CHAPTER 5: CONSTITUTIONAL AUTHORITY TO REGULATE BUSINESS

I. QUESTION FOR A STUDENT: In your own words WHAT DOES THIS MEAN? "The United States
Constitution is the supreme law in this country. Neither Congress nor any state may pass a law that conflicts with
the Constitution."

II. Goals for the Chapter. In this chapter we will look at the structure, power and limitations of government power.

III. Federalism. The United States has a federalist system. That is, the national government and the government of
each of the states coexist.

A. The fundamental attribute of federal power is that the federal government can only assert those powers
specifically granted by the U.S. Constitution.

B. Comparison with the State Power. The power of the state on the other hand are more of a "general
police" power because the states have the power to protect the health, safety or general welfare of state
residences.

1. An action by the state government is valid under federal law unless it violates some specific
limitation imposed by the U.S. Constitution.

IV. Separation of Powers. The federal government is divided into three branches of government. The executive
branch enforces the laws; the legislative branch makes the law and the judicial branch interprets the laws.

A. Each Branch of Government has Separate Power. Each branch of government has separate power
granted to it by the Constitution.

B. System of Checks and Balances. A system of checks and balances is also an important part of the
Constitution because it keeps any one branch of government from accumulating too much power.

1. Example. The text provides several examples. Congress has the power over spending and
commerce, but the president can veto that legislation.

2. Example. The executive branch is responsible for foreign affairs, but treatises with foreign
governments require the advice and consent of the Senate.

V. Commerce Clause.

A. Article I, Section 8 of the United States Constitution grants Congress the power to "regulate Commerce
with foreign Nations, and among the several States, and with the Indian tribes."

1. Mr.???, based on your readings, what does this mean.

B. This is probably the most power clause in the Constitution. It is very powerful because it is so far
reaching. ALMOST EVERYTHING INVOLVES COMMERCE, THEREFORE THIS IS
ALWAYS A FALL BACK CLAUSE.

1. The Supreme Court has ruled that Congress can regulate every commercial enterprise in the US.
This includes the regulation of commercial activity between states and within one particular
state.

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