Government Regulation of Business
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Bus215POWERPOINTCh1.pptSOURCES OF LAW
Federal Government
State Government
Local Government
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STRUCTURE OF GOVERNMENT
Executive
Legislative
Judicial
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Administrative Agencies
Created by enabling legislation to implement administer certain other legislation. Can be created at all levels of government. May also have the same three tier structure.
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PRIMARY SOURCES OF LAW
Constitutional Law – Federal & State
Federal & State Legislation – US Code, Illinois Compiled Statutes, Ordinances
Judicial – Case Law
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JUDICIAL LAW
Common Law – Rules of law developed by practice of judges following what other judges had done in cases with same or similar circumstances.
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DOCTRINE OF STARE DECISIS
Once a principle of law has been established by a court, this judicial doctrine requires that court and all lower courts to follow that principle of law in all cases with the same or similar fact pattern.
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STRUCTURE OF COURTS
Supreme Court
Appellate Courts
Trial Courts
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REMEDIES
The ability of a court to fashion a remedy is limited to the following.
Remedy at law – Money Damages.
Equitable Remedy – Generally is an order to do or refrain from doing an act.
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SOURCES AND HIERARCHY
OF LAW
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SOURCES
OF LAW
US Constitution
State Constitutions
US Congress
State Legislatures
Federal and State Administrative Agencies
Municipal & Local Units of Government
Common Law (Judicial Interpretation of Law)
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HIERARCHY OF LAW
ARTICLE VI OF THE US CONSTITUTION
SUPREMACY CLAUSE
“The Constitution, and the Law of the United States……. shall be the supreme Law of the Land;”
Federal law including federal administration agency regulations and opinions of federal courts take precedence over state constitutions, state & local law and opinions of state and local courts.
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HIERARCHY OF LAW
Federal Law may then preempt state and local law. However, a state may supplement federal law as long as state law does not undermine existing federal law. Also, a state may regulate an area of law where no federal law exists.
EXCEPTION: ANY STATE REGULATION THAT AFFECTS INTERSTATE COMMERCE IS VOID.
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HIERARCHY OF LAW
Article I, Section 8 of the United States Constitution expressly delegates to the US Congress the power to regulate interstate commerce. Thus, any state law which substantially affects interstate commerce is invalid.
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Criminal Law
Criminal law involves wrongs committed by individuals and entities against society as a whole. Generally, a government entity brings the action. Crimes are punishable by fines and or imprisonment. Standard of Proof = Guilty beyond a reasonable doubt.
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Civil Law
Civil law involves rights and duties owed by individuals and entities to each other and their government. Standard of Proof = Evidence must show that a fact is more probably true than not true.
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Bill of Rights
The Bill of Rights refers to the first ten amendments to the US Constitution. Adopted In 1791 after the passage of the original Constitution. Limits powers and actions of state and federal government. Does not prohibit actions of individuals or entities.
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First Amendment
Guarantees freedom of religion, speech, press, assembly & petition. Applies to corporations and other entities. Thus, corporations & unions have a First amendment right to engage in political activities, including the funding of political campaigns and direct and indirect advocacy of candidates and issues. Note that commercial speech can be more tightly regulated than political speech.
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Due Process
Substantive Due Process focuses on whether legislation or government action infringes or limits a fundamental right.
Procedural Due Process focuses on whether government action or decision takes life, liberty or property fairly. Has action or decision been done fairly with notice and impartial hearing?
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State Police powers
Police powers are generally reserved to the States. Term refers not only to criminal matters but also to a state’s ability to protect and regulate the health, safety, welfare, education and morals of its citizens.
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