1. THE CONSTITUTION AND BUSINESS

2. Separation of Powers Power shared by branches of government.  Legislative: enacts legislation appropriates funds.  Executive: commander-in-chief of armed services ensures laws are faithfully executed.  Judicial: interpreting laws and applying them to disputes. Checks and balances  Each branch keeps the others from dominating the government.

3. Supremacy Clause Article. VI. Clause 2 This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.

4. Preemption  If federal law preempts and area of regulation, no state law is permitted.  Any attempted state law will be unconstitutional under the supremacy clause.  Federal preemption is not presumed; it must be clearly and explicitly stated.

5. Commerce Clause Gives Congress power to regulate interstate commerce  Includes any activity that substantially affects interstate commerce.  Most economic legislation is presumed to be constitutional. Commerce Clause as a restriction on state authority.  States have general police power. Health, safety, welfare of its citizenry.  But states cannot regulate interstate commerce. Unless the burden imposed on interstate commerce is outweighed by the state’s interest in enforcing the legislation.

6. 4-5 First Amendment Freedom of speech and the press  Other freedoms: religion, assembly, petition. 1st amendment freedoms are not absolute.  Can’t yell “fire” in a crowded theater.  Can’t injure someone’s reputation with false statements. Content-based restrictions not usually allowed.  E.g., Communications Decency Act

7. State Taxation State taxation of corporate income must be apportioned to allocate the tax burden of interstate commerce among states entitled to impose a tax. To ensure that interstate businesses only pay their fair share of state taxes.

8. 4-6 Corporate Speech Corporate Commercial Speech  Defined: Speech that proposes a commercial transaction.  Less protected than political speech.  Test: Is the speech misleading? Is it related to unlawful activity? Does the state have a substantial interest to achieve by restricting the speech? Will the restriction advance the state’s interest? Is the restriction narrowly drawn? Corporate Political Speech  Examples Supporting political candidates. Influencing a referendum.  Protected to the same extent as political speech of ordinary citizens.

9. 4-7 4th Amendment Protects security in persons, homes, and property. From unreasonable searches and seizures. Warrant requirement.  Probable cause. Exclusionary rule. Searches by administrative agencies.  Warrantless search allowed if industry is subject to pervasive regulation.

10. 4-8 Due Process: the 5th Amendment No deprivation of life, liberty, or property without due process of law.  Applies to federal government, and also to states under 14th Amendment. Procedural due process  Due process requires a fair trial. Substantive due process.  Laws must have a proper purpose.  Economic legislation usually presumed constitutional.  Laws affecting personal rights must bear a substantial relationship to a compelling governmental purpose.

11. 4-9 Takings Clause: the 5th Amendment Taking of property by government requires  A public purpose.  Just compensation. Government regulations can be so burdensome as to be considered a taking.  Especially when the regulation deprives the owner of all economically beneficial use of the property.

12. 14th AMENDMENT DUE PROCESS PRIVILEGES AND IMMUNITIES EQUAL PROTECTION

13. 4-10 14th Amendment CONTINUED Applies the due process clause to the states.  Originally only applied to federal government in 5th amendment. Interpreted to apply most of bill of rights to the states. Equal protection clause.  Prohibits discrimination, especially based on race.