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Corporate personhood

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163:("body"), and juridical personhood is often assumed in medieval writings; by the Renaissance period, European jurists routinely held that churches and universities chartered by the government could gain property, enter into contracts, sue, and be sued, independent of its members. The government (or the Pope) granted religious organizations "the power of perpetual succession": church property would not revert to the local lord, nor be taxed, upon the death of church members. Some town charters explicitly granted medieval towns the right of self-governance. Commercial endeavors were not among the entities incorporated in the medieval era, and even risky trading companies were originally run as common-law partnerships rather than corporations; the incorporation of the 189:". In court cases regarding corporate, the shareholders are not responsible for the company's debts but the company itself being a "legal person" is liable to repay those debts or be sued for the non-repayment of debts. The non-human entities given the "legal person" status by the law "have rights and co-relative duties; they can sue and be sued, can possess and transfer property". Since these non-human entities are "voiceless" they are legally represented "through guardians and representatives" to claim their legal rights and to fulfill their legal duties and responsibilities. Specific non-human entities given the status of "legal person" include "corporate personality, 608:(203 U.S. 243 (1906)), the Court accepted that corporations are for legal purposes "persons", but still ruled that the Fourteenth Amendment was not a bar to many state laws which effectively limited a corporation's right to contract business as it pleased. However, this was not because corporations were not protected under the Fourteenth Amendment—rather, the Court's ruling was that the Fourteenth Amendment did not prohibit the type of regulation at issue, whether of a corporation or of sole proprietorship or partnership. 689:, Rehnquist's objections are based on his "views of the limited application of the First Amendment to the States" and not on whether corporations qualify as "persons" under the Fourteenth Amendment. Nonetheless, these justices' rulings have continued to affirm the assumption of corporate personhood, as the Waite court did, and Justice Rehnquist himself eventually endorsed the right of corporations to spend in elections (the majority view in 599:– 125 U.S. 181 (1888), the Court clearly affirmed the doctrine, holding, "Under the designation of 'person' there is no doubt that a private corporation is included . Such corporations are merely associations of individuals united for a special purpose and permitted to do business under a particular name and have a succession of members without dissolution." This doctrine has been reaffirmed by the Court many times since. 36: 396: 469:. Although the Federal government has from time to time chartered corporations, the general chartering of corporations has been left to the states. In the late 18th and early 19th centuries, corporations began to be chartered in greater numbers by the states, under general laws allowing for incorporation at the initiative of citizens, rather than through specific acts of the legislature. 544:, the obligation of which cannot be impaired without violating the Constitution of the United States. This opinion appears to us to be equally supported by reason, and by the former decisions of this Court." Beginning with this opinion, the U.S. Supreme Court has continuously recognized corporations as having the same rights as natural persons to contract and to enforce contracts. 325:, asserted that such perspectives are often overgeneralizations, and that the decision to grant corporate rights in a given sphere should be governed by the consequences of doing so. The 1980s saw an explosion of economic analyses, with a corporation often viewed as a nexus of contracts and as an economic agent appointed to act on behalf of its shareholders. 559:, writing for the court, explicitly extended the same protections to corporate-owned property as it would have to property owned by natural persons. Seven years later, Chief Justice Marshall stated: "The great object of an incorporation is to bestow the character and properties of individuality on a collective and changing body of men." 2051:(Knopf, 2007). The 'conspiracy theory' here has not to do with the Waite-Davis correspondence regarding the reporter headnotes, but with a disingenuous attempt to claim congressional intent in the original framing of the 14th Amendment that it include establishing corporate personality as constitutionally protected. 102:, separately from its associated human beings (like owners, managers, or employees), has at least some of the legal rights and responsibilities enjoyed by natural persons. In most countries, a corporation has the same rights as a natural person to hold property, enter into contracts, and to sue or be sued. 276:
as it applies to corporations, without the Court having actually made a decision or issued a written opinion on that point. This was the first time that the Supreme Court was reported to hold that the Fourteenth Amendment's equal protection clause granted constitutional protections to corporations as
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1974 Amendments to Federal Election Campaign Act provided for first comprehensive system of regulation, including limitations on the size of contributions and expenditures and prohibitions on certain entities from contributing or spending, disclosure, creation of the Federal Election Commission as a
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U.S. courts have extended certain constitutional protections to corporations under various rationales. An early perspective, variously known as 'contractual', 'associate', or 'aggregate' theory, holds that owners of property have certain constitutional protections, even when the property is held via
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generated new inventions and business processes. The favored form for large businesses became the corporation because the corporation provided a mechanism to raise the large amounts of investment capital large business required, especially for capital intensive yet risky projects such as railroads.
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as having legal rights allows corporations to sue and to be sued, provides a single entity for easier taxation and regulation, simplifies complex transactions that would otherwise involve, in the case of large corporations, thousands of people, and protects the individual rights of the shareholders
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argued both from an 'association' perspective ("if the antidistortion rationale were to be accepted... it would permit Government to ban political speech simply because the speaker is an association that has taken on the corporate form") and from a 'natural entity' perspective ("the worth of speech
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This federal statute has many consequences. For example, a corporation may enter contracts, sue and be sued, and be held liable under both civil and criminal law. Because the corporation is legally considered the "person", individual shareholders are not legally responsible for the corporation's
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below), corporations could exercise the rights of their shareholders and these shareholders were entitled to some of the legal protections against arbitrary state action. Their cause was strengthened by the adoption of general incorporation statutes in the states in the late 19th century, most
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Similarly, proponents might argue a juridical person can be a device for exercising shareholders' rights to free speech. Under this perspective, such constitutional rights might also extend to other associations of people, even where the association does not take on the formal legal form of a
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in order to facilitate collective perpetual ownership of assets beyond the founders' lifespans, and to avoid their fragmentation and disintegration resulting from personal property inheritance laws. Later on, incorporation was advocated as an efficient and secure mode of economic development:
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argued in the 1880s that "Statutes violating their prohibitions in dealing with corporations must necessarily infringe upon the rights of natural persons. In applying and enforcing these constitutional guaranties, corporations cannot be separated from the natural persons who compose them."
