Law Analysis � Judicial Concepts
Case Analysis
Laws and regulations are essential components of the business environment. The tools see
to it that all parties in business interaction receive what they deserve. The business environment
also requires the law when solving conflicts that arise between parties. Laws vary in their
functionality, with some aiming at protecting consumers, and others pursuing the maintenance of
fair trading systems. The Consumer Protection Act, for instance, minimizes the occurrence of
consumer complaints by stating the guidelines that business operators should follow (Ministry of
Government and Consumer Services, 2015).
Facts
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CASE ANALYSIS
The plaintiff challenged the defendant’s mandate of expanding Medicaid insurance
coverage (National Federation of Independent Businesses vs. Secretary of Health and Human
Services, 2012). Medicaid program was an initiative of the federal government that aimed at
offering health insurance to the citizens. Later, the government developed the Affordable Care
Act to offer a broader coverage than the Medicaid. People who failed to comply with the new
plan had to make shared payments as a responsibility. The Act stated that non-compliant parties
would pay a tax of five thousand dollars as a penalty.
The plaintiff disagreed with the defendant on the description of the payment that the non-
compliant parties paid. The plaintiff felt that the “penalty” nature of the payment could present a
collision between the new policy and the Anti-Injunction Act. The plaintiff also argued that the
payment that the defendant charged the non-compliant parties was exaggerated, and could leave
no other alternatives for the parties, but to buy the policy.
The Supreme Court ruled in favor of the defendant stating that the government had the
right to impose the tax on parties who failed to comply with the plan. The court also ruled that
the tax that the government charged non-compliant parties was within a reasonable amount and
its collection was lawful. However, the court warned that the collection of the revenue had to
satisfy the requirements of the Direct Tax Clause. The jury also made it apparent that the Anti-
Injunction Act did not hinder the plan from taking its course.
An Evaluation of Concepts
Various factors influence decision-making on judgments concerning business issues.
When making decisions, judges rely on their past experiences, logic, statutory laws, as well as
the constitution. It is through logical reasoning that judges assess the importance of opposing
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CASE ANALYSIS
decisions. Settling on a particular answer when making decisions on business matters also
involves aspects such as in-depth evaluations.
There were a several dissenting opinions that presented in the determination of the case.
Three of the nine judges found the expanded form of Medicaid, the ACA, to be out of the
constitutional boundaries. The three felt that states faced an unconstitutional threat if they failed
to comply with the plan. Also, the jury had different opinions regarding the role of the Congress
in regulating the implementation of the new scheme.
The ruling of the court on the issue was reasonable and justifiable. Though the
questionable plan commanded rather than requested parties to enroll in it, the move was
necessary for ensuring that people exploited the chance hence making it easier to coordinate
insurance care. Again, the plan did not violate the provisions of the Consumer Clause as it aimed
at promoting the well-being of its subjects. The court also made a reasonable decision by
requiring the Congress not to pressure the states to implement the plan. Such an action by the
Congress could amount to the violation of the federal provisions.
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CASE ANALYSIS
References
Ministry of Government and Consumer Services. (2015, April 9). Queen’s Printer for Ontario.
National Federation of Independent Business vs. Secretary of Health and Human Services.
