Constitution Law and business - Research Paper Example

Constitutional Law and Business October 22, Constitutional Law and Business Constitutions are written documents whichprovide legal guidance under which nations operate as well as businesses within their jurisdiction. The laws contained in the constitutions of countries are the ultimate supreme laws of their respective lands and set guidelines which affect among other things, business activities. For instance, the United States of America and Germany are examples of major economies in their geographical locations which operate under constitutions.

Their constitutions therefore set forth the structures of government, outline powers the governments have over businesses, their ability to regulate and guarantees of the right to operate and conduct business activities. However, constitutional laws bear significant impacts on how businesses are conducted, the nature of businesses as well as their scope. For instance, the U.S, Constitution governs businesses through the Commerce Clause while most of Germany’s commercial law is affected by the European Union’s legislation.

In the end, constitutional laws on businesses will ultimately impact on the economic performance of the respective countries.Constitutional Law and BusinessBasics about the German and the US ConstitutionsThe U.S constitution was ratified in 1788. Despite this passage of time, it has continued to evolve in tandem with the needs of the changing culture and economic environment. The U.S constitution generally regulates business through the Commerce Clause enshrined in Article 1, Section 8 and Clause 3 (Bahners, 2014).

The German Republic’s constitution is sometimes referred to as the Basic Law for the Federal Republic of Germany. It has been in existence for about 60 years. In this duration it has been amended 55 times. For instance, in 2009, Germany’s constitution was amended to effect the debt break (or Schuldenbremse). Bahners (2014) states that this law applies to both the federal government as well as the Lander (individual states). Differences between the German and the U.S ConstitutionsGermany is a federal government like the United States.

However, the jurisdiction of the German constitution in relation to business is affected by among other sources, the European Union’s regulations on trade and preferential trade area agreements (Bahners, 2014). Though similarly a federal government, the U.S Congress is accorded with the final authority to regulate business and commercial activities between itself and foreign nations. Therefore, both federal and state governments play roles in regulating commercial activities on the domestic and international stages (Allmendinger, 2013).The U.S state and federal governments share equal authority to regulate domestic and foreign trade.

In Germany, the European Single Market overrides the German constitution in allowing free movement of capital and goods across member states which brings about a modern business framework (Bahners, 2014). Impact of Laws on BusinessIn Germany, restrictive laws federal and state laws govern business operations such as opening and closing hours. Closure of businesses takes place at 8 pm in most cities while stores remain close on Sundays. In 2006, some states allowed extensions on business hour regulations; a move that was not immediately embraced (Allmendinger, 2013).

However, in recent times, state regulations on such hours have given online commerce businesses an advantage. E-commerce sites continue to perform very well with 30% of the total sales being conducted online especially outside business hours (weekends and evenings) stipulated by the law (Bahners, 2014).In the U.S, the constitution is more favorable to businesses and accords individual states more freedom to exercise commerce and business laws. This freedom translates to a more enabling business environment as the constitution seeks to provide protection to businesses and consumers in equal measure.

ReferencesAllmendinger, C. (2013). Company Law in the European Union and theUnited States: A Comparative Analysis of the Impact of the EU Freedoms of Establishment and Capital and the U.S. Interstate Commerce Clause. William & Mary Business Law Review, 4 (1) , 1-44.Bahners, P. (2014). What Distingushes Germanys Basic Law from the United States Constitution? Notre Dame, IN: University of Notre Dame.