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BLAW 3201 (13)
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Chapter 4

Chapter 4 Outline (scored 92%)

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Business Law
BLAW 3201
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Chapter 4Constitutional Authority to Regulate BusinessIThe Constitutional Powers of GovernmentaFederal form of government the national government and the states share sovereign powerbThe Tenth Amendment to the Constitution The powers not delegated to the United States by the Constitution nor prohibited by it to the States are reserved to the States respectively or to the peoplecRelations among the StatesiThe Privileges and Immunities Clause Article IV Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States when a citizen of one state engages in basic essential activities in another state the foreign state must have substantial reason for treating the nonresident differently from its own residents iiThe Full Faith and Credit Clause Article IV Full Faith and Credit shall be given in each State to the public Acts Records and judicial Proceedings of every other State applies only to civil matters and ensures that rights established under deeds wills contracts and the like in one state will be honored by other statesdThe Separation of National Government PowersiThe Constitution provided for three branches of government 1 the legislative branch makes the laws 2 the executive branch enforces the law and 3 the judicial branch interprets the lawsiiEach branch performs a separate function and NO branch may exercise the authority of another branch The use of the checks and balance system makes sure that no one branch of government can accumulate too much power eThe Commerce ClauseiArticle I Sect 8 to regulate Commerce with foreign Nations and among the several States and with the Indian Tribes to prevent states from establishing laws and regulations that would interfere with trade and commerce among the states the Constitution expressly delegated the power to regulate interstate commerceiiThe commerce clause raised many questions when it used the word among in the phrase among the several States meant between the states or between and within the states 1Gibbons v Ogden held that commerce within the states could also be regulated by the national government as long as the commerce substantially affected commerce involving more than one state 2Wickard v Filburn held that wheat production by an individual farmer intended wholly for consumption on his own farm was subject to federal regulation because it reduced the demand for wheat in the stateiiiRegulatory Powers of the States1State regulatory powers are often referred to as police powerthe broad right of state governments to regulate private activities to protect or promote the public order health safety morals and general welfare ivState Actions and the Dormant Commerce1US Supreme Court has interpreted the commerce clause to mean that the national government has the exclusive authority to regulate commerce that
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