BUSINESS LAW FINAL EXAM Chapters 3 20 Related Cases CHAPTER 3 US Constitution Reflects notion of separation of powers Divided into numbered articles first 10 amendments are Bill of Rights First 3 articles o Article 1 o Article 2 o Article 3 Established congress and gives it the exclusive power to legislate at the federal power Gives executive power to the president Gives judicial power to US Supreme Court and other federal court o Reflects system of checks and balances among congress president courts Courts have political power US Supreme Court makes public policy State and Federal Power to Regulate State Regulatory Power Federal Regulatory Power o US constitution does not list powers that the state legislatures may exercise But only states which powers can only be exercised by Congress ex power to issue currency can only be done at federal level o Everything else power may be exercised by both Congress and state legislatures as both have authority If there is a conflict federal legislation would take priority o Article 1 Section 8 specifies ways Congress can exercise authority in three ways 1 Regulate commerce among the states Supreme courts view of how much authority Congress has over regulated commerce has changed over time Current Supreme Court view congress can regulate purely intrastate activity activity that has taken place exclusively in one state ex Maryland if it has substantial effects on interstate commerce 2 Levy impose and collect taxes Purpose to provide revenue to the federal government Regulatory function heavy taxation on particular activities can reduce those activities if they are socially disfavored ex tax on cigarettes discourage smoking and generate increased revenue 3 Spend for the general welfare Regulatory function in the form of conditional federal grants you get more money if you do certain things we want you to do ex get federal grant money to build more interstate highways if you agree to have a statewide 55mph speed limit CASE Gonzales Case Medical Marijuana In CA it was legal to possess marijuana for medical reasons Federal law makes possession of medical marijuana illegal People using medical marijuana seek injunction Supreme court rules it is permissible for Congress to pass a law which takes precedence over state law Purely intrastate activity taking place exclusively within California s borders has a substantial effect on interstate commerce o Could have an effect on the price of marijuana elsewhere in the country Conclusion if you have a problem with the solution take it up with congress Has to do with 2 other cases 1 Lopez school zone 2 Morrison Dealt with federal law Gun Free School Zone Act Congress made federal law that it s a federal crime to possess a gun in a Supreme court decided the law was unconstitutional o It was not an activity that had a substantial effect on intrastate commerce therefore unconstitutional Dealt with federal law Violence Against Women Act Law gave women right to sue in a federal court for damages if you were a Supreme court rules unconstitutional because it did not have a substantial victim of violence because of sex effect on intrastate commerce Independent Checks on the Federal Government and State Three Key Concepts 1 Incorporation Certain rights guaranteed to you under constitution but you only have these rights if the federal gov t is doing something wrong Due Process Clause has been incorporated into restrictions applicable to state governments even thought the constitution only states what the federal gov t can and cannot do 2 Government Action With respect to most of the rights that you are guaranteed under the federal constitution you can sue for a violation only if the gov t has done something to restrict your rights Ex 1st amendment you can only sue somebody for a violation of your 1st amendment rights only if that person is a gov t actor Can sue public universities 3 Means End Test Federal courts are required to figure out if the laws are unconstitutional through using tests Three Tests 1 Rational Bases a law in constitutional if it bears a reasonable relation to the achievement of legitimate government purpose Almost always results in law being found constitutional easy to meet that the law bears a reasonable relation to the achievement 2 Intermediate Scrutiny the law is substantially related to the achievement of an important gov t purpose Used if law discriminates on basis of sex Ex If there is a law for hiring firefighters making a minimum height and strength restriction obviously more men would pass this restriction than women 3 Strict Scrutiny the law necessary to accomplish a compelling government purpose Ex if law discriminates on the basis of race Almost always will find the law as unconstitutional because there is no compelling gov t purpose to discriminate on the basis of race Court Picks which test applies best to the case law does not have to pass all 3 First Amendment First Amendment rights are not absolute you do not have an absolute right to say whatever you what whenever you want o Ex Cannot yell fire at the movies when there is no fire As a general rule corporations have the same First Amendment rights that individuals do unless talking about commercial speech o Commercial speech gives less protection Receives an intermediate level of First Amendment protection if 1 2 It deals with a lawful activity and It s not misleading Three part test to determine whether a governmental restriction on protected commercial speech speech that is not misleading and does not propose unlawful activity violates the First Amendment 1 Does the government have a substantial interest in whatever restriction it s trying to impose 2 Does the restriction advance the government interest 3 Is the restriction no more extensive than necessary to further the interest o That the restriction is narrowly tailored o Must meet all three restrictions Commercial speech anything that proposes a commercial transaction typically advertisements If engaging in noncommercial speech granted same rights as individuals Due Process Appears in both the 5th and the 14th Amendments both federal and state governments are required to give you due process if they want to take away your life liberty or property o Property anything that you have an entitlement to Two kinds of due process page 71 1 Procedural Due Process establishes the procedures that the government has to follow if going to take away your property anything that you have
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