BL 2413 – THE LEGAL ENVIRONMENT OF BUSINESS

CHAPTER 1: LAW AND LEGAL REASONING

PART ONE

BASICS OF LAW
A. WHAT IS LAW?
Law consists of enforceable rules governing relationships among individuals and
between individuals and their society.
B. WHY HAVE LAWS?
Law provides:
1. Stability
2. Predictability
C. WHY IS LAW IMPORTANT TO BUSINESSES?
Liability is the state of being legally responsible (liable) for something, such as a
debt or obligation.
Liability means:
1. You are responsible for something that happened
AND YOU CAN BE
2. Sued and have to pay a lot of money
AND/OR YOU CAN
3. Go to prison.
SOURCES OF LAWS
A . WHY WORRY ABOUT SOURCES OF LAW?
We need to know where to find laws so we know:
1. What the law says I can do.
2. What the law says I cannot do.
3. Where to find these laws to support my arguments.
B. CATEGORIES OF SOURCES
1. Primary Sources of Law
A primary source of law is a source that establishes the law.
a. Primary Source One: Constitutions
i. Source: Federal Constitution
ii. Source: State Constitutions
iii. These Two Sources Create Constitutional Law
Constitutional Law is the law as expressed in the U.S. and state
constitutions.
b. Primary Source Two: Statutes
Statutes are laws passed by the legislature.
i. Source: Federal Statutes
Passed by the federal congress.
ii. Source: State Statutes
And each state’s legislature passes state statutes.
iii. Source: Local Ordinances
 Local governing bodies of government – like city and county
governments pass statutes too.
An ordinance is a regulation passed by municipal or county
governing entities to deal with matters not covered by federal or
state law.
1. An Ordinance Is:
A. A Law Passed by a
B. Municipal Government
Municipal = City
OR
C. County Government
D. On Issues Not Taken Care of by a Federal or State
Statute
iv. The Three Sources Create Statutory Law
Statutory Law are laws enacted by legislative bodies at any level of
government, such as statutes passed by Congress or by state
legislatures.
A. Federal Statutes Apply Everywhere in the U.S.
B. State Statutes Apply Only in That Particular State
C. Local Ordinances Only Apply within that City or County
c. Primary Source Three: Administrative Law
An administrative agency is a federal, state, or local government agency
established to perform a specific function.
i. Source: Federal Administrative Agency Regulations Apply to All
States
ii. Source: State Administrative Agency Regulations Apply to Just the
State Where the Law was Passed
iii. Source: Local Administrative Agency Regulations Apply to Just the
Local Area
iv. These Three Sources Create Administrative Law
Administrative Law consists of the rules, orders, and decisions of
administrative agencies.
d. Primary Source Four: Case Law
Case Law is a body of judge-made law, and it’s the doctrines and
principles announced in cases about issues not covered by statutory law,
administrative law, or constitutional law.
i. How Does Case Law Occur?
1. A Judge Hears a Case About an Issue
2. Not Covered by a:

2
 A. Constitution (Federal OR State)
B. Statute (Federal OR State OR Local Ordinance)
C. Administrative Regulation (Federal OR State OR Local)
3. A Constitution, Statute, or Administrative Regulation is Unclear
2. Secondary Sources of Law
Secondary Sources of Laws are books and articles that summarize and
clarify the primary sources of law.
a. Secondary Sources of Law Can Be:
i. Legal Encyclopedias
ii. Law Review Articles
b. What is the Purpose of Secondary Sources?
Judges will read these secondary sources to help them understand
how to interpret the primary sources of law.
1-3 COMMON LAW TRADITION
U.S. Law Based on English Legal System
1-3a. Early English Courts
Common Law is a body of general rules that applied throughout the
entire English realm
Common Law = Uniform Legal System
1. Courts of Law and Remedies at Law
A Court of Law is a court in which the only remedies that can be
granted are things of value, such as money damages.
A Remedy is the legal means to enforce a right or redress a
wrong.
And Redress just means to correct a wrong.
And Damages is an amount of money given to a party
whose legal interests have been injured.
a. King’s Court could grant only limited remedies
b. Because You Were Wronged in Some Way
c. Remedies at Law
i. Land
ii. Items of Value
iii. Money
d. King’s Courts became known as Courts of Law
e. An Example of Today’s Court of Law:
i. Mississippi’s Circuit Court
1. Each County Has a Circuit Court
2. It is a Court of Law
3. Meaning that You Can Get Remedies
4. In the Form of Money
2. Courts of Equity

