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The Legal Environment of Business ch 5, 6

State police powers only authorize state police forces.
Rights established under deeds, wills, and contracts in one state must be honored by other states.
Article 1, Section 8, of the U.S. Constitution impacts business greatly and is referred to as the
Commerce clause
State laws that allow the use of medical marijuana insulate users in those states from federal prosecution.
When there is a direct conflict between a federal and a state law, the state law is rendered invalid.
What type of powers do the states have to regulate or prohibit private activities?
police powers
Whenever the language in the Bill of Rights describing a right is overly broad or unclear in a particular situation, what does NOT occur:
The individual state legislatures interpret the unclear language.
Symbolic speech is NOT covered by the Bill of Rights.
The compelling government interest test is used by the courts to determine whether a law regulating the content of speech will be permissible.
The ___________ protects the “right of the people to be secure in their persons, houses, papers, and affects.”
Fourth Amendment
Your state passes a law prohibiting businesses from supporting political candidates. You go to court and challenge the law’s constitutionality. Will the law be upheld?
No, because the law is an unconstitutional restriction of free speech.
Provisions of the Fifth and Fourteenth Amendments guarantee that no person shall be deprived of life, liberty, or property without due process of law and this clause applies to all “legal persons,” including:
individuals and corporations.
A law that provides unemployment benefits only to people over six feet tall will pass the rational basis test?
Federal administrative agencies are created:
by enabling legislation passed by Congress.
When regulated groups oppose a rule adopted by an agency, they can bring a lawsuit arguing that the rule was not authorized by the enabling statute.
All cabinet departments of the executive branch are included in independent regulatory agencies.
The main difference between independent regulatory agencies and executive agencies is that:
executive agencies are subject to the authority of the president to a greater degree than are independent regulatory agencies.
The law that specifies the procedural requirements that all federal agencies must follow in their rulemaking, adjudication, and other functions is the:
Administrative Procedure Act.
The major function of today’s federal agencies is adjudication.
If an agency failed to follow proper rulemaking procedures when it issued the final rule, the rule may not be binding.

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