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Bus 404 Midterm 2
Terms in this set (36)
Power of Congress
U.S. Constitution Article I provides for the power of Congress
Section 8 includes the Commerce Clause and the Taxation Clause
Constitution gives Conress power to "regulate commerce with foreign nations, and among the several states, and with the Indian tribes.
(Arguably the greatest impact on business than any other Constitutional provision.)
In the Constitution "commerce among the states" meant all business dealings that substantially affected more than one state.
U.S. Congress had exclusive power to regulate interstate commerce
10th Amendment and State's Police Power
Dormant Commerce Clause
States do not have authority to regulate interstate commerce. When state regulations impinge on interstate commerce, the state's interest in the merits and purposes of the regulation must be balanced against the burden placed on interstate commerce.
Wickard v. Filburn
Commerce clause has expansive power
Purely local production, sale and consumption of when was subject to federal regulation.
Hearts of Atlanta Motel v. U.S.C
Civil rights legislation upheld as a valid act of Congress under the Commerce Clause
Granholm v. Heald
States cannot engage in economic discrimination by forbidding the shipment of out-of-state wines into their state where in-state shipments are permitted.
Commerce Clause Today
Supreme court has curbed Federal regulatory powers by narrowly defining "substantial effect"
Affordable Care Act Cases
5-4 decision to uphold the individual mandate to purchase health insurance
Rejected the authority of Congress under Commerce Clause
Upheld under the Taxation Clause
Law and the Market
A reliable legal system has a crucial role of fostering and maintaining capitalism
Objectives of the Law
Maintain order, resolve conflict, preserve dominant values, protect freedom
Sources of Law
Constitution - supreme expressions of law at federal and state levels
Statues - Laws that are adopted by Congress and state legislative bodies
Regulations - administrative agencies
Corporate view of litigation
A source of expense and great frustration
In some instances, multiple plaintiffs may join together to represent themselves and all other similarly affected to file a single lawsuit alleging similar harm arising from the same or substantially same, wrong.
Existing measures to curb unreasonable lawsuits
Contingency fees, vexatious litigants, sanctions and motion to dismiss/summary judgment etc.
Opposing views of tort system
Deter inovation or deter corporate irresponsibility?
Promote frivolous lawsuits or protect the safety of the public?
Provide appropriate compensation for injuries or bankrupt business?
Caps on damages
Limit filing certain types of cases
Federal Arbitration Act
Corporations as defendants
Arbitration, federal law preemption, case dismissals, punitive damages, employment cases
Current supreme court seems hostile toward
Attorney motivated cases
litigation as regulation
At Will Employment
Presumed; "An employment having no specified term, may be terminated at the will of either party on notice to the other. Employment for a specified term means an employment for a period greater than one month"
Statutory Limitations on At Will Terminations
Collective Bargaining (union)
Filing complaints (Labor commissioner, workers comp, safety violations, whistleblowers)
Exercising right to take time off
Wrongful termination in violation of public policy
"an employer may not discharge an at will employee for a reason that violates fundamental public policy"
Refusing to sign cov. not to compete
refuse invasion of privacy
Discharge to avoid paying wages due
Misappropriation of public funds
Disclosing improper practices
Testifying at a hearing
Equal pay claim
Health and safety complaints
Disclosure of antitrust activities
Breach of contract
Agreement states a specific term. Party can agree to limit employers' termination rights:
Willful breach of duty by employee
Habitual neglect of duty
Continued incapacity to perform duties
Terms of contract
are manifested by conduct over time during the employment. however, the implied right restricted by recent decisions.
Color National origin
Physical or mental disability
Age (over 40)
Failure to hire
Refusal to select for training
Discharge from employment
Discrimination in compensation or terms, conditions or privileges of employment
Quid Pro Quo
Hostile work environment
Action impacts work conditions or benefits
Wage and Hour Law
History of Corporate Personhood
Santa Clara County v. Southern Pacific Railroad, Decision implies the 14th amendment equal protection clause applies to corporations
Lochner v. New York
State statue which limited working hours for bakers to 10 hours a day/60 hours a week held unconstitutional. Court held the law violated the right to liberty under the 14th amendment due process clause because it interfered with the freedom to contract
West Cost Hotel Co. v. Parrish
State minimum wage law upheld. The court found a violation of the due process clause (5th and 14th amendments) does not involve the freedom to contract.
Corporate Constitutional Rights
1st amendment will not permit laws restricted speech based on its content
"Takings" and due process
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