Identify and Explain the Three Major Standards of Judicial Review

question 57

Essay

Identify and explain the three major standards of judicial review that the Supreme Court uses to judge the constitutionality of state and federal laws that create classifications among citizens. What types of laws trigger review under each standard? Which standard imposes the most difficult burdens on the government defending a law? Why?

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Definitions:

Public Issue

The offering of shares by a company to the public for the first time to raise capital.

Standby Fee

A charge paid to a lender or service provider for keeping credit or facilities available to a borrower, even if not currently used.

Overallotment Option

A provision that allows underwriters to sell investors more shares than initially planned by the issuer, typically in an Initial Public Offering (IPO).

IPO Underpricing

The phenomenon where the initial offering price of a stock is set lower than the market price on its first trading day.