Business and the ConstitutionChapter 5I. The Constitutional Powers of Governmenta. A Federal Form of Government: states regulate affairs within their bordersthrough 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 welfareb. Relations Among the Statesi. 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 travelii. 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 overany otherd. 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 statei. The Expansion of National Powers under the Commerce Clause: Congress can regulate seemingly local activities if they are deemedto substantially affect interstate commerceii. The Commerce Clause Today: authorizes the national government to regulate almost every commercial/economic enterprise in the USiii. The “Dormant” Commerce Clause: states do not have the authorityto regulate interstate commercee. The Supremacy Clause and Federal Preemption: the Constitution is the Supreme Law of the Land and federal law prevails over state lawf. The Taxing and Spending Powers: Art I, Section 8 gives Congress the power to “lay and collect Taxes, Duties, Imposts and Excises” but all taxesmust be uniform among the states; also gives Congress the power to “pay the Debts and provide for the common Defence and general Welfare of theUnited States”II. Business and the Bill of Rightsa. Limits on Both Federal and State Governmental Actions: the first 10 Amendments to the Constitution (Bill of Rights) limits the powers of the federal governmenti. 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, alsoii. Bill of Rights protections are not absoluteb. Freedom of Speech: 1st Amendment guarantees freedom of religion, speech, press, assembly and petition, as well as symbolic speechi. 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 interestii. Corporate Political Speech: afforded the same First Amendment protections; Citizens Unitediii. Commercial Speech: also protected, but to a lesser degree; restrictions are valid if:1. Seek to implement a substantial government interest2. Directly advance the interest3. Goes no further than necessary to accomplish the objectiveiv. Unprotected Speech: some type of speech is never protected, including defamatory speech, threats, child pornography, “fighting words:1. Obscene Speech: unprotected; material is obscene ifa. The average person finds that it violates contemporary community standardsb. Work taken as a whole appeals to a prurient interest in sexc. Work shows patently offensive sexual conductd. Work lacks serious redeeming literary, artistic, political or scientific merit2. Online Obscenity: child porn is illegalc. Freedom of Religion: Congress may not make any laws respecting an establishment of religion or preventing the free exercise thereofi. Establishment Clause: government cannot establish a religion, nor promote, endorse or show preference for any religionii. Free Exercise Clause: a person can hold any religious belief she/hewants, or no religious belief1. Restrictions permissible if government has compelling interest and the restriction is the only way to further that interest2. Public Welfare Exception: applies when religious practices endanger the publicd. 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 activityii. 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 industrye. 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 corporationsIII. Due Process and Equal Protectiona. 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 corporationsi. 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 interestb. 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 interestii. Intermediate Scrutiny: applied in cases involving discrimination based on gender or legitimacy; laws must be substantially related to important governmental objectivesiii. 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 interestIV. Privacy Rightsa. There is no explicit right to privacy in the Constitution, but the document