CHAPTER 5: CONSTITUTIONAL GROUNDS FOR REGULATING BUSINESS

CHAPTER 5:CONSTITUTIONAL GROUNDS FOR REGULATING BUSINESS

Learning Objectives:• Review the Federal Form of Government• Consider the Nature of Federalism

Commerce Clause Supremacy Clause and Preemption

Checks on the Power of Government Privacy Rights

Chapter 5 2

CHAPTER 5: CONSTITUTIONAL GROUNDS FOR REGULATION BUSINESS

• Concept of Federalism

• Purposes of the Federal Constitution:1. Creates the Federal Government

2. Allocates Powers of Federal and State Governments

3. Imposes Limits on the Power of Government

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INTRODUCTION

• Doctrine of Separation of Powers:1. Legislative

2. Executive

3. Judicial

• System of Checks and Balances

Chapter 5 4

FEDERAL GOVERNMENT

1. Nature of Federalism

2. Distribution of Powers –– FEDERAL Enumerated Powers– STATE Police Powers– Concurrent Powers– Relationships Among the States

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FEDERALISM

3. Commerce Clause– “Active” Commerce Clause

Application– “Dormant” Commerce Clause

Application

4. Supremacy Clause– Purpose of the Clause– Doctrine of Preemption

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FEDERALISM

1. Basic Principles Associated with Constitutional Limitations

– “State Action” Requirement– Constitutional Balancing Tests:

• Strict Scrutiny Test• Rational Basis Test• Intermediate Scrutiny Test

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CONSTITUTIONAL CHECKS ON GOVERNMENT POWER

2. Specific Applications:– Freedom of Speech:

• Political Speech• Commercial Speech

– Takings– Due Process:

• Procedural Due Process• Substantive Due Process

– Equal ProtectionChapter 5 8

CONSTITUTIONAL CHECKS ON GOVERNMENT POWER

• Development of Privacy Rights

• Applications

Chapter 5 9

PRIVACY RIGHTS

CHAPTER 5: CONSTITUTIONAL GROUND FOR REGULATING BUSINESS