MGMT 211 Lecture 2 Outline of Last Lecture I. Chapter Onea. Introductionb. Definition of Lawc. Sources of Lawd. Classifications of LawII. Beginning overview of Chapter 2Outline of Current LectureI. Continue Chapter 2a. Historical context of the adoption of the Constitutionb. Constitutional Convention-Philadelphia-May 1787c. Division of authority from Constitutiond. Commerce clausee. Limitation on the Commerce Clausef. Supremacy ClauseCurrent LectureI. Continue Chapter 2a. Historical context of the adoption of the Constitutioni. In retrospect, declaring independence was a dumb move by the colonists1. They had no army or navy2. They cheated during battle-guerrillaa. Hid behind trees3. Bloody war4. Won due to leadership and luck5. There was a threat that the British would returna. New nation was a confederation-all power with the statesi. States=bulls tied together with stringii. The new national government had no power1. Trade barriers developed between states2. No power to tax the coloniesa. Therefore, could not raise an armyiii. Shay’s Rebellion1. In western Massachusetts, farmers were losing their farms to foreclosurea. Depression due to Revolutionary war2. Daniel Shay: leader of attacksa. Robbed weapons from federal arsenalsb. Rode from courthouse to courthousei. Pulled guns out to stop foreclosures3. Neither central government nor state governments could raise a militia to stop Shaya. Eventually stopped by mercenary army, which was formed with private donationsiv. Meeting in Annapolis, Maryland1. September 17862. There to discuss weaknesses of Articles of Confederation a. Only 12 representatives from 5 statesi. All states had to be present in order to amend Articlesv. Agreement to call Continental Congress meeting in May 1787b. Constitutional Convention-Philadelphia-May 1787i. Create a strong central government, but not too strong1. Limited government with 3 branchesa. Separation of powers-checks and balancesii. 55 representatives of 12 states1. No Rhode Island representativesiii. Delegates decide to get rid of Articles of Confederation1. Illegal-not within their power; they did it anyway2. Changed the rule about unanimous agreement; now, only 3/4 of colonies had to agree for ratificationiv. Conflicting ideas 1. North did not want slavery; south did2. Little state/Big state power strugglev. Series of Compromises1. Statesmen had to work togethera. If no compromise made, it was left outi. Slavery, votingvi. There were more uneducated than educated1. Made the rich afraid of the masses2. Attempted to limit voting to only property ownersvii. Evening out representation between little and big states1. Great Compromisea. Senate: every state has 2 seatsb. House: proportionate to populationi. Had power to create legislation pertaining to the federal budget and taxation2. 3/5 Compromisea. South Carolina wanted all people to have a vote, including slavesi. There were more slaves than whites, so there would be more votesb. Compromise: count slaves as 3/5 of a person for votingi. In return: stop importation of slave in 20 yearsviii. A lot was left out; very generalizedix. Federalists1. John Jay, Alexander Hamilton, James Madison-wrote the Federalistpapers2. In favor of the Constitutionx. Anti-Federalists1. Against the Constitution2. Thomas Jeffersona. Highly respected; massive influence3. Felt that the Constitution made the national government too strongxi. Bill of Rights1. Guarantee personal rights and states’ rightsxii. With all of that, the Constitution was ratified March 1789c. Division of authority from Constitutioni. System of checks and balancesii. 3 basic governmental units: executive, judicial and legislative1. Limited2. Can only practice powers givena. Enumerated powers for Congress in Article 1, Section 8i. Found in Commerce Clauseb. Article 2: executive branchc. Article 3: judicial branchd. Commerce Clause: Article 1, Section 8i. Most significant power to regulate businessii. Congress will have power to regulate commerce:1. With foreign nations2. Amongst several states3. With Indian tribesiii. Amongst states-means different things to different people1. Defined by the Supreme Courtiv. Gibbons v. Ogden1. Gibbons: from New Jersey; licensed boats under federal statute, not New York2. Ogden: New York court order to stop Gibbons from operating without a state license3. To the Supreme Courta. John Marshallb. Interstate: between states; Intrastate: within a statec. 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 unconstitutionale. Opened a door: Congress has the power to regulate business that affects more than 1 statev. The Commerce Clause was used in order to regulate big businessvi. NLRB v. Jones and Laughlin Steel Corp1. J&L claimed that the federal government couldn’t make them work during strikes because they were within one state2. So, the federal government proved interstate commercea. If the strike stopped production, it would burden interstatecommercevii. Wickard v. Filburn1. Filburn overproduced wheat, which drops wheat pricesa. There was a farm program in place to keep prices under control; had to stay within allotment2. Filburn said government had no right to regulate ita. He kept the wheat to make feed for his animals; it stayed on the farm and never left3. Government: what if all farmers made their own feed? There would then be a decline in the feed market, which affects interstate commercea. Cumulative effect principleb. Showed that even local activity can be regulatedviii. McCulloch v. Maryland1. National government had a bank with different branches a. One was in Baltimore, Marylandb. All banks in Maryland were taxed, even the branch2. McCulloch refused to pay tax and was sued by the state3. Maryland argued the 10th amendment-powers not specifically given/prohibited were left to the states4. The Court used Article 2 of Enumerated powersa. National government has power of necessary and proper clausei. The bank is a business that had to run, and taxationwould interfere with thatii. Therefore, Maryland’s tax unconstitutionalix. Southern states wanted to protect slavery1. Led by South Carolina, which had been screaming for states’ rightsfor 40 years2. Lincoln was elected3. To protect slavery, South Carolina and all other southern states secededa. Lincoln asserted they didn’t have that right, but they did it anywayb. When South Carolina requested Fort Sumter returned to