Question

The U.S. Constitution guarantees certain rights that allow people to engage in business activities. Which of the following does the U.S. Constitution not guarantee?
a. The constitution recognizes property rights. These due process clauses prevent the government from taking property away from an individual except when there is a public reason. Even then the government must pay the person the fair value of the property that has been taken.
b. The constitution also has rules on how the government can tax. The 16th Amendment gave Congress the right to set taxes based on income.
c. The Constitution guarantees people and businesses the right to make binding contracts. So individuals or businesses cannot use the political process to get out of a contract.

Answer 1

The correct answer is c. The Constitution guarantees people and businesses the right to make binding contracts. So individuals or businesses cannot use the political process to get out of a contract.

The US Constitution does not discuss the ability of individuals and businesses to make contracts. This type of deal is done on an individual basis. The US federal government has no input in these types of deals or what happens between the individual and business making the deal. The only way the federal government could involved in a case like this is if one of the parties involved broke a federal law.