Landmark Supreme Court Cases on Commerce Clause and Corporate Scandals, Exams of Advanced Education

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MIE 305 exam 2 cases

McCulloch v. Maryland - Answer- Question was whether Congress could legislate implied powers that it believed was necessary and proper to facilitate to enumerated powers Marshall said "If the end be legitimate, all the means which are appropriate may constitutionally be employed..." McCulloch defended congress by saying the US Bank regulates interstate and foreign commerce and court said okay Gibbons v. Ogden - Answer- Congress' power to regulate interstate commerce was inclusive of navigation (movement of goods), the entire commercial transaction Congress' power over commerce is plenary (unqualified and absolute) by constitutional design Houston, East & West Texas Railway Co. v. United States - Answer- Shreveport Rate Case Congress power to regulate interstate commerce if the activity affecting it existed or occurred in one state Close and substantial relation test- determines whether action is interstate or intrastate Stafford v. Wallace - Answer- Creates a stream of commerce test for gauging an intrastate actor's effect on interstate commerce Heart of Atlanta Motel v. US - Answer- Racial discrimination violated the commerce clause, specifically interstate commerce They ruled congress has the power of removal based on the commerce clause Lopez v. US - Answer- The court ruled against Congress use of interstate commerce clause in its passage of the federal Gun Free School Zones Act City of Philadelphia v. New Jersey - Answer- The Court held that the state law prohibiting the importation of waste from out-of-state was a violation of the dormant commerce clause because the law was facially discriminatory.

Kassel v. Consolidated Freightways Corp. - Answer- Iowa passed a state law that prohibited doubles- maximum length limitations Iowa was trying to protect their trucking system as "safer" Court rejected Iowa's argument because they are discriminating out of state legislatures Strict scrutiny standard Maine v. Taylor - Answer- Supreme Court ruled that state law prohibiting the importation of bait from outside Maine was constitutional because the state's economy was largely dependent on the fishing industry "A legitimate purpose, and that this purpose cannot be served as well by available nondiscriminatory means" Reeves Inc v. Stake - Answer- Market Participant exception Since cement was a commodity on the open market and the South Dakota plant was in competition with private sellers on that market, it could constitutionally adopt buyer origin as one of its sales VA Pharmacy Board v. VA Consumer Council - Answer- VA said if pharmacies advertising prices- someone can under cut Court said you cant do that just because your scared Central Hudson Gas & Electric Corp. v. Public Service Commission - Answer- Keeping energy companies from trying to spend money during energy crisis NY said they are going to keep prohibition in place to save energy Central Hudson gas has a right to encourage people to use product Commercial speech is speech, central Hudson won Brandenburg v Ohio - Answer- Modified the clear and present danger test to the Imminent lawless action standard Kelo v. City of New London - Answer- Eminent domain case: Local governments may force the sale of private property and make way for private economic development when officials decide it would benefit the public. Lumley v Gye - Answer- Intentional Interference with Contracts

First Case to Codify this Tort as a Valid Legal Concept (1850s in England) Sunbelt Rentals v Head& Engquist Equipment - Answer- Hires sunbelt workers and started a multi year campaign- tactical hiring for the purpose of making sunbelt collapse Kremen v. Cohen - Answer- Because intangible domain name sex.com is connected to a tangible electronic document (DNS), the common law's strict requirement of merger is satisfied such that a domain name can be the subject of a conversion action. Plasgraf v. Long Island Railroad - Answer- V&M Res Ipsa Case` - Answer- V&M sued Centimark for negligence under Res Ipsa Denied because it was not under Centimark's exclusive control Enron Scandal - Answer- Energy services company intermediating between natural gas producers and their customers mitigating energy-price fluctuations by fixing the selling price. As a market boom receded enron with the help of the accounting and consultation firm Arthur Andersen cooked the the books to please shareholders Eventually the number caught up to them and led to a great hit on the stock market leaving both companies bankrupt. BP Deepwater Horizon Oil Spill Scandal - Answer- BP spilled 210 million gallons of Oil into the gulf and refused external reporters and engineers to gauge and or aid in the process of the event happening Their denial of the severity of the issue led the spill to last much longer than could have been if they admitted fault and allowed external help with the process Subprime mortgage and Lehman Brothers Scandal - Answer- The bank and financial services firm had become so deeply involved in mortgage origination that it had effectively become a real estate hedge fund disguised as an investment bank. At the height of the subprime mortgage crisis, it was exceptionally vulnerable to any downturn in real estate values. The bankruptcy triggered a one-day drop in the Dow Jones Industrial Average of 4.5%, at the time, the largest decline since the September 11, 2001 attacks. They were ethically responsible for the firms and ecosystem around them that they indirectly influence in the market.

The collapse in the firm during the downturn of in real estate values led to a terrible recession in recent history Nissan/ Carlos Ghosn (2019-20) - Answer- CEO of Nissan engaged in high stakes financial management and fraud theft scam Japanese prosecutors wanted to try Ghosn and fled Japanese justice system Shareholders lost money, company needing internal restructuring Ford Pinto (1970s) - Answer- Pinto's CEO went into mass production and wanted Ford to capitalize on smaller vehicles Gas tank was mounted too close to the rear bumper so car blew up when hit with low speed rear crashes... Ford engineers warned them about this problem Government then found out and forced them to recall Volkswagen Emissions (2015) - Answer- Volkswagen were faking catalytic converter results to comply with US and other emission standards Faked numbers and put cars out on the market CEO gone, massive fines