3
 A Court of Equity is a court that decides controversies and
administers justice according to the rules, principles, and
precedents of equity.
A Precedent is a decision that furnishes an example or authority for
deciding subsequent cases involving identical or similar legal
principles or facts.
Equity is a fancy way of saying “being fair.”
In a Court of Equity:
a. Justice is Administered
b. Because You Were Wronged in Some Way
3. Remedies in Equity
a. Specific Performance involves ordering a party to
perform an agreement as promised.
b. An Injunction is an order to a party to cease engaging in
a specific activity.
c. An Example of Today’s Court of Equity: Mississippi’s Chancery
Court
i. Each County Has a Chancery Court
ii. It is a Court of Equity
iii. Meaning that You Can Seek Remedies
iv. In the Form of Specific Actions
4. Equitable Maxims
A defense is an argument raised by the defendant (the party
being sued) indicating why the plaintiff (the suing party) should not
obtain the remedy sought.
The party bringing a lawsuit is called the petitioner, and the party
being sued is referred to as the respondent.
Time periods for different types of cases are now usually fixed by
statutes of limitations.
Equitable maxims are propositions or general statements of
equitable rules.
a. Whoever seeks equity must do equity (treat others fairly);
b. Where there is equal equity, the law must prevail (the law
will determine the outcome);
c. One seeking the aid of an equity court must come to the
court with clean hands (have acted fairly and honestly);
d. Equity will not suffer a wrong to be without a remedy

(equitable relief will be awarded when there is no legal

remedy);

4
 e. Equity regards substance rather than form (fairness
and justice are more important than legal
technicalities);
f. Equity aids the vigilant, not those who rest on their
rights (neglect their rights for an unreasonable period
of time).
5. Procedural Differences between an Action at Law and an
Action in Equity:
i. In an action at law: a lawsuit is initiated by filing a
complaint; the decision is made by jury or judge; a
judgment is the result; and remedy is in the form
of monetary damages or property.
ii. In an action in equity: a lawsuit is initiated by

filing a petition; the decision is made by a judge (no

jury); a decree is the result; and remedy is in the form of

injunction, specific performance, or rescission.

1-3c. The Doctrine of Stare Decisis
1. Case Precedents and Case Reporters
Precedent is a decision that furnishes an example or authority for
deciding subsequent cases involving identical or similar legal
principles or facts.
Judges will often issue written judgments detailing the reasoning
that led to their decision. A Reporter is a publication in which
court cases are published or reported.
2. Stare Decisis and Common Law Tradition
Deciding new cases with reference to former decisions or
precedents formed a doctrine known as stare decisis, a Latin
phrase meaning “to stand on decided cases.”
Stare decisis has two aspects:
(1) A court should not overturn its own precedents
unless there is a compelling reason to do so.
(2) Decisions made by a higher court are binding on
lower courts.
3. Controlling Precedents
A controlling precedent is a type of binding authority that
requires a court to follow prior court decisions in its jurisdiction.
Binding authority is any source of law a court must follow when deciding
a case, including applicable constitutions, statutes, and regulations.
4. Stare Decisis and Legal Stability:
Stare decisis makes the law more stable and predictable.

5
 A court may depart from the rule of precedent if it decides that the
precedent should longer be followed. (Brown v. Board of Education
of Topeka)
5. When There Is No Precedent
In cases of first impression, no precedents exist.
Nonbinding primary or secondary sources of law that a court may
consult for guidance in these cases are known as persuasive
authorities.
Sources may include precedents from other jurisdictions; legal
principles and policies underlying previous court decisions or
existing statutes; issues of fairness, social values and customs, and
public policy; and unpublished opinions.
*Ethics Today*
Kimble v. Marvel Entertainment, LLC (576 U.S. 446)
1-3d. Stare Decisis and Legal Reasoning
The process by which a judge harmonizes an opinion with the
judicial decisions in previous cases is called legal reasoning.
1. Basic Steps in Legal Reasoning
The IRAC method is a legal reasoning process used to decide cases
regardless of their length and complexity. IRAC is an acronym for
Issue, Rule, Application, and Conclusion. The following questions
are used to apply this method:
1. Issue—What are the key facts and issues?
2. Rule—What rule of law applies to the case?
3. Application—How does the rule of law apply to the particular
facts and circumstances of this case?
4. Conclusion—What conclusion should be drawn?
1-3e. The Common Law Today
Common law governs all areas not covered by statutory law or
administrative laws.
1. Courts Interpret Statutes
Courts interpret statutes and regulations. Judges interpret and
apply the law but do not make laws.
2. Restatements of the Law Clarify and Illustrate the Common Law
The American Law Institute (ALI) publishes compilations called
Restatements of the Law that generally summarize the common
law rules followed by most states.
There are Restatements in the areas of contracts, torts, agency,
trusts, property, restitution, security, judgments, and conflict
of laws.
The Restatements are secondary sources of law and are an
important source of legal analysis and opinion. Many Restatements
are now in their second, third, or fourth editions.
PART FOUR

