Glossary of Business Law Ch. 5

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federal form of government
the states form a union and sovereign power is divided between a central authority and the states (United States)
What do the three branches of government do?
Legislative: makes the laws
Executive: enforces the laws
Judicial: interprets the laws
The Commerce Clause
Gives Congress the power to regulate interstate commerce
interstate commerce
commerce among the states, crossing state lines (Congress can regulate)
Gibbons vs. Ogden
Steamboat monopoly being interstate commerce
intrastate commerce
commerce within a state (Congress cannot regulate)
Wickard vs Spilburn
Grain growing farmer. Ruled that Congress can regulate intrastate commerce that affects interstate commerce
police powers
Possessed by states as part of their inherent sovereignty. Protect and promote the public order, health, safety, ect. as well as criminal law enforcement
"dormant" commerce clause
Government as exclusive right to regulate interstate commerce and states cannot to such
Supremacy Clause
The constitution, laws an treaties of the U.S. are the supreme law of the land
When feder and state laws are in direct conflict...
The state laws are rendered invalid
Federal laws take precedence over conflicting state or local laws
taxing power
Congress can levy taxes. Valid revenue-raising measure.
Congress cannot tax some states and exempt others
spending power
Congress can spend the money it raises on any objective so long as it does not violate the Bill of Rights.
rational-basis scrutiny
In matter of economic or social welfare, the classification will be considered valid if there is any conceivable rational basis on which it might relate to any legitimate government interest (street vendors blocking traffic)
strict scrutiny
A law that inhibits some persons’ exercise of a fundamental right or a classification based on a suspect trait (race, gender). The law will only be allowed to stand only if it is necessary to promote a compelling government interest (Black construction projects)
intermediate scrutiny
Laws using classifications based on gender or legitimacy must be substantially related to important government objectives (Statutory rape cases)
defamatory speech
Speech that harms the good reputation of another. Libel- written; Slander- oral
Lewd and Obscene Speech
Child pornography, pornography in the work place is not protected by the Constitution
Equal Protection Clause
No state will deny to any person within its jurisdiction the equal protection of the law
What form of government was established in the U.S. immediately after the Revolutionary War?
Confederal form
What did the case of Wickard v. Filburn establish?
Congress can regulate intrastate commerce if it directly affects interstate commerce
Is there a constitutional right of privacy? If so, where is it found?
There is no specific guarantee of this right but it is implied in the 1st, 3rd, 4th, 5th and 9th Amendments
Establishment Clause
Prohibits Congress from creating any law concerning the establishment of religion
Free Exercise Clause
Prohibits Congress from making any law prohibiting the practice of any religion

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