Ch 15 Flashcards
What 4 areas require analysis under the commerce clause?
1 regulation of foreign commerce
2 regulation of interstate commerce
3 impact on interstate commerce
4 possible limitations of federal regulatory authority
From a historical perspective, what has the commerce clause done 4 things?
1 creates 1 nation w/ means to facilitate business
2 demonstrates growth of fed. Gov’s powers over time
3 restricts regulatory powers of state/local gov
4 places limits of fed. Gov. Regulating business
Commerce clause: regulation of foreign commerce
2) how does this apply to state/local governments?
Fed government has right to regulate, restrict or limit
Foreign commerce
State and local Gov’s may not do this (unless foreign
Commerce is entirely within state boundaries)
Commerce clause: Regulation of interstate commerce
States can’t impede interstate commerce, only the federal
Government can
Police powers
Authority of state and local governments
What 4 items are required to be protected by police powers under state legislation and regulation?
1 public’s health
2 safety
3 morals
4 general welfare
Dormant commerce clause concept
State regulations must not be arbitrary, capricious or
Unreasonable
Dual regulation: federal preemption
When federal statute preempts area of regulation any
State or local law pertaining to subject matter is
unconstitutional + void
Dual regulation: no preemption
Situations where federal regulation of subject matter is
Not comprehensive enough to preempt field
So state regulation is permitted
Irreconcilable conflicts
Exist when it isn’t possible for business to comply with both
Statutes
Undue burdens
Found if burdens clearly exceed local benefits
Undue burdens are disallowed by the commerce clause
Dual regulation: no federal regulation
State regulation of interstate commerce is permissible
When there’s no federal regulation
Providing no discrimination in favor of local business and
No undue burdens
The commerce clause also has been construed as
Prohibiting discrimination…
Against interstate commerce in favor of intrastate commerce
Apportionment formulas
Allocate the tax burden of an interstate business among
States entitled to tax it
Nexus
To justify tax there must be sufficient contact, connection, tie or link between the business and taxing state
Administrative agencies
Boards, bureaus, commissions and organizations that
Make up governmental bureaucracy
2 types of regulatory authority an agency can hold?
1 quasi legislative
2 quasi judicial
Quasi legislative
Agency can issue rules (regulations) that have impact of
Laws
Quasi judicial
Agencies can make decisions like a court
What is regulation often a substitute for?
Competition
What 4 functions do administrative agencies tend to possess?
1 rule making
2 adjudicating
3 advising
4 investigating
Adjudicating
Quasi judicial function involves fact finding and applying the
Law to the facts
Cease and desist order
Agency orders violator to stop (cease) the objectionable
Activity and refrain (desist) from similar violations
Consent order
Requires organization or individual accused to admit
jurisdiction of agency and waive all rights to seek judicial
Review
Advising of agency
Make reports to president or congress
Rule making of agencies
Agencies exercise their quasi legislative power by issuing
Rules and regulations that have the effect of law
Office of general council
Chief law officer and legal adviser
Represents the agency in court and has significant impact
On policy
Administrative law judges
Perform adjudication fact finding functions
Have immunity
Immunity
Protected from liability for damages based on their
decisions
Quasi judicial proceedings: respondent
Business or individual accused of some illegality
Influencing agency decisions
Public hearings are held, where interested parties present
Evidence relating to proposed regulation
Any party seeking judicial review of any administrative agency’s decision must be able to approve what?
Standing to sue
What administrative decisions aren’t subject to judicial review? 2
1 statutes preclude judicial review
2 agency action committed to agency discretion by law
Aggrieved party (plaintiff)
Plaintiff must be harmed by an administrative action or
Decision to have standing
Delegation of quasi legislative authority to administrative agencies is subject to 2 constitutional limitations?
1 must be definite
2 must be limited (authority)
Definiteness (delegation)
Delegation must be set forth with sufficient clarity so all
Concerned can determine extent of agency’s authority
What 2 doctrines guide the courts in the judicial review of agency adjudications?
1 exhaustion of remedies
2 primary jurisdiction
Exhaustion of remedies
When does it apply?
Court created rule that limits when courts can review
Administrative decisions
Applies when claim must go in first instance to an
Administrative agency alone
Primary jurisdiction
Similar to exhaustion of remedies
Applies when claim is originally filed in courts
