1. Business Law and the Regulation of Business Chapter 4: Constitutional Law By Richard A. Mann & Barry S. Roberts

2. Topics Covered in this Chapter A.Basic Principles of Constitutional Law B.Powers of Government C.Limitations On Government

3. Branches of the Government LEGISLATIVE BRANCH EXECUTIVE BRANCH JUDICIAL BRANCH Click on any of the three branches of government for more details.

4. Basic Principles n Federalism – the division of governing power between the Federal government and the States. n Federal Supremacy – Federal law takes precedence over conflicting State law. n Federal Preemption – right of the Federal government to regulate matters within its power to the exclusion of regulation by the States.

5. Basic Principles n Judicial Review – examination of governmental actions to determine whether they conform to the U.S. Constitution. n Separation of Powers – allocation of powers among executive, legislative, and judicial branches of government. n State Action – actions of governments to which constitutional provisions apply.

6. Separation of Powers: Checks and Balances Judicial Interprets the Law appoints federal judges judicial review confirms appointments veto power Executive Enforces the Law Legislative Makes the Law

7. Powers of Government n Federal Commerce Power – exclusive power of the Federal government to regulate commerce with other nations and among the States. n State Regulation of Commerce – the commerce clause of the Constitution restricts the States' power to regulate activities if the result obstructs interstate commerce.

8. Powers of Government n Federal Fiscal Powers –Taxation and Spending – the Constitution grants Congress broad powers to tax and spend; such powers are important to Federal regulation of the economy. –Borrowing and Coining Money – enables the Federal government to establish a national banking system and to control fiscal and monetary policy. –Eminent Domain – the government's power to take private property for public use with the payment of just compensation.

9. Limitations on Government n Contract Clause – restricts States from retroactively modifying contracts. n Freedom of Speech – First Amendment protects most speech. –Corporate Political Speech –a corporation's right to speak out on political issues. –Commercial Speech – expression related to the economic interests of the speaker and its audience; receives a lesser degree of protection. –Defamation – a tort consisting of a false communication that injures a person's reputation; receives limited constitutional protection.

10. Limitations on Government n Due Process – Fifth and Fourteenth Amendments prohibit the Federal and State governments from depriving any person of life, liberty, or property without due process of law. –Substantive Due Process – determination of whether a particular governmental action is compatible with individual liberties. –Procedural Due Process – requires the governmental decision-making process to be fair and impartial if it deprives a person of life, liberty, or property.

11. Limitations on Government n Equal Protection – requires that similarly situated persons be treated similarly by governmental actions. –Rational Relationship Test – standard of review used to determine whether economic regulation satisfies the equal protection guarantee. –Strict Scrutiny Test – exacting standard of review applicable to regulation affecting a fundamental right or involving a suspect classification. –Intermediate Test – standard of review applicable to regulation based on gender and legitimacy.

12. Limitations upon Government Test/Interest Equal Protection Free Speech Strict Scrutiny Fundamental Rights Suspect Classifications Fundamental Rights Protected Noncommercial Speech Intermediate Gender Legitimacy Commercial Speech Rational Relationship Economic Regulation Nonprotected Speech Substantive Due Process

13. Legislative Branch THE CONGRESS SENATE HOUSE Architect of the Capital United States Botanic Garden General Accounting Office Government Printing Office Library of Congress Office of Technology Assessment Congressional Budget Office Copyright Royalty Tribunal United States Tax Court Back to previous slide

14. Executive Branch The President and Vice President Executive Office of the President White House Office Council on Environmental Quality Office of Management and Budget Office of Science and Technology Policy Council of Economic Advisers National Security Council Office of the United States Trades Representative Office of National Drug Control Policy National Critical Materials Council Office of Administration Office of Policy Development National Space Council Back to previous slide

15. Judicial Branch The Supreme Court of the United States United States Court of Appeals for the Federal Circuit United States Courts of Appeals United States District Courts United States Court of Federal Claims United States Court of International Trade Territorial Courts United States Court of Military Appeals Administrative Office of the United States Federal Judicial Center Back to previous slide