6
 SCHOOLS OF LEGAL THOUGHT
Jurisprudence: The study of law including the different schools of legal
philosophy and how each can affect judicial decision making.
1-4a. The Natural Law School
Natural law theory states that a higher, or universal, law exists that
applies to all human beings and that written laws should reflect the
principles inherent in natural law. If they do not, then they lose their
legitimacy and do not need to be obeyed.
1-4b. The Positivist School
Legal positivism holds that there is no law higher than the laws created by
a national government and that laws must be enforced to prevent anarchy
even if they are unjust. Legal positivism is the basis for positive—or
national—law.
1-4c. The Historical School
The historical school of legal thought emphasizes the evolutionary
process of law by concentrating on the origin and history of the legal
system. It looks to the past to determine what the principles of
contemporary law should be.
1-4d. Legal Realism
Proponents of legal realism believe law is just one of many institutions in
society and that it is shaped by social forces and needs. Because of these
factors, judges should take economic and social realities into account
when deciding cases.
The sociological school views law as a tool for promoting social justice.
PART FIVE
CLASSIFICATIONS OF LAW
Substantive law and Procedural law

Substantive law consists of all laws that define, describe, regulate, and
create legal rights and obligations.
Procedural law consists of all laws that outline the methods of enforcing
the rights established by substantive law.
1-5a. Civil Law and Criminal Law
Civil law spells out the rights and duties that exist between persons and
between persons and their governments, as well as the relief
available when a person’s rights are violated.
Criminal law is concerned with wrongs committed against the public as a
whole. Criminal acts are defined and prohibited by local, state, or federal
government statutes.
1-5b. Cyberlaw is a term used to describe the laws governing electronic
communications and transactions conducted via the Internet.
PART SIX
HOW TO FIND PRIMARY SOURCES OF LAW
Citation - A reference to a publication in which a legal authority - such as a
statute or a court decision—can be found.

7
 1-6a. Finding Statutory and Administrative Law
Shortly after a law is passed either by Congress or by a state legislature, it is
reported in United States Statutes at Large.
Most laws are referenced by their codified form—or the form in which they
appear in the federal and state codes—and are compiled by subject.
1. United States Code: Codified statutes passed by Congress are
reported under a title and title number that roughly
correspond to major subject matter areas (e.g., the Internal
Revenue Code).
2. State Codes: Codified statutes passed by a state legislature are
typically reported by subject in that state’s code (like the
Mississippi Code of 1972 Annotated).
3. Administrative Rules: Rules and regulations adopted by federal
agencies appear first in the Federal Register, which is
published daily.
These rules and regulations are eventually incorporated into the
Code of Federal Regulations (C.F.R.), which is divided into
titles just like the U.S.C.
1-6b. Finding Case Law
The two types of courts in the United States are federal courts and state
courts. Both systems consist of several levels, or tiers, of courts.
On the lowest tier are trial courts in which evidence is presented and
testimony is given. Decisions from a trial court can be appealed to a
higher court, which is typically an appellate court (intermediate court of
appeals).
Appellate court decisions may be appealed to an even higher court, such
as a state supreme court or the U.S. Supreme Court.
1. State Court Decisions
Decisions from state trial courts are typically filed in the office of the clerk
of the court and are available for public inspection.
The reported appellate decisions are published in volumes called reports
or reporters, which are numbered consecutively and published by each
state. Unofficial reports are published by nongovernment entities
a. Regional Reporters: State court opinions appear in regional units of
the West’s National Reporter System, published by Thomson
Reuters. Many states use this system because it reports
cases more quickly than their own state reporters and distributes
them more widely.
b. Case Citations: Published appellate decisions are normally referred
to (cited) by the name of the case and the volume, name, and
page number of the reporter(s) in which the opinion can be found.
2. Federal Court Decisions
Federal district court decisions are published unofficially in the Federal
Supplement (“F. Supp.” or “F. Supp. 2d”); opinions from the circuit courts

