1. Chapter 4 Constitutional Law for Business and E-Commerce
PowerPoint Slides to accompany THE LEGAL ENVIRONMENT OF BUSINESS AND ONLINE COMMERCE 5E, by Henry R. Cheeseman
Chapter 4
Constitutional Law for
Business and E-Commerce
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2. Major Functions of the Constitution
Creates the three branches of government
Executive
Legislative
Judicial
Protects individual rights by limiting the government’s ability to restrict those rights
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3. Federalism and Delegated Powers
Federalism—the U.S. form of government; the federal government and the 50 state governments share powers
Enumerated powers—certain powers delegated to the federal government by
the states
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4. Separation of Powers Article I Article II Article III
Establishes the legislative branch of government
Article II
Establishes the executive branch of government
Article III
Establishes the judicial branch of government
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5. Checks and Balances
Certain checks and balances are built into the Constitution to ensure that no one branch of the federal government becomes too powerful.
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6. Supremacy Clause
Establishes that the federal Constitution, treaties, federal laws, and federal regulations are the supreme law of the land
Preemption doctrine
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7. Commerce Clause
Grants Congress the power “to regulate commerce with foreign nations, and among the several states, and with Indian tribes”
Gives the federal government authority to regulate interstate commerce
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8. What Is Interstate Commerce?
Commerce that moves between states or affects commerce between states
Intrastate commerce
Local commerce that does not move between states
The federal government may regulate intrastate commerce if it affects interstate commerce.
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9. State “Police Power”
States can enact laws to protect or promote public health, safety, morals, and general welfare.
State and local laws cannot unduly burden interstate commerce.
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10. Bill of Rights The first 10 amendments to the U.S. Constitution
Most protections also apply to “artificial” persons such as corporations.
Incorporation Doctrine
A doctrine that states that most fundamental guarantees contained in the Bill of Rights are applicable to state and local government action as well as to action of the federal government
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11. 1st Amendment Freedom of Speech
Fully protected speech
Speech the government cannot prohibit or regulate
Includes political speech
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12. 1st Amendment Freedom of Speech
Limited protected speech
Commercial speech
Offensive speech
Can be subject to time, place, and manner restrictions
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13. 1st Amendment Freedom of Speech
Unprotected speech
Fighting words
Defamatory language
Child pornography
Obscene speech
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14. 1st Amendment Freedom of Religion
Establishment Clause
Prohibits government from establishing a government-sponsored religion
Free Exercise Clause
Prohibits government from enacting laws that prohibit or inhibit people from participating in or practicing their chosen religion
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15. 14th Amendment Equal Protection
The government cannot “deny to any person within its jurisdiction the equal protection of the laws.”
If a law treats “similarly situated” persons differently, a court may review its constitutionality, using one of three tests.
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16. 14th Amendment Equal Protection
Strict scrutiny test
Applied by courts to classifications based on race
Intermediate scrutiny test
Applied to by courts to classifications based on protected classes other than race (e.g., sex or age)
Rational basis test
Applied to by courts to classifications not involving a suspect or protected class
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17. 5th and 14th Amendment Due Process Clause
Substantive due process
Requires governmental laws to be clear and not overly broad; the test is whether a reasonable person can understand the law
Procedural due process
Requires government to give people proper notice and hearing before depriving them of life, liberty, or property
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18. Privileges and Immunities Clause
Prohibits states from enacting laws that unduly discriminate in favor of their residents
Only invidious discrimination is prohibited.
Only applies to citizens, not corporations
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