Chapter 4
III. Key Question Checklist
Is this business activity one that is specifically addressed in the U.S. Constitution?
What general direction of control may be taken by the appropriate government entity?
Are there checks and balances or power sharing?
What are a business’s courses of action if it chooses to resist the governmental action
taken against it?
Do any constitutional rights apply?
IV. Text Materials
The key objective of this chapter is to introduce students to the role of the U.S. Constitution and
its pivotal role in the ultimate distribution of powers between the federal government and the
Constitution of the United States of America
In 1778, the Continental Congress formed a federal government, adopting the Articles of
Confederation. The Constitutional Convention in 1787 agreed to a U.S. Constitution, which was
Federalism and Delegated Powers – The U.S. operates in federalism, which means power is
Doctrine of Separation of Powers – Articles 1, 2, and 3 establish the legislative, executive, and
Checks and Balances – A system of checks and balances are built into the Constitution,
Supremacy Clause
The Supremacy Clause establishes that the federal Constitution, treaties, laws, and regulations are
the supreme law in the U.S., and take precedence over state and local law. This concept of federal
Congress can expressly provide that federal statutes will exclusively regulate an activity or area,
Case 4.1 Supremacy Clause: Mutual Pharmaceutical Company, Inc. v. Bartlett
133 S.Ct. 2466, 2013 U.S. Lexis 4702 (2013), Supreme Court of the United States