1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-1 Chapter 2 Constitutional Law for Business and E-Commerce

2. The Preamble to Constitution the United States of America “We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America”. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-2

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-3 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

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-4 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

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-5 Separation of Powers Article I Establishes the legislative branch of government Article II Establishes the executive branch of government Article III Establishes the judicial branch of government

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-6 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.

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-7 Supremacy Clause Establishes that the federal Constitution, treaties, federal laws, and federal regulations are the supreme law of the land Preemption doctrine

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-8 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

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-9 What Is Interstate Commerce? 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.

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-10 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.

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-11 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

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-12 1 st Amendment Freedom of Speech Fully protected speech Speech the government cannot prohibit or regulate Includes political speech

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-13 1 st Amendment Freedom of Speech Limited protected speech Commercial speech Offensive speech Can be subject to time, place, and manner restrictions

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-14 1 st Amendment Freedom of Speech Unprotected speech Fighting words Defamatory language Child pornography Obscene speech Dangerous Incites Violence

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-15 1 st 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

16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-16 14 th 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.

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-17 14 th 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

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-18 5 th and 14 th 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

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-19 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

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 5-20