MGMT 211 Lecture 2 Outline of Last Lecture I Chapter One a Introduction b Definition of Law c Sources of Law d Classifications of Law II Beginning overview of Chapter 2 Outline of Current Lecture I Continue Chapter 2 a Historical context of the adoption of the Constitution b Constitutional Convention Philadelphia May 1787 c Division of authority from Constitution d Commerce clause e Limitation on the Commerce Clause f Supremacy Clause Current Lecture I Continue Chapter 2 a Historical context of the adoption of the Constitution i In retrospect declaring independence was a dumb move by the colonists 1 They had no army or navy 2 They cheated during battle guerrilla a Hid behind trees 3 Bloody war 4 Won due to leadership and luck 5 There was a threat that the British would return a New nation was a confederation all power with the states i States bulls tied together with string ii The new national government had no power 1 Trade barriers developed between states 2 No power to tax the colonies a Therefore could not raise an army iii Shay s Rebellion 1 In western Massachusetts farmers were losing their farms to foreclosure a Depression due to Revolutionary war 2 Daniel Shay leader of attacks a Robbed weapons from federal arsenals b Rode from courthouse to courthouse i Pulled guns out to stop foreclosures 3 Neither central government nor state governments could raise a militia to stop Shay a Eventually stopped by mercenary army which was formed with private donations iv Meeting in Annapolis Maryland 1 September 1786 2 There to discuss weaknesses of Articles of Confederation a Only 12 representatives from 5 states i All states had to be present in order to amend Articles v Agreement to call Continental Congress meeting in May 1787 b Constitutional Convention Philadelphia May 1787 i Create a strong central government but not too strong 1 Limited government with 3 branches a Separation of powers checks and balances ii 55 representatives of 12 states 1 No Rhode Island representatives iii Delegates decide to get rid of Articles of Confederation 1 Illegal not within their power they did it anyway 2 Changed the rule about unanimous agreement now only 3 4 of colonies had to agree for ratification iv Conflicting ideas 1 North did not want slavery south did 2 Little state Big state power struggle v Series of Compromises 1 Statesmen had to work together a If no compromise made it was left out i Slavery voting vi There were more uneducated than educated 1 Made the rich afraid of the masses 2 Attempted to limit voting to only property owners vii Evening out representation between little and big states 1 Great Compromise a Senate every state has 2 seats b House proportionate to population i Had power to create legislation pertaining to the federal budget and taxation 2 3 5 Compromise a South Carolina wanted all people to have a vote including slaves i There were more slaves than whites so there would be more votes b Compromise count slaves as 3 5 of a person for voting i In return stop importation of slave in 20 years viii A lot was left out very generalized ix Federalists 1 John Jay Alexander Hamilton James Madison wrote the Federalist papers 2 In favor of the Constitution x Anti Federalists 1 Against the Constitution 2 Thomas Jefferson a Highly respected massive influence 3 Felt that the Constitution made the national government too strong xi Bill of Rights 1 Guarantee personal rights and states rights xii With all of that the Constitution was ratified March 1789 c Division of authority from Constitution i System of checks and balances ii 3 basic governmental units executive judicial and legislative 1 Limited 2 Can only practice powers given a Enumerated powers for Congress in Article 1 Section 8 i Found in Commerce Clause b Article 2 executive branch c Article 3 judicial branch d Commerce Clause Article 1 Section 8 i Most significant power to regulate business ii Congress will have power to regulate commerce 1 With foreign nations 2 Amongst several states 3 With Indian tribes iii Amongst states means different things to different people 1 Defined by the Supreme Court iv Gibbons v Ogden 1 Gibbons from New Jersey licensed boats under federal statute not New York 2 Ogden New York court order to stop Gibbons from operating without a state license 3 To the Supreme Court a John Marshall b Interstate between states Intrastate within a state v vi vii viii ix c Since this involved more than one state the federal gov has the power to regulate it not New York d So court order was ruled unconstitutional e Opened a door Congress has the power to regulate business that affects more than 1 state The Commerce Clause was used in order to regulate big business NLRB v Jones and Laughlin Steel Corp 1 J L claimed that the federal government couldn t make them work during strikes because they were within one state 2 So the federal government proved interstate commerce a If the strike stopped production it would burden interstate commerce Wickard v Filburn 1 Filburn overproduced wheat which drops wheat prices a There was a farm program in place to keep prices under control had to stay within allotment 2 Filburn said government had no right to regulate it a He kept the wheat to make feed for his animals it stayed on the farm and never left 3 Government what if all farmers made their own feed There would then be a decline in the feed market which affects interstate commerce a Cumulative effect principle b Showed that even local activity can be regulated McCulloch v Maryland 1 National government had a bank with different branches a One was in Baltimore Maryland b All banks in Maryland were taxed even the branch 2 McCulloch refused to pay tax and was sued by the state 3 Maryland argued the 10th amendment powers not specifically given prohibited were left to the states 4 The Court used Article 2 of Enumerated powers a National government has power of necessary and proper clause i The bank is a business that had to run and taxation would interfere with that ii Therefore Maryland s tax unconstitutional Southern states wanted to protect slavery 1 Led by South Carolina which had been screaming for states rights for 40 years 2 Lincoln was elected 3 To protect slavery South Carolina and all other southern states seceded x xi xii xiii a Lincoln asserted they didn t have that right but they did it anyway b When South Carolina requested Fort Sumter returned to them Lincoln refused i Battle at Sumter started the Civil War 4