8
 of appeals are reported unofficially in the Federal Reporter (F., F.2d, or
F.3d).
The federal government publishes the official edition of the U.S. Supreme
Court decisions as the United States Reports (U.S).
3. Unpublished Opinions
Court opinions not yet published or that are not intended for publication
can be accessed through Thomson Reuters Westlaw.
4. Old Case Law
Citations for opinions from old, classic cases may not conform to
preceding descriptions.
PART SEVEN
HOW TO READ AND UNDERSTAND CASE LAW
1-7a. CASE TITLES AND TERMINOLOGY
The title of a case, such as Adams v. Jones, indicates Adams is the party
filing the suit against Jones, who is the defendant.
1. Parties to Lawsuits
a. Plaintiff/Petitioner: The party who initiates a lawsuit.
b. Defendant/Respondent: The party against whom the lawsuit is
brought.
c. Appellant/Petitioner: The party who takes an appeal from one
court to another.
d. Appellee/Respondent: The party against whom an appeal is taken.
2. Judges and Justices
The terms judge and justice are usually synonymous as designations
given to judges in various courts.
3. Decisions and Opinions
Reasons for a decision, the rules of law applied, and a judgment comprise
the court’s opinion.
a. Unanimous opinion: An opinion that represents the view of all the
judges who heard a case.
b. Majority opinion: A court opinion that represents the views of the
majority (more than half) of the judges or justices deciding
the case.
c. Concurring opinion: A court opinion by one or more judges who
agree with the majority opinion but not the legal reasoning
behind the opinion.
d. Dissenting opinion: An opinion by one or more judges who
disagree with the majority’s opinion.
e. Plurality opinion: An opinion supported by the largest number of
judges, but less than a majority of them.
f. Per curiam opinion: A unanimous opinion that does not indicate
which judge wrote it.
A. CONSTITUTIONAL POWERS OF GOVERNMENT
1. FEDERAL FORM OF GOVERNMENT

9
A Federal Form of Government is where the federal government and the state
governments share power.
a. FEDERAL POWERS
The Constitution listed specific powers the federal government can have.
“Federal Power = Limited”
b. STATE POWERS
i. Sovereignty is having independent authority over a geographic
area (i.e., the states having the power to govern themselves)
a.
Police Power
Police Power is power possessed by states as part of
their inherent sovereignty. These powers may be
exercised to protect or promote the public order,
health, safety, morals, and general welfare.
2. RELATIONS AMONG THE STATES
A. THE PRIVILEGES AND IMMUNITIES CLAUSE
The Privileges and Immunities Clause prevents states from imposing
unreasonable burdens on citizens of another state.
B. THE FULL FAITH AND CREDIT CLAUSE
The Full Faith and Credit Clause ensures that deeds, wills, contracts, and
judgments will be honored and enforced in all states.
3. SEPARATION OF POWERS
Checks and Balances allows each branch to limit the action of the other
two branches, preventing a branch from exercising too much power.
i. Legislative Branch
Power: Creates Laws
Checks and Balances: President Can Veto the Law and Not Allow it
to Pass
ii. Executive Branch
Power: Foreign Affairs
Checks and Balances: Can’t Go to War Without Consent of
Legislative Branch
iii. Judicial Branch
Power: Can Determine Actions of Other Two Branches Are
Unconstitutional
Checks and Balances:
Congress Determines Jurisdiction of Federal Courts
Jurisdiction is the authority of a court to hear a case and
decide a specific action.

10
 President: Appoints Federal Judges
4. THE COMMERCE CLAUSE
The commerce clause prevents states from establishing laws and
regulations that would interfere with trade and commerce among
the states.
A. The Expansion of National Powers under the Commerce Clause
As the nation grew and faced new kinds of problems, the commerce
clause became a vehicle for the additional expansion of the national
government’s regulatory powers.
(See Wickard v. Filburn, 317 U.S. 111 (1942))
B. The Commerce Clause Today
In theory, the power over commerce authorizes the national government
to regulate almost every commercial enterprise in the United
States.
The breadth of the commerce clause permits the national government to
legislate in areas in which Congress has not explicitly been granted
power.
(example: Medical Marijuana and the CSA)
C. The “Dormant” Commerce Clause
When state regulations interfere with interstate commerce, courts must
balance the state’s interest in regulating a certain matter against the
regulatory burden placed on interstate commerce.
5. THE SUPREMACY CLAUSE AND FEDERAL PREMEMPTION
The Supremacy Clause provides that the Constitution, laws, and treaties of the
United States are the supreme law of the land.
A Treaty is an agreement formed between two or more independent nations.
i. The Following Things Are Supreme Over State Laws:
a. Anything Related to the U.S. Constitution
b. Federal Laws
and
c. Treaties
ii. Preemption
Preemption is where certain federal laws take precedent over conflicting
state or local laws.
6. THE TAXING AND SPENDING POWERS
As long as a proposed measure bears a reasonable relationship to revenue
production, it will be deemed to fall within Congress’s taxing
authority.
Article I, Section 8 also empowers Congress “to pay the Debts and provide
for the common Defence and general welfare of the United States.”
B. BUSINESS AND THE BILL OF RIGHTS

