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Business Law I - Constitutional Principles

Chapter 5 Cons tu onal Principles 5.1The US Cons tu on Federalism -- system of government in which power is divided between a central authority and cons tuent poli cal units 5.2 US Governments System of Check and Balances 3 Independent branches of government Cons tu on ensures each branch maintains a separate sphere of power (prevents any branch from unduly power and monopolizing the government Each branch's power keeps other branches from domina ng the government 1. Legisla ve -- law making branch, power to enact legisla on but the president can veto a low that Congress passes, can overturn a presiden al veto with 2/3 votes, if Congress passes a bill and the president signs it the judicial can strike it down as uncons tu onal 2. Execu ve 3. Judicial Under the current system of checks and balances, each branch of government has s own dis nct responsibili es and each one has its powers checked by the other two branches to ensure that no branch has unchecked power to take over the government. Judicial Review --power of a court to review legisla ve and execu ve ac ons, such as a low or cons tu onal, reviews lower court decision Supremacy Clause - Ar cle VI, Paragraph 2, of the US Cons tu on states that the cons tu on and all laws and trea es of the US Cons tu on the supreme law of the land, thus any state or local law that directly con icts with the US Cons tu on or federal laws or trea es is void Concurrent Authority both the state and federal court systems have the power to render a binding verdict for this type of case Federal Preemp on - principle asser ng the supremacy of federal legisla on over state legisla on when both par es pertain to the same subject ma er ( eld preemp on) 5.3 The Commerce Clause Commerce Clause - Clause 3 of Ar cle 1, Sec on 8, of the US Cons tu on, which authorizes and empowers Congress to regulate commerce with foreign Na ons, among the several states and Indian tribes The Commerce Clause as A Source of Authority for the Federal Government Most federal regula ons are exercise of congressional authority under the commerce clause If the law a ects commerce among states, or interstate commerce, the regula on is generally cons tu onal The Commerce Clause as A Restric on on State Authority . Courts have a empted to resolve con ict by dis nguishing between regula ons of commerce and regula ons under states police power Police Power -- power retained by each state to pass laws that protect the health, safety and fairness of its ci zens (includes state criminal laws, building codes, zoning laws, sanita on standards, regula on of the prac ce of medicine) If the purpose of the state law is to regulate interstate commerce or to discriminate against it, the law