BMGT380 - Chapter 3 Exam Questions With
Verified Answers
State Regulatory Power - answer✔The US constitution does not identify powers that state
legislators can exercise. It says some powers can only be exercised by congress, like issuing
money. In all other situations, the federal and state governments exercise power concurrently.
States can do what they want unless congress has preempted the area
Regulating commerce between states, imposing and collecting taxes, and spending -
answer✔Congress can legislate in a few ways. The three most important are:
Affordable Care Act - answer✔An expansion of medicaid, most of employers must provide
health insurance, have insurance or face surtax, prevents rejection based on pre-existing
condition. Also referred to as "Obamacare", signed into law in 2010.
3 court cases on the matter.
2nd - Law unconstitutional as it doesn't affect interstate commerce. 5 justices agreed with the
argument, and held that it doesn't affect interstate commerce, and can't pass under the
commerce clause. But, the swing vote was Justice Roberts; he said that the law is constitutional
under Congress' allowance to tax as it created a penalty if one didn't buy health insurance
(basically a tax). Trump tax law reduced to zero if you didn't buy health insurance
3rd - Argued that since the penalty was zeroed out, and since the penalty is gone (no tax), is it
unconstitutional? Rejected as the Supreme Court had at that point become very popular and
millions were depending on it.
Incorporation - answer✔Supreme Court action making the protections of the Bill of Rights
applicable to the states
Many of the amendments to the constitution have to do with protecting individual rights. They
very often say the federal or state governments can do something, but they rarely say both.
Under this, any that only refers to one has been interpreted to apply for both governments.
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