11
The Bill of Rights is the first ten amendments to the U.S. Constitution, and these
amendments list rights individuals have, many of which are protections for individuals
against various types of government action.
The Bill of Rights, with certain notable exceptions, protects legal persons,
such as corporations and sole proprietorships, as well as natural persons.
The Bill of Rights:
guarantees freedom of religion, speech, and the press, as well as the rights
to peaceably assemble, and to petition the government [Amend. 1]
guarantees the right to keep and bear arms [Amend. 2]
prohibits unreasonable searches and seizures of persons or property
[Amend. 4] and guarantees fair payment for property taken for public use
[Amend. 5]
guarantees the rights to due process of law [Amend. 5], as well as the
rights to a speedy and public trial and to cross-examine witnesses
[Amend. 6]
guarantees the right to trial by jury in both criminal cases [Amend. 6] and
civil cases [Amend. 7]; and
prohibits excessive bails and fines, as well as cruel and unusual
punishment [Amend. 8].
1. Limits on Federal and State Governmental Actions
The protections afforded by the Bill of Rights are only against action by
the federal government.
i. The Fourteenth Amendment
In order to extend the same protections against actions by state
and local governments, the U.S. Supreme Court has
incorporated the protections afforded by the Bill of
Rights into the following language of the Fourteenth
Amendment:
“… [n]o State shall … deprive any person of life, liberty, or
property, without due process of law.”
ii. Judicial Interpretation: The rights secured by the Bill of Rights
are not absolute, because many of the rights guaranteed by the first
ten amendments are set forth in very general terms.
Ultimately, the U.S. Supreme Court, as the final interpreter of the
Constitution, gives meaning to these rights and determines their
boundaries.
2. Freedom of Speech
The First Amendment safeguards citizens from most forms of government
regulation of freedom of speech including symbolic speech (expressive
conduct, including gestures, movements, and clothing).
i. Reasonable Restrictions:
Because a balance is necessary between a government’s
obligation to protect its citizens and those citizens’
exercise of their rights, expression—oral, written, or

12
symbolized by conduct—is subject to reasonable
restrictions.
Content-Neutral Laws: Government may impose content-
neutral limits on the time, place, and manner of otherwise
protected speech.
Laws That Restrict the Content of Speech: The compelling
government interest test balances the government’s interest
against an individual’s constitutional right to free
expression.
Corporate Political Speech: Political speech by corporations
also falls within the protection of the First Amendment.
ii. Commercial Speech:
Government may restrict commercial speech as long as the
restriction:
(1) promotes a substantial government interest,
(2) directly advances said interest, and
(3) is no more restrictive than necessary in order to

achieve the substantial government interest.

iii. Unprotected Speech
The government may prohibit speech or writing that defames
or harms another person’s good reputation, is gauged to
threaten or incite violence (“fighting” words), or is obscene or
pornographic.
Threatening Speech
Speech that communicates a serious intent to commit an
unlawful, violent act against a particular person or group is
not protected.
Obscene Speech
Congress has been largely unsuccessful in attempts to pass

legislation protecting minors from pornographic materials

on the Internet. Exceptions include:
A law that requires filtering software on school and library
computers to keep children from accessing adult content.
A law that criminalizes intentional distribution of virtual
child pornography—which uses computer-generated
images, not actual people—without indicating that it is
computer-generated.
3. Freedom of Religion
The First Amendment also provides that “Congress shall make no law
respecting an establishment of religion, or prohibiting the free exercise
thereof …”
i. The Establishment Clause

