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Chapter 4 Notes

by: Koralyssa Graham

Chapter 4 Notes MGMT 455

Marketplace > Purdue University > MGMT 455 > Chapter 4 Notes
Koralyssa Graham
Business Law

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This 4 page Class Notes was uploaded by Koralyssa Graham on Monday February 23, 2015. The Class Notes belongs to MGMT 455 at Purdue University taught by Gothard in Spring2015. Since its upload, it has received 131 views.


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Date Created: 02/23/15
Chapter 4 Notes Monday February 23 2 15 1 25 PM The Constitution as the Foundation of the Legal Environment The US Consitution amp the Federal System Federal System the system of govt in which a central govt is given power to admin to nat39l concerns while individ States retain the power to admin local concerns What a consitution is Constitution a body of principles that establishes the structure of a govt and the relationship of the govt to the people who are governed The Branches of the Govt Tripartite threepart division of govt Legislative branch the branch of govt Congress formed to make laws Executive branch the branch of govt Prez formed to execute laws Judicial branch the branch of govt courts formed to interpret laws Bicameral twohouse form of the legislative branch of govt The US Constitution amp the States Delegated powers powers expressiver granted the nat39l govt by the Constitution Shared powers powers that held by both state amp nat39l govts state power to impose taxes as well as federal regulations of the use of navigable waterways within a state is joint state amp federal regulations FllG J EE 47 Invmmmrnnl i If the United SWIM THE FHMILIE EII39HE S Ma tumult U Mil Exll39ili39llli WINEI39ll U I METRE U5 AM EHHFHI 5M I39HMEHIE l ll FU IWE EIILIELJETIIT39WE mumml EIH39UTWE lliill ll lll l li I leim39fIAll I A EIIMI Hl ll i l WE MQIEHETI FS I illicit NEH MIME 5 lllvll 39 lli H WEIHMQIHIF MGMT 455 Page 1 Police power the power to govern the power to adopt laws for the protection of the public health welfare safety amp morals states may req businesses to be licensed w state agencies to protect personal dealings w the business Ex postfacto law a law making criminal an act that was lawful when done and that increases the penalty when done Such laws are generally prohibited by constitutional provisions Prohibited power Federal Supremacy Preemption the federal govt39s superior regulatory position over state laws on the same subject area Express Federal Regulation The Constitution amp statutes passed by Congress are the supreme law of the land and they cancel out any conflicting state law Federal law always prevails Silence of Congress The silence of the Congress in failing to cover a particular subject area indicates that Congress does not want any law on the matter Effect of Federal Deregulation Deregulation cannot be considered authorization for state regulation Interpreting amp Amending the Constitution Bedrock view a strict constitutionist interpretation of a constitution Livingdocument view the term used when a constitution is interpreted according to changes in conditions For the last century the Supreme Court has followed the livingdocument view This view has resulted in strengthening the power of the federal government permitting the rise of administrative agencies and expanding the protection of human rights lFlIEUllE iii Amending the U25 quotconstitution llHlE IZHHM I all U I LIUII H39 EM zIJHIiEHWE Tillile MNEHEHT F i m I I r lmi Eii 39lp mi Eliy E i quotin II uniJ 39 qw lug i li yjixu liai 1l l j j jg w him albifiijj u l y ig r bpi i39 39a Formal Amendment Only 27 amendments have been amended to the Constitution Judicial nterpretation Generally interpretation is used to apply the Constitution to a new situation that could not have been foreseen when the written Constitution was adopted Practice Electoral college Treaty approval from Senate The Living Constitution consists of 1 Strong govt 2 Strong Prez 3 Eclipse of the States federal business laws 4 Administrative Agencies MGMT 455 Page 2 Federal Powers The Power to Regulate Commerce Commerce clause that section of the US Constitution allocating business regulation quotto regulate commerce with foreign nations and among the several states and with the Indian tribesquot 1 The Commerce power becomes a general welfare power a Freedom of Access to Clinic Entrance Act b NLRB vJones amp Laughlin Steel 2 The Commerce Clause Today a So long as the fed regulation relates to economiccommercial activity it is constitutional b If the underlying activity is not economic and has only an economic impact the Supreme Court has imposed restrictions on congressional authority under the commerce clause 3 The Commerce Power as a Limitation on States a Prevents states from acting in any way that interferes with federal regulation or burdens interstate commerce b A state cannot impose a high tax on goods imported from another state that it imposes on the same kind of goods produced in its own territory c State regulation designed to advance local interests may conflict with the commerce clause and be invalid Financial Powers 1 Taxing Power a Congress shall have power to lay and collect taxes duties imposts and excises to pay the debts and provide for the common defence and general welfare of the United States 2 Spending Power a The federal government may use tax money and borrowed money quotto pay the debts and provide for the common defence and general welfare of the United States 3 Banking Power a Federal Reserve System Constitutional Limitations of Government Due Process Clause in the Fifth amp Fourteenth Amendments a guarantee of protection from unreasonable procedures amp unreasonable laws Because the due process concept is a limitation on governmental action it does not apply to transactions between private persons or to private employment or other nonpublic situations Quasijudicial proceedings forms of hearings in which the rules of evidence amp procedures are more relaxed but each side still has a chance to be heard What constitutes Due Process Due process does not require a trial on every issue of rights Shortcut procedures such as grade grievance panels have resulted as a compromise for providing the right to be heard along with a legitimate desire to be expeditious in resolving these issues Equal Protection of the Law The Constitution prohibits the states and the national government from denying any person the MGMT 455 Page 3 equal protection of the law This guarantee prohibits a government from treating one person differently from another when there is no reasonable ground for classifying them differently Reasonable Classification Florida recount for undervotes for GoreBush race Improper Classification On the basis of race national origin or religion Privileges amp Immunities Privileges amp Immunities clause a clause that entitles a person going into another state to make contracts own property and engage in business to the same extent as citizens of that state Protection of the Person There is no general provision declaring that the government shall not impair rights of persons The Constitution does not mention the phrase quotunalienable right that was part of the Declaration of Independence During the last six decades the Supreme Court has been interpreting the rights in these amendments and has been nding constitutional protection for a wide array of ri hts o erson that are not exressl 39 39 39 quot MGMT 455 Page 4


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