If Congress Imposes a Regulation on Business That Is Constitutional

question 59

Multiple Choice

If Congress imposes a regulation on business that is constitutional:

• A) "local" businesses will be exempt
• B) the part of the business in intrastate commerce is exempt
• C) states may not enact similar laws that burden interstate commerce
• D) states may enact similar laws even if they burden interstate commerce
• E) none of the other choices are correct

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Definitions:

Salomon v. Salomon

A foundational company law case from the UK, establishing the principle that a corporation has a separate legal personality, distinct from its shareholders.

Secured Creditor

A creditor that has a legal claim, or lien, on collateral that secures loan repayment.

Legal Entity

An organization or individual with legal rights and obligations, like a corporation or partnership.

Personal Guarantee

A guarantee of payment for another’s obligation.