13
 The establishment clause prohibits government from establishing a
state-sponsored religion or passing laws that promote or show a
preference for one religion over another.
Applicable Standard: Federal or state laws that do not promote or
place a significant burden on religion are constitutional.
Religious Displays: The Supreme Court has ruled that public
displays having historical, as well as religious, significance do not
necessarily violate the establishment clause.
ii. The Free Exercise Clause
The free exercise clause guarantees that people can hold any (or no)
religious beliefs. The following exceptions are made:
Restrictions Must Be Necessary: The government must have
a compelling state interest for restricting the free exercise of
religion.
Restrictions Must Not Be a Substantial Burden: A burden is
substantial if it pressures an individual to modify his or her
behavior and to violate his or her beliefs.
Public Welfare Exception: When public safety is an issue, an
individual’s religious beliefs often have to give way to the
government’s interest in protecting the public.
4. Searches and Seizures
The Fourth Amendment protects the “right of the people to be secure in
their persons, houses, papers, and effects.”
i. In most instances, officers must obtain a search warrant (an
order from a judge or other public official authorizing
the search or seizure) based on probable cause (reasonable
grounds) before searching a person’s property.
ii. For Fourth Amendment purposes, a “person” includes a
corporation, partnership, and other legal entities, although
the standard for probable cause with respect to such entities
is lower than required to search the person and/or
property of a natural person.
5. Self-Incrimination
The Fifth Amendment guarantees that no person “shall be compelled in
any criminal case to be a witness against himself.”
Unlike the Fourth Amendment’s protections against unreasonable
search and seizure, the self-incrimination privilege does not extend
to corporations or partner-ships, but it does protect sole
proprietorships and sole practitioners to the same extent as natural
persons are protected.
C. DUE PROCESS AND EQUAL PROTECTION
1. Due Process

14
 The Fifth and Fourteenth Amendments provide that no person shall be
deprived “of life, liberty, or property, without due process of law,”
which is known as the due process clause.
a. Procedural Due Process
Procedural due process requires that any government
decision to take life, liberty, or property must be made
equitably, giving the persons prior notice and the
opportunity to be heard.
b. Substantive Due Process:
Substantive due process focuses on the content of legislation
rather than the fairness of procedures, limiting what the
government may do in its legislative and executive
capacities. Legislation must be fair and reasonable in content
and must further a legitimate governmental objective.
A fundamental right (e.g., free speech, interstate travel,
privacy) will be protected unless the government can show a
compelling state interest (e.g., public safety).
In all other cases, a law or action will not violate substantive due
process as long as it is rationally related to any legitimate
governmental purpose.
2. Equal Protection
Under the Fourteenth Amendment, a state may not “deny any person
within its jurisdiction the equal protection of the laws.”
Like substantive due process under the Fifth Amendment, the
equal protection clause requires weighing the substantive effect of a
law or government action against the rights of the individual
against whom the law or action is directed.
If a law/action limits the liberty of some persons but not others, it
may violate the equal protection clause; the courts will apply a
strict scrutiny, intermediate scrutiny, or “rational basis” test.
a. Strict Scrutiny: A law or action is subject to strict scrutiny
and will only be upheld if it serves a compelling
state
interest.
b. Intermediate Scrutiny: If the law or action embodies a

classification based on gender or legitimacy, it is subject

to intermediate scrutiny and will only be upheld if it is

substantially related to important government objectives.

c The “Rational Basis” Test: If the law or action inhibits only
rights related to economic or social welfare, it will be

15
 upheld so long as there is any rational basis on which the

classification might relate to a legitimate government

interest.
D. PRIVACY RIGHTS
The U.S. Constitution does not explicitly mention a general right to privacy, but
courts have implied a fundamental right to personal privacy from the First,
Third, Fourth, Fifth, and Ninth Amendments.
1. Federal Privacy Legislation
Congress has also passed a number of laws protecting individual
privacy including:
the Freedom of Information Act, which allows any person access to
information collected about him/her by the federal government;
The Privacy Act, which regulates government agencies’ use and
disclosure of data, and gives individuals access to and a means to
correct inaccuracies;
The Electronic Communications Privacy Act, which prohibits the
interception of electronically communicated information;
The Health Insurance Portability and Account-ability Act, which
requires health-care providers and health-care plans to inform
patients/plan members of their privacy rights and to safeguard
personal medical records from disclosure for non-health-care
purposes; and
the Financial Services Modernization Act (Gramm-Leach-Bliley
Act), which prohibits the disclosure of nonpublic personal
information about a consumer to an unaffiliated third party unless
strict disclosure and opt-out requirements are met.
2. The USA Patriot Act
Following the 9/11 terrorist attacks, Congress passed the USA
Patriot Act, empowering government agencies to access and
monitor electronic, financial, and other personal data and
communication.

16