Chapter 5: Business and the Constitution
After the revolutionary war, the Articles of Confederation was created where it stated
how the U.S. was to be govern. States were given much more power than the national
government. As soon as commerce issues arose within states, a national convention was held.
The purpose of this convention was to try and solve the issue of power. This allowed the U.S.
Constitution to immerge in 1789 and forcing the states to share sovereignty power with the
national government. The states powers were diminished only to regulate affairs within their
borders and were given police powers. Police powers give the states the right to protect and
promote public order, health, safety, morals, and general welfare.
The relation among the states were composed by the privileges and immunities clause
and the full faith and credit clause. The privileges and immunities clause allows a citizen at one
state to be treated equally with the same rights when visiting or doing business at another state.
The full faith and credit clause applies to civil matters were deeds, wills, contracts are taken
notice by other states such as a validating a same sex marriage at another state if the couple
decides to move.
The Constitution also created the separation of powers by creating three branches of
government to impede the national government from obtaining large amount of power. These
three divisions were the legislative branch (make the laws), the executive branch (enforces the
laws), and the judicial branch (interprets the laws). These three branches all work separate and
their power is limited by the system of checks and balances. Checks and balances limit the action
