Week 1 Learning Assignment

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Management

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Apr 3, 2024

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Week 1 Learning Assignment Casey Repsher BMGT 380: Business Law Professor 19March2024

1. Analyze and explain whether the Delaware restriction on the sale of Shine-It violates the Interstate Commerce Clause. The ban that Delaware placed on Clean’s Shine-It surface cleaner did not violate the Interstate Commerce Clause. According to Article I, Section 8 of the U.S. Constitution, articles intended for interstate commerce is a matter of local regulation (Saylor Academy, 2012, Chapter 4.2). Delaware was able to make such a ban because the product was proven to be toxic to humans. Congress can make the argument that because the surface cleaner is an “impure drug”, in which they have the right to ban the product in order to maintain public safety (Saylor Academy, 2012, Chapter 4.2). However, Clean still has the ability to sell their product in other states. Delaware’s ban only extends locally, to their own state. Each state has their own right to protect their people, as long as they are following the Constitution. 2. Analyze whether the doctrine of "police powers" derived from the 10th Amendment of the U.S. Constitution applies to the Delaware law that banned the disinfectant. The doctrine would apply to Delaware’s ban on Clean’s Shine-It surface cleaner. Police powers give states rights and powers that include the protection of welfare, safety, and health of the public (USLegal.com, n.d.). States share jurisdiction with the federal government, and courts enforce the stricter law (Public Health Law, n.d.). Therefore, even though the federal government has not banned similar products, the state can impose the stricter law, exercised within their police powers. In similar instances, governments have restricted the sale of liquor and gambling, so banning the sale of a specific product is definitely something the state of Delaware is able to do.

3. Discuss why it is essential for businesses to understand the impact of the Interstate Commerce Clause and state police powers. It is essential for businesses to understand the impact of the Interstate Commerce Clause and state police powers for both situational awareness and to protect their business from unneeded stress. Even if a product is not federally banned, individual states have the right to ban products within their borders, which can pose a significant threat to companies who are not vigilant in their legal understandings. For example, if New York has banned the sale of coffee grounds, coffee companies would need to know this so they avoid breaking the law and selling coffee despite the ban. If the companies continue to sell the coffee grounds within New York, they could be sued or fined, which could potentially ruin the business. Additionally, if businesses know about any bans, they can investigate and see if they are constitutional or they can change what they need to about their product so they can be compliant with the ban. Overall, it is just a good idea to have situation awareness regarding the laws of the states a business is operating or selling within.

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References Public Health Law (n.d.). The Police Power. https://biotech.law.lsu.edu/map/ThePolicePower.html Saylor Academy (2012). Governement Regulation and the Legal Environment of Business. https://saylordotorg.github.io/text_government-regulation-and-the-legal-environment-of- business/s07-constitutional-law-and-us-comm.html USLegal.com (n.d.). Police Powers Law and Legal Definition. https://definitions.uslegal.com/p/police-powers/

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