applies to corporations i Procedural Due Process government must give notice and a chance to object if they decide to take any life liberty or property ii Substantive Due Process if a law or other governmental actions limits a fundamental right it will be held to violate substantive due process unless it promotes a compelling or overriding state interest b Equal Protection 14th Amendment states that a state may not deny to any person within its jurisdiction the equal protection of the laws applies to the federal government through the Due Process Clause of the 5th Amendment government must treat similarly situated individuals in a similar manner if a law distinguishes between individuals a court will examine it with one of three standards i Strict Scrutiny used if law inhibits exercise of fundamental right or if classification is based on race national origin or citizenship status the law must be necessary to promote a compelling state interest ii Intermediate Scrutiny applied in cases involving discrimination based on gender or legitimacy laws must be substantially related to important governmental objectives iii Rational Basis Test in matters of social or economic welfare a classification is considered valid if there is any conceivable rational basis on which the classification might relate to any legitimate government interest IV Privacy Rights a There is no explicit right to privacy in the Constitution but the document as a whole has been interpreted to grant one through the First Third Fourth Fifth and Ninth Amendments b Federal Statutes Affecting Privacy Rights