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Comprehensive Volume, 18th Edition
Chapter 4: The Constitution as the
Foundation of the Legal Environment
The U.S. Constitution
Chapter
4
The U.S. Constitution created the
structure of our national government
and gave it certain powers.
It also placed limitations on those
powers.
It created a federal system with a
tripartite (3-part) division of
government and a bicameral (2-house)
national legislature.
Federal Government
JUDICIAL
BRANCH
Courts
EXECUTIVE
BRANCH
President
LEGISLATIVE BRANCH
Bicameral Congress
Senate
Chapter
4
House of
Representatives
ADMINISTRATIVE
AGENCIES
(Created by the executive or legislative
branches to carry out a specific function.)
Delegation of Powers
Some governmental powers are
possessed exclusively by the national
government, while other powers are
shared by both the states and the federal
government.
In areas of conflict federal law is
supreme.
Chapter
4
Delegation of Powers
We, the People
give power to…
The states, who
ratified the…
Chapter
4
U.S. Constitution, which reserves some powers
for the States, delegates some powers to the
Federal government, and allows some powers
to be shared, or exercised by both.
Federal Government
State Government
Powers that Affect Business
The powers of the federal government that
most affect business are the power to:
regulate commerce
tax
borrow, spend, and coin money
own and operate businesses
Among the limitations on government that are
most important to business are the
requirements of:
Chapter
4
due process
equal protection of the law
Interpreting the Constitution
The U.S. Constitution is not a detailed
document. It takes its meaning from the way
it is interpreted.
In the bedrock view, the purpose of a constitution
is to state certain set principles.
In the living-document view, a constitution states
goals and is intended to change with time.
Chapter
4
In recent years the use of the living-document
interpretation has expanded the powers of the
federal government.
Amending the U.S. Constitution
The Constitution has been amended, or changed in three ways:
*Formal
Amendment Only 27 formal
amendments to the
Constitution have
been completed,
though thousands
have been
proposed.
Chapter
4
Judicial
Interpretation –
The U.S. Supreme Court
has been called upon to
apply the Constitution to
many new situations,
unforeseen to the
document’s original writers.
Practice –
In a few cases, the
actions of
government have
established accepted
practices which
depart from the
requirements of the
Constitution.
*Article V of the U.S. Constitution specifies the
procedure for adopting amendments.