Role of the United States Constitution
In response to the need for more responsive and effective business regulations the fight for independence began which was partially responsible for the establishment of the federal government. Federal business regulations serve the primary purpose of protecting the business and its consumers. The United States Constitution was written to provide the framework for federal government and is the supreme law of the land. The Constitution is a living document which changes as the country evolves. The Constitution not only protects the rights and privileges of the citizens of the United States, but it also protects businesses and sets an economic foundation. The Constitution overrides all other laws of the land and thus regulations based on Constitutional amendments can be enforced with supreme authority. (Cheeseman, 2007)
Without regulations there would be no way to control businesses. Today’s scandals with big businesses are examples of how constitutional law exerts authority over the business environment. Economic fallout involving banks and other financial institutions puts the economy at risk and the Government has felt compelled to provide economic redress to mend the current situation. The ethical responsibility of businesses to work with and within the limits of the laws set forth by the constitution has been put in question with recent scandals as with AIG and other large banking institutions that recklessly it seems, provided loans to consumers and businesses alike that were incapable of being substantiated. International Law comes into play when large corporations doing business internationally compromise the interest of consumers by breaking the international trade laws and undermining the authority of the Commerce Clause and other regulations set forth with the intention of controlling the interests of both the business and the consumer.
Recent banking systems consolidating and closing has further eroded...