Role Of U.S. Constitution

The Constitution is the oldest effective nation constitution. It was created by the Constitutional Convention in Philadelphia, Pennsylvania, and since then has been amended twenty-seven times. The United States Constitution defines the law of the United States government by the established three branches of government; the legislative branch, executive branch and judicial branch. Moreover, the Constitution outlines the power to be exercised by each branch. Overall, the United States Constitution is the universal legal document used throughout the Western world to protect the basic right of the United States citizens. The essential principle of the Constitution is that it establishes the United States’ federal system of government, which must be confined to the rule of law.

Not only does the Constitution protect people, but it protects businesses as well. In this paper, there will be an explanation of the role the United States Constitution and the legal system in relation to business regulations. An example will be provided on how a Constitutional right affects the United States military and how the legal system is used with respect to recognizing and/or protecting that right.

Role of U.S. Constitution in Business Regulation

The need for more responsive and effective business regulation was part of the reason for the fight for independence and the establishment of the federal government. Since then, businesses have been governed and regulated by the federal government. The purpose of business regulations by the federal government is to primarily protect businesses and its consumers.

However, if there was no regulation, businesses would be uncontrollable. For example, Apple and Microsoft, the two biggest names in the computer industry, have control over a larger sector of the market than any other company combined. Because these two corporations control the majority of the market in nearly all of its markets, there is an overwhelming social pressure for regulation. Ungoverned, these two corporations would control nearly all the market, and drive smaller corporations out of business. Instead, regulation exists to preserve competition and the freedom for smaller companies to enter the market. If one company controls the market share, smaller groups will never be able to flourish. Therefore, the federal government has been held responsible for preventing the formation of monopolies and unfair practices of large corporations.

Role of U.S. Legal System in Business Regulation

The United States Constitution established many of the boundaries between federal and state law. It also set forth to separate and control federal power among the executive, legislative, and judicial branches of government, which contributes distinctively to the legal system. Overall, the United States Constitution outlines the realm of laws to be passed by the United States Congress.

Businesses that do not adhere to the regulations of the federal government are dealt with using the United States legal system in civil and criminal means. Without the legal system, businesses could impose any behavior on consumers without considering repercussions. A primary example of the legal system regulating businesses would be the Enron Corporation scandal. As a result of the accounting scandal, thousands of the organization’s employees and investors lost all their savings, children's college funds, and pensions when the company collapsed. The United States legal system addressed this scandal by charging the chief financial officer, Andrew Fastow, with conspiracy, securities fraud, false statement