Midterm 2 Chapter 4 5 44 Chapter 4 I Introduction A The constitution is supreme law of land and no state may pass a law that conflicts with it Laws governing business have their origin in lawmaking authority from the constitution II Constitutional Powers of the Government A After the revolutionary war the states through the Articles of Confederation 1781 1789 created a confederal form of government in which states had all the power There were too many chiefs and it lacked funding and adequate power to resolve problems especially between states When problems arose a national convention was called and the U S Constitution was drafted 1789 B The constitution represents a federal form of government national government and states share sovereign power The national government as specific powers and has implied power to take actions necessary to carry out its designated powers enumerated powers All other powers are given to the states by 10th amendment States have police powers state regulatory powers like zoning licensing health safety etc local governments including cities have police powers Generally state laws enacted pursuant to a state s police powers carry strong assumption of validity C Relations among the states privileges and immunities clause full faith and credit clause 1 Privileges and immunities clause article IV Section 2 of U S Constitution provides that citizens of each state shall be entitled to all privileges and immunities of citizens in the several states Meaning when a citizen of one state does business with another the foreign state the foreign state must have substantial reason from treating the nonresident differently and they must establish the discrimination is substantially related to the states ultimate purpose in adopting the legislation or regulating the activity a Case Examples i ii iii Toomer v Witsell 1948 state cannot charge non residents 2 500 for a shrimp fishing license while charging residents only 25 Hicklin v Orbeck 1978 State cannot limit admission to the Bar i e practices of law to residents based on the objective of stemming unemployment in the state Saenz v roe 1999 state colleges and universities can charge higher tuition for out of state residents because they have not contributed to the welfare of the state through payment of taxes and other actions 2 Full faith and credit clause Article IV Section 1 of US Constitution provides that full faith and credit shall be given to each state to the public acts records and judicial proceedings of every other state Applies only to civil matters Ensures rights established in deeds contracts and property rights will be honored by other states Was originally in articles of confederation Essential for conduct of business Public Policy Exemption However if a contract property right created in one state violates a strong statute of another state that state does not require the other state to recognize or enforce it Some states rely on this to refuse to recognize same sex marriages D Separation of Government s power executive President enforces laws 3 judicial Federal Courts interprets the laws System of checks and balances allows each branch to limits the actions of the other two three branches 1 legislative Congress makes the laws 2 Checks and balances 1 legislative branch can enact a law but executive branch can veto the law Congress can override Presidential veto with 2 3 vote 2 Executive branch is in charge of foreign affairs but treaties with foreign governments require advice and consent of the Senate 3 Congress determines jurisdiction of federal courts but president appoints federal judges with advice and consent of senate but judicial branch has power to hold actions of other two branches unconstitutional 4 US President is Commander in chief of US Armed Forces but only Congress can declare war E The Commerce Clause Article I Section 8 of U S Constitution gives Congress right to regulate commerce with foreign nations and among several states and within the Indian tribes Among typically means commerce between states interstate commerce IC but Gibbons v Ogden 91824 ruled that the national government could regulate intrastate commerce within states as long as it substantially affected commerce involving more than one state called the Affectation Doctrine 1 Gibbons v Ogden brought way to more powers given to national government because they substantially affect interstate commerce Heart of Atlanta Motel v United States 1964 Supreme Court upheld the federal government s authority to prohibit racial discrimination nationwide in public facilities based on commerce clause powers 2 Wickard v Filburn 1942 Congress even used the clause to regulate a farmer s production of wheat on his own property His family s consumption reduced the demand for wheat and thereby affected Interstate commerce 3 Lately Congress has begun to curb the national governments regulatory power In 1995 court held that Congress exceeded authority and struck down an act banning the possession of guns within a thousand feet from any school a Cases US v Lopez Congress Gun Free School Zone has nothing to do with commerce Printz v US 1997 Congress cannot require states to conduct background checks under the Bradley Handgun Violence Prevention Act of 1993 US v Morrison 2000 Congress cannot create a federal cause of action for domestic violence under the Violence Against Women Act of 1994 Obamacare 2012 Congress lacked authority under commerce clause to require people to buy health insurance But it was decided in a 5 4 vote of Supreme Court that Congress had the power to require it under the Taxing Clause of the US Constitution 4 In one state the court allowed the government to regulate noncommercial activities taking place within a state s boarders Case in Point Marijuana is illegal under the federal Controlled Substance Act but many states have legalized medical marijuana Two Californian women sued the government after it was confiscated In 2005 the Supreme Court held that congress has authority to prohibit the intrastate possession and noncommercial cultivation of marijuana as part of larger regulatory scheme of CSA So stated users are not shielded from federal prosecution Gonzales v Raich 2005 allowed Congress to use the CSA to prohibit use of marijuana for any purpose even medical 5 Dormant Commerce Clause US Supreme court interpreted law to give exclusive power to government the positive aspect However it implies that states do not have
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