The Role of the United States Constitution and the United States Legal System in Business Regulation

Topics: United States Constitution, United States, Tort Pages: 5 (1611 words) Published: December 16, 2011
This paper will describe the role of the United States Constitution and the United States legal system in business regulation.   The recent business regulations in US businesses will be outlined and further explanation on how the economic growth created by private business and how the US government could not sustain itself. This paper will examine an example from an article which demonstrates how a Constitutional right affects a business and how the legal system is used with respect to recognizing or protecting that right.

The US government has regulated businesses since the colonial times.   The fight for independence in the United States made the need for more responsive and effective business regulations.   In the nineteenth century, the US grew to be a world power and the economy became more industrialized.   Business laws were passed by the federal government that favored social reforms and not towards the big businesses.   Less regulation for business and the public was introduced in the twentieth century and had expanded until the 1970s.   Deregulation on the state of California’s economy and several corporate accounting scandals surfaced in the twenty first century raised federal interventions into business practices.   Under the Articles of Confederation, central government was created.   These articles lacked certain regulations between the states and did not enforced contractual obligations.   Because of these flaws, the US Constitution created the current form of moderate federal system of protection and ended state tariff regulation.   Several years later, the federal government guaranteed protection of the due process of law against national currency, security for contracts, and making gifts of land.   Enforcing the contracts and property rights are regulated by the government and are the basics that US business could not function without them.   The US government could not sustain by itself without the economic growth created by private business.

Deep concerns with the potential political concerns over the credit card interest rates by the White House and Congress have grown for many Americans.   Based on the economic conditions are weak in industries and the overall general US economy.   Both organizations assume their powers and responsibility in protection the consumer can lower credit card rates and increase regulations. Congress’ role was defined the movement of goods between states and abandoned ever since 1937 with Supreme Court on the Commerce Clause in the Constitution.   Several issues on regulations of credit cards by the Federal Reserve Board are being addressed in this article.   In 2010, they will be responsible in making the decisions and regulating limiting credit rate increase.   In the past Congress was out of the constitutional boundaries to regulate local and state matters on credit care rates and now the Federal Reserve will be empowered to do so.   The concerns on how the Constitution can be overlooked and where is the constitutional authority is derived from is becoming an every day topic of discussion.   The US government was created under the Constitution and it specifically stated on limited powers and specific details for the federal government and Congress.   And it’s unfortunate that it will no longer be respected as it as been for the past 150 years in our nation’s history.   On a state level, credit card regulations will be beneficial for them.   It is clearly and definitively a decision to be discussed by the states only if the regulation is needed.   The responsibility of the states can be closed off, powerful and independent.   More federal regulations, interventions and control on finances are becoming a common practice on a day to day basis.   The prediction is the Federal Reserve will gain more regulatory power over the US financial industry in order to protect the consumer.   In the 10th Amendment states that bringing issues not given to the federal government back...
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