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by mjx0
983 days ago
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The unlimited “freedom of contract” is an idea that the US Supreme Court reversed position on in the 1930s – merely 30 years after it was invented – and for good reason. For those wondering, “freedom of contract” as a term of art is essentially the idea that a government cannot regulate the behavior of parties to a contract, because the involved parties have some unlimited power of contract. The US Supreme Court found this in Lochner v. New York (1905), and reversed it in West Coast Hotel Co. v. Parrish (1937). You seem to have implied a business’ right to exist, and operate at the expense of others free from regulation. As demonstrated, the earlier part of your comment was rather light on factually correct information, but could you cite the jurisprudence backing this idea of yours? |
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In addition, your definition is inconsistent with the standard applied by Lochner or the Constitution. In the majority opinion of Lochner, the power of contract was not unlimited, as the court deemed health regulations in general as a proper exercise of the state's police powers. However, the State of New York had to demonstrate that its health law regarding employee hours was not employment regulation in disguise (hint: it was) and that any such regulation did not infringe upon the protection of rights afforded by the 14th amendment (hint: it did)
Contrary to your statement, freedom of contract had preceded Lochner for over a century. Article 1 Section 10 of the Constitution explicitly recognizes that the states may not inter alia impair contracts. The Contracts Clause has been invoked in Fletcher v. Peck and Trustees of Dartmouth College v. Woodward. Both cases form the bedrock of modern contract jurisprudence today.