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Class notes BLAW2001 (BLAW2001)

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Hi! I’m a college student sharing organized and easy-to-understand Business Law (BLAW) notes and study materials. My notes cover important concepts, key terms, cases, and topics to help make studying for BLAW exams easier and more manageable. Whether you’re reviewing for an upcoming test or trying to better understand class material, I hope these notes can help you study smarter and feel more prepared!

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Chapter 4

,1.​ The difference between a federation and a confederal form of government
-​ In a confederation the state retains most of the power where in a federation it is shared between
the state and national government.
2.​ What was the Articles of Confederation (AOC)
-​ The first constitution of the USA in effect from 1781-1789.
3.​ What were the major strengths and weaknesses of the U.S. Government
under the “AOC”?
-​ Strengths were that the states had power. Weaknesses were; weak central government, unable
to fund itself, unable to resolve disputes, unable to defend the country, and amendments.
4.​ What is the “Privileges and Immunities Clause” and what does it do?
-​ The "Privileges and Immunities Clause" is a part of the U.S. Constitution, found in Article IV,
Section 2, which essentially guarantees that citizens of one state are entitled to the same
fundamental rights and protections when they are in another state, preventing states from
discriminating against non-residents in favor of their own citizens; it essentially ensures equal
treatment across state lines for basic citizen rights, like the right to travel and access to courts.
5.​ How are 3 main tests used by the Supreme Court (“Strict Scrutiny”,
“Intermediate Scrutiny”, and “Rational-Basis” different from each other,
and how do they apply to the Government?
-​ Strict scrutiny; If a law or action prohibits or inhibits some persons from exercising a
fundamental right, the law or action will be subject to “strict scrutiny” by the courts. A
classification based on a suspect trait—such as race, national origin, or citizenship status—will
also be subject to strict scrutiny. Under this standard, the classification must be necessary to
promote a compelling government interest.
-​ Intermediate Scrutiny; Another standard, that of “intermediate scrutiny,” is applied in cases
involving discrimination based on gender or legitimacy. Laws using these classifications must be
substantially related to important government objectives.
-​ Rational Basis; In matters of economic and social welfare, a classification will be considered
valid if there is any conceivable “rational basis” on which the classification might relate to a
legitimate government interest. It is almost impossible for a law or action to fail the rational basis
test.
6.​ What is the “Full Faith & Credit Clause” and what does it do?
-​ A provision in Article IV, Section 1, of the U.S. Constitution that ensures that rights established
under deeds, wills, contracts, and similar instruments in one state will be honored by other
states and that judicial decisions will be honored and enforced in all states.
7.​ What is the “Commerce Clause” and what does it do?
-​ To prevent states from establishing laws and regulations that would interfere with trade and
commerce among the states, the Constitution explicitly gave the federal government the power
to regulate interstate commerce.
8.​ What is the “Free Exercise Clause” and what does it do?
-​ The free exercise clause guarantees that people can hold any religious beliefs they
want or can have no religious beliefs. The constitutional guarantee of personal
religious freedom restricts only the actions of the government, however, and not those
of individuals or private businesses.
9.​ What is the “Equal Protection Clause” and what does it do?
-​ Under the Fourteenth Amendment, a state may not “deny to any person within its jurisdiction
the equal protection of the laws.” The United States Supreme Court has used the due

, process clause of the Fifth Amendment to make the equal protection clause applicable to the
federal government as well. Equal protection means that the government must treat similarly
situated individuals in a similar manner.
10.​ What is the “Due Process Clause” and what does it do?
-​ The provisions in the Fifth and Fourteenth Amendments that guarantee that no person shall
be deprived of life, liberty, or property without due process of law. State constitutions often
include similar clauses.
11.​ Why is the “Gibbons v. Ogden” case, and why is it important?
-​ "Gibbons v. Ogden" is a landmark Supreme Court case from 1824 that is considered crucial
because it established the federal government's broad power to regulate interstate commerce
under the Commerce Clause of the Constitution, essentially solidifying the idea that federal law
takes precedence over state law when it comes to regulating trade between states, significantly
expanding the reach of Congress's authority over the national economy.
12.​What is the “Supremacy Clause” and what do it do?
-​ The provision in Article VI of the U.S. Constitution that the Constitution, laws, and treaties of the
United States are “the supreme Law of the Land.”
13.​ What is covered in the “1st Amendment”, and who does it apply to?
-​ It is the freedom of speech and the freedom of religion.
14.​ What is covered in the “14th Amendment” and who does it apply to?
-​ Passed in 1868 after the Civil War, the Fourteenth Amendment provides, in part, that “[n]o State
shall, deprive any person of life, liberty, or property, without due process of law.”
15.​ What are the main types of “speech” that are and are not protected by the
1st Amendment?
-​ Obscenity, defamation, incitement, imminent lawless action, fighting words, and true threats.
16.​ What is the difference between “content-neutral” and “content specific”
regulation?
-​ Content-neutral regulation applies to all speech equally, while content-based regulation targets
specific speech. Content-neutral laws are more likely to be upheld by the Supreme Court.


Key terms

Sovereignty

-​ The power of a state to do what is necessary to govern itself. Individual state sovereignty is
determined by the U.S. Constitution.


Police Powers

-​ Powers possessed by the states as part of their inherent sovereignty. These powers may be
exercised to protect or promote the public order, health, safety, morals, and general welfare.




Checks and balances

, -​ The system under which the powers of the federal government are divided among three separate
branches—the executive, legislative, and judicial branches—each of which exercises a check on
the actions of the others.

Governmental interest
-​ Governmental interest is a legal concept that allows the government to regulate activities to
achieve its goals. These goals can include protecting public safety, promoting health, and
preserving order.


Restrictions
-​ limitations or constraints placed on a company's activities, usually defined by contracts,
regulations, or statutes, which can restrict what a business can do, where it can operate, or how it
can conduct its operations; essentially, it's a rule that limits a business's actions in a specific way.

Regulatory Powers
-​ Regulatory powers are the authority of government agencies and regulators to enforce laws and
ensure compliance.Regulators use their powers to respond to non-compliance and to ensure that
individuals and businesses follow legislative requirements.

Threatening Speech
-​ speech that communicates a serious intent to commit an act of violence against the recipient is
no longer protected under the First Amendment.

Obscenity
-​ Obscenity law defines what is considered obscene and sets penalties for violating those laws.
Obscenity is not protected by the First Amendment's right to free speech.


Commercial Speech

-​ Commercial speech is any written or spoken communication that promotes a business's
products or services in order to make a profit. It's a type of economic speech that aims to
persuade consumers to buy something.


Corporate Political Speech

-​ Corporate political speech refers to a company's ability to influence politics through donations,
lobbying, public advocacy, and employee engagement. The Citizens United ruling allows
unlimited corporate spending on independent political ads. Supporters see it as free speech,
while critics argue it gives corporations too much influence over democracy.


Symbolic Speech
-​ Nonverbal expressions of beliefs. Symbolic speech, which includes gestures, movements, and
articles of clothing, is given substantial protection by the courts.

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