Question

What is the constitutional source of authority for the following law? A federal statute that makes it more difficult for businesses to qualify for protection under bankruptcy laws.

A) Article 1, § 8: Congress’s power to regulate interstate commerce
B) Article 1, § 8: Congress’s power to regulate bankruptcy laws.
C) Article 1, § 8: Tax and spend powers.

Answer 1

The authority for a federal statute impacting business bankruptcy qualifications stems from Article 1, Section 8, Clause 4 of the U.S. Constitution, which grants Congress the power to regulate bankruptcy laws.

Step-by-step explanation:

The constitutional source of authority for a federal statute that makes it more difficult for businesses to qualify for protection under bankruptcy laws is Article 1, § 8: Congress’s power to regulate bankruptcy laws. Specifically, Section 8 Clause 4 of Article I grants Congress the authority to establish uniform rules of bankruptcy throughout the United States. This power falls under the enumerated powers that the Constitution details, which allow Congress to effectively regulate various aspects of national economic activity, including bankruptcy.