FIN 260740 week 9 notes (11/18)
FIN 260740 week 9 notes (11/18) FIN - 26074 - 001
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This 3 page Class Notes was uploaded by Olivia Zemanek on Friday November 20, 2015. The Class Notes belongs to FIN - 26074 - 001 at Kent State University taught by Timothy D Ludick (P) in Summer 2015. Since its upload, it has received 79 views. For similar materials see LEGAL ENVIRONMENT OF BUSINESS in Finance at Kent State University.
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Date Created: 11/20/15
FIN 26074001 THE LEGAL ENVIRONMENT OF BUSINESS Lecture 9 Notes (11/18) No class next week Happy Thanksgiving! Next Exam (which is the final): December 16 The Constitution A 228 year old document that is respected and revered because it is the oldest governmental charter that is still in existence and still used today. (social security viewed the same way) Stands for the concept that we are NOT a democracy, BUT a REPRESENTATIVE REPUBLIC. o A form of government that allows for some type of representation of you and I in government. Also stands for the proposition that you and I consent to be governed for a common purpose. Constitution also allows for the dispersion of power. Breaks up into three different areas Legislative Branchprimarily the representative branch, makes laws. Executive Branchexecute and enforce the law Judicial Branchable to declare law unconstitutional o These different branches not only break up the power of government, but they also mandate communication between government powers. This allows relationships to thrive. Allows for a team approach where the federal government acts as a coach. (They are the most “powerful” in the team) Federal government is at the very top. Any law that is passed by anyone must be constitutional and if it offends the constitution the courts will rule it unconstitutional. o All laws establish what we can and cannot do. o Rule of Law Once the court passes a law, it has to be honored and followed. Individual prejudices shouldn’t permeate into law/government The Constitution does not tolerate the kind of prejudice presented in the last couple of days (Not letting Syrian refugees enter the states) It also establishes individual rights. Other important concepts in the Constitution o Police power Means that local government has the ability to make laws in that locality. Ex: some states allow medical marijuana or for other reasons it is allowed o Full faith in credit clause A judicial determination from one state has to be totally respected in another state. Whether it was a criminal or civil matter, the decision has to be respected and followed. o Privileges in immunities clause There has to be freedom of travel in all and throughout all 50 states. Also, say if someone in Kent wants to business with someone in Florida, each person has to use same laws as someone in their same states. o Ex post facto laws A law that tries to retroactively change the legal consequences of a law that was passed in the past/ activities that have already happened. These laws are prohibited. o Bills of attainder Laws that seek to penalize a specific individual or a group violates the constitution because of discrimination. The Articles of Confederation (The first Constitution) Problem was that the form of government required unanimous action for a lot of issues. o So, many times the minority could just prevent any action made by the majority. o It was an imprecise way for government to run. o There was no strong central government Now the Constitution advocates a team approach for governing. The Bill of Rights (The first ten amendments) Established individual rights that the government CANNOT take away from us. The very foundation of the constitution. th 14 Amendment o Equal protection amendment Does not give us equal protection under the law, BUT requires that our laws treat us the same unless a rational reason for treating us differently. Examples: o tax rates people who make more, have higher taxes to pay o driving laws people under 16 can’t drive 1 Amendment o Establishment clause No government can establish a religion or favor a religion over another. Requirement of neutrality o Free exercise clause Government cannot make laws that impacts person from exercising their private religion o Freedom of the press and freedom of speech ALL types of communication, not just the spoken word Not absolute. We cannot communicate lies (defamation) Does not protect speech that is obscene. Does not apply to speech that advocates immediate overthrow of public authority Only when violence is communicated can the government step in.