University:
Indiana University Bloomington
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

184

Pages:

2
Author:

bratrochanter

1. Government Action Requirement: Constitutional rights, like freedom of speech and equal protection, primarily protect against actions by government entities, not private individuals or companies. Courts distinguish between governmental and private behavior to determine if a constitutional right has been violated. For instance, in Marsh v. Alabama (1946) and Shelley v. Kraemer (1948), the Supreme Court ruled that certain private actions were effectively government actions due to public functions or significant government involvement. 2. Incorporation Doctrine: The doctrine of incorporation applies most protections in the Bill of Rights, initially limiting only federal power, to state governments as well through the Fourteenth Amendment’s Due Process Clause. This means that First Amendment protections against government censorship now extend to actions by state and local governments as well as federal authorities. 3. Judicial Scrutiny Levels: o Rational Basis Test: A lenient test, which requires that government action only needs a reasonable connection to a legitimate purpose. o Intermediate Scrutiny: Used, for example, in sex discrimination cases, requiring that the government action must serve an important purpose and be substantially related to achieving that purpose. o Strict Scrutiny: The most stringent test, applied when fundamental rights or suspect classifications like race are involved. Government actions must be necessary to achieve a compelling purpose and are often invalidated under this test. 4. First Amendment Protection for Businesses: o Political and Noncommercial Speech: Speech about political or noncommercial topics is at the “core” of the First Amendment and is thus fully protected. This includes political commentary or expression on societal issues, which businesses and individuals can both engage in. o Corporate Speech Rights: Corporations have similar First Amendment rights as individuals. In Citizens United v. FEC (2010), the Court ruled that corporations could use funds for political speech, including election-related advocacy, as it qualified as political speech entitled to full protection. o Commercial Speech: Unlike political speech, commercial speech (advertising, for instance) receives a lower level of protection. While it is protected, the government can restrict it more easily, especially if it is misleading or harmful. 5. The Citizens United Decision: This landmark case extended First Amendment protections to corporate political spending, affirming that corporations could fund “electioneering communications” and advocate on issues close to elections. The Court argued this restriction was a violation of free speech, highlighting that political speech from corporations, even when financially motivated, holds the same protection as individual political expression. These legal doctrines illustrate the Constitution’s application to business regulations, especially regarding government involvement, state and corporate responsibilities, and the protection of speech rights in the commercial and political arenas.