An introduction to the fundamentals of dynamic business law and business ethics chap004

The Supremacy Clause Article V of the United States Constitution • Provides that federal law is the “supreme law” of the United States • Any state or local law that directly conflicts

Chapter 4

Constitutional Law

Chapter 4 Case Hypothetical

Prosecutor Alicia Jones was cautiously optimistic that victory was hers She had just tried the defendant Donovan Howell, Jr for first-degree murder of Donovan Howell, Sr., a wealthy construction company owner from Charleston, South Carolina Any

prosecutor would have been pleased with the evidence Prosecutor Jones had introduced to the Charleston County jury Although there was no eyewitness to the elder Howell’s murder, there was an abundance of circumstantial evidence, including three (3)

witnesses who had observed the younger Howell board the yacht of his father at 1:00 a.m on Sunday, June 27 (Donovan Howell, Sr.’s body was found on board his yacht later that same morning), a knife next to the elder Howell’s body with his son’s

fingerprints on it, and Donovan Howell, Jr.’s confession to Charleston County police on Friday, July 2 In light of all of the

circumstantial evidence against his client, defense attorney Edward York had taken the risk of putting his client on the witness

stand The young Howell responded reasonably well to both direct examination and to Prosecutor Jones’ cross-examination

After five (5) full days of deliberation, the jury announced to the court that it was hopelessly deadlocked, and could not reach a

verdict After inquiring whether there was any possibility that further jury deliberation would resolve the impasse, and after the

foreperson’s response of “Most definitely not, your honor,” Judge Gregory Williams officially declared a mistrial Prosecutor

Jones knew there was no way to predict what a jury would do, and she had tried to condition herself with this reality of trial

practice, but she was nevertheless shocked by this jury’s inability to reach a verdict in light of all of the evidence she believed

proved Donovan Howell, Jr.’s guilt beyond reasonable doubt

After Judge Williams’ declaration of mistrial, Prosecutor Jones immediately polled the jury She discovered that ten (10) jurors

were in favor of the defendant’s conviction, with the remaining two (2) jurors opposed to conviction Those two (2) jurors,

Amanda Yates and Carla Yoder, explained why they voted against conviction Ms Yates, a twenty-eight year-old unmarried

waitress with a three-year-old son, explained to Prosecutor Jones that there was no way Donovan Howell, Jr could have

committed murder Said Ms Yates, “He just seems like such a polite and well-mannered young man…There is just no way he

killed his father.” Ms Yoder, a sixty-eight-year-old retiree, had different reasons for her belief that defendant Howell was

innocent Ms Yoder stated “Just because he was on his father’s boat doesn’t mean he killed his father I believe the young man was framed I believe the knife was planted on the boat, and I believe the police coerced his confession.”

Chapter 4 Case Hypothetical

The annual Smallville Fair is the community event of the year Attendance is always high, with community

members going to enjoy the thrill rides, the exhibits, and the food, as well as to “see and be seen.” Principal

Cuthbert of Smallville High School is there, and as he turns the corner (around the “Guess Your Age or

Weight” exhibit,) he is shocked by what he sees In front of the “Bearded Lady” exhibit is the star Smallville

High School quarterback, senior Coy Gunner Gunner is wearing a green “tee-shirt” depicting a Christ-like

figure smoking a marijuana cigarette; in large yellow letters on the front of the shirt are the words “Joints For

Jesus.” On the back of the shirt (again, in large yellow letters) is the following: “WWJS: What Would Jesus

Smoke?!”

Principal Cuthbert immediately confronts Gunner, exclaiming “Coy Gunner, I cannot believe you would wear

such a disgusting shirt You have offended my Christian principles and beliefs, as well as the religious beliefs

of countless numbers of Smallville citizens attending this fair Further, you have disgraced Smallville High

School As the star quarterback of our football team, you of all people should know that you are a role model

for your fellow students, as well as younger kids in the community I will see you in my office Monday morning

at 7:30 a.m.”

Gunner arrives at Principal Cuthbert’s office on Monday morning to discover that Principle Cuthbert has

decided to suspend him for ten school days Gunner objects, saying “I remember in civics class that Mr

Campbell told us we have the right to free speech I object to the suspension, and if you don’t change your

mind, Principle Cuthbert, my dad knows a good attorney who might want to speak with you.”

Is the message on Gunner’s shirt constitutionally-protected free speech? Would rational limitations on free

The United States Constitution

• Establishes a “federalist” system of

government (with authority divided between the federal and state

governments)

• Allocates power among the three

federal branches of government (legislative, executive, and judicial)

• Establishes a system of “checks and

balances”

Figure 4-1: The System of Checks and Balances

Legislative Branch (U.S Congress)

• Can refuse to ratify treaties

• Can impeach and remove

president

On Judicial Branch:

• Can pass amendments to overrule judicial rulings

• Can impeach judges

• Establishes lower courts and sets number of judges

Figure 4-1: The System of Checks and Balances

Executive Branch (U.S President)

• Appoints federal judges

• Can pardon federal offenders

Exhibit 4-1: The System of Checks and Balances

Judicial Branch (U.S Federal Court System)

The Supremacy Clause (Article V of

the United States Constitution)

• Provides that federal law is the

“supreme law” of the United States

• Any state or local law that directly

conflicts with federal law is void

The Commerce Clause (Article I, Section

8 of the United States Constitution)

• The primary source of authority for federal

regulation of business

• States that the U.S Congress has the

power to “regulate Commerce with foreign Nations, and among the several States…”

• Simultaneously empowers the federal

government and restricts the power of state governments

Taxing and Spending Powers of the Federal

Government (Article I, Section 8 of the United

States Constitution)

• Provides the power to “lay and collect

Taxes, Duties, Imports and Excises.”

