Role of the United States Constitution and Business Regulation

Essay by angelz2uCollege, UndergraduateA, November 2009

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University of PhoenixThe role of the United States Constitution in business falls under Article I, Clause 3, Commerce Power, Power to Regulate Commerce. The role will be discussed in this paper along with a current example from today's world. The example will show how Constitutional rights can affect business and how our legal system will be used to protect those rights.

The Commerce ClauseCongress has the sole power to govern commerce or business between states, internationally and with tribes. This power is titled the commerce clause. This clause has had the most impact on business than any other law or clause in the Constitution. The clause was created and entrusted to the federal government to ascertain that the movement of goods from state to state was standardized in the rules. For many years the commerce clause only applied amongst the states and not within the states. In 1824, in the case of Gibbons v.

Odgen, "the Supreme Court held that commerce within the states could also be regulated by the federal government as long as the commerce concerned more than one state." (Corley, Reed, Shedd & Morehead, 2003). In other words, the federal commerce clause overruled any state laws. This was a major step for business and the government and laid the groundwork for many laws and rules that are still in effect today. In today's world, the boundaries of the interstate and intrastate commerce are now dually regulated by state and federal government.

The Tobacco CompaniesIn July of 2004, a federal appeals court overturned a previous verdict that the United States cigarette companies were involved in price fixing as the wholesalers alleged. Price fixing is two or more competing companies agreeing to sell the same product for the same price. The results of price fixing are high prices for...