• Taxes imposed by Congress must be

uniform across the states

• The federal government can use tax

revenues to provide essential services,

encourage development of certain

industries, discourage development of

other industries

• Regulatory impact of tax does not affect its

constitutionality

Other Constitutional Restrictions on

Government

• Privileges and Immunities Clause

• Full Faith and Credit Clause

• Contract Clause

Exhibit 4-1: Summary of the Bill of

Rights: The First Amendment

• Protects freedom of religion, press,

speech, and peaceable assembly

• Ensures that citizens have the right

to ask the government to redress

grievances

Exhibit 4-1: Summary of the Bill of

Rights: The Second Amendment

Finds that in light of the need for a

well-regulated militia for security,

government cannot infringe on citizens’

right to bear arms

Exhibit 4-1: Summary of the Bill of

Rights: The Third Amendment

Provides that government cannot

house soldiers in private residences

during peacetime, or during war,

except for provisions in the law

Exhibit 4-1: Summary of the Bill of

Rights: The Fourth Amendment

• Protects citizens from unreasonable

search and seizure

• Ensures that government issues

warrants only with “probable cause”

Exhibit 4-1: Summary of the Bill of

Rights: The Fifth Amendment

• Ensures that government does not put citizens

on trial except upon indictment by a grand jury

• Gives citizens the right not to testify against

themselves (privilege against self-incrimination)

• Prevents government from trying citizens twice

for the same crime (double jeopardy)

• Creates the right to due process

• Provides that government cannot take private

property for public use without just

compensation

Exhibit 4-1: Summary of the Bill of

Rights: The Sixth Amendment

• Provides the right to a speedy public

trial with an impartial jury

• Provides the right to know what criminal

accusations a citizen faces

• Provides the right to have witnesses

both against and for the accused

• Provides the right to an attorney

Exhibit 4-1: Summary of the Bill of

Rights: The Seventh Amendment

States that in common law suits where

the monetary value exceeds $20,

citizens have the right to a jury trial

Exhibit 4-1: Summary of the Bill of

Rights: The Eighth Amendment

• Provides that government will not set

Exhibit 4-1: Summary of the Bill of

Rights: The Ninth Amendment

Provides that although the Bill of Rights

names certain rights, such naming does

not remove other rights retained by

citizens

Exhibit 4-1: Summary of the Bill of

Rights: The Tenth Amendment

Provides that powers that the U.S

Constitution does not give to the

federal government are reserved to the

states

Speech Not Protected By The First

Amendment

• Defamation

• Obscenity

• Fighting Words

U.S Supreme Court Standard of Obscenity

Established In Miller v California

• Would the average person, applying

contemporary community standards, find that the speech appeals to the prurient interest?

• Does the speech depict/describe sexual

conduct in a patently offensive way?

• Does the speech lack serious literary, artistic,

political, or scientific value?

First Amendment Provisions Protecting

Citizens’ Freedom Of Religion

• The Establishment Clause

- Provides that government “shall make

no law respecting an establishment of religion”

• The Free Exercise Clause

- States that government cannot make

a law “prohibiting the free exercise” of religion

U.S Supreme Court Tests For Determining Whether A

Particular Government Statute Violates The

Establishment Clause (As Set Forth In Lemon v

Kurtzman)

• Does the statute have a secular legislative

purpose?

• Does the statute’s principal or primary effect

either advance or inhibit religion?

• Does the statute foster an excessive

government entanglement with religion?

The Fifth Amendment Due Process

Clause

States that government cannot

deprive a person of life, liberty, or

property without due process of law

Types Of Due Process Guaranteed By The

Fifth Amendment Due Process Clause

• Procedural Due Process—Requires

government to use fair procedures when taking life, liberty, or property

• Substantive Due Process—Ensures basic

fairness of laws that may deprive life, liberty, or property

The Fifth Amendment Takings

Clause

Definition: Constitutional guarantee

providing that when government takes

private property for public use, it must

pay the owner just compensation, or

fair market value, for his/her property

The Fourteenth Amendment of the United

States Constitution (the “Equal Protection”

Clause)

• Prevents states from denying “the equal

protection of the laws” to any citizen

• Combats discrimination, since it applies

whenever government treats certain individuals differently than other

“similarly-situated” individuals

Judicial Tests to Determine Violations of the

Fourteenth Amendment

• “Strict Scrutiny” Test: Applies to “suspect

classifications” based on race, national origin, and/or citizenship that would prevent individuals from

exercising a fundamental right (such classification allowed only if necessary to promote a “compelling state interest”)

• “Intermediate Scrutiny” Test: Applies to

classifications based on gender or on the legitimacy

of children (such classification allowed only if it is substantially related to an “important government objective”)

• “Rational Basis” Test: Applies to all other matters