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notably in New Jersey and Delaware, which allowed anyone to form corporations without any particular government grant or authorization, and thus without the government-granted monopolies that had been common in charters granted by the Crown or by acts of the legislature (see
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monopoly in 1600 broke new ground, and by the end of the century, commercial ventures frequently sought incorporation in Europe and the Americas. By the 19th century, the direction of British and American corporate law had diverged; British law of this period (such as the
360:, "ppellants the use of the word 'taxpayer' several times in the regulations requires the fifth-amendment self-incrimination warning be given to a corporation." The Court did not agree. Likewise, corporations and organizations do not have privacy rights under the 622:
Federal statutes that refer to "persons" generally include both natural and juridical ones, unless a different definition is given. This general rule of interpretation is specified in Title 1, section 1 of the U.S. Code, known as the Dictionary Act, which states:
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During the colonial era, British corporations were chartered by the crown to do business in North America. This practice continued in the early United States. They were often granted monopolies as part of the chartering process. For example, the controversial
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ruled that corporate political spending is protected, holding that corporations have a First Amendment right to free speech because they are "associations of citizens" and hold the collected rights of the individual citizens who constitute them.
589:, which forbids a State to deny to any person within its jurisdiction the equal protection of the laws, applies to these corporations. We are all of the opinion that it does." While the headnote is not part of the Court's opinion and thus not 378:
majority opinion makes no reference to corporate personhood or the Fourteenth Amendment, but rather argues that political speech rights do not depend on the identity of the speaker, which could be a person or an association of people.
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debts and damages. Similarly, individual employees, managers, and directors are liable for their own malfeasance or lawbreaking while acting on behalf of the corporation, but are not generally liable for the corporation's actions.
764:(1990) upheld the right of the state of Michigan to prohibit corporations from using money from their corporate treasuries to support or oppose candidates in elections, noting: "orporate wealth can unfairly influence elections." 572:
equal protection clause guarantees constitutional protections to corporations in addition to natural persons, and the oral argument should focus on other issues in the case. In the Santa Clara case the court reporter,
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in 2010, upholding the rights of corporations to make unlimited political expenditures under the First Amendment, there have been several calls for a Constitutional amendment to abolish corporate personhood. The
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In a U.S. historical context, the phrase "corporate personhood" refers to the ongoing legal debate over the extent to which rights traditionally associated with natural persons should also be afforded to
809:(2010): the Supreme Court of the United States held that corporate funding of independent broadcasts of films about political subjects when there is an upcoming election cannot be limited under the 382:
Individual shareholders cannot generally sue over the deprivation of a corporation's rights; only the board of directors has the standing to assert a corporation's constitutional rights in court.
786: 551:(1823), in which an English corporation dedicated to missionary work, with land in the U.S., sought to protect its rights to the land under colonial-era grants against an effort by the state of 352:
Generally, corporations are not able to claim constitutional protections that would not otherwise be available to persons acting as a group. For example, the Supreme Court has not recognized a
657:, such as entering into a contract or owning property. Therefore, corporations have always had a "juridical personality" for the purposes of conducting business while shielding individual 172:) appeared to focus more on corporations that more closely resembled traditional joint ventures, while American law was driven by the need to manage a more diverse corporate landscape. 582: 569: 273: 492:). The Supreme Court of Virginia ruled that the original Crown charter provided the authority for the corporation's Board of Visitors to make changes including the reorganization. 2232: 799: 602:
The 14th Amendment does not insulate corporations from all government regulation, any more than it relieves individuals from all regulatory obligations. Thus, for example, in
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the words "person" and "whoever" include corporations, companies, associations, firms, partnerships, societies, and joint stock companies, as well as individuals;
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Among the most frequently discussed and controversial consequences of corporate personhood in the United States is the extension of a limited subset of the same
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A central point of debate in recent years has been what role corporate money plays and should play in democratic politics. This is part of the larger debate on
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McCurdy, C. W. (1975). "Justice Field and the Jurisprudence of Government-Business Relations: Some Parameters of Laissez-Faire Constitutionalism, 1863–1897".
708: 1514: 1381: 364:, since the statute refers to any "individual," which it defines as "a citizen of the United States or an alien lawfully admitted for permanent residence." 318:
corporation. A second perspective, known as the 'real entity' or 'natural entity' view, shifts the presumption of corporate regulation against the states.
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Ancient Indian society used legal personhood for political, social, and economic purposes. As early as 800 BC, legal personhood was granted to guild-like
302: 139:. The diverse collegia had different rights and responsibilities that were independent of the individual members. Some collegia resembled later medieval 1141: 2237: 752: 681: 532: 518:(1886), the Supreme Court held that the Fourteenth Amendment applied to corporations. Since then the Court has repeatedly reaffirmed this protection. 778: 604: 2121: 767: 760: 2068: 2011: 1988: 1878: 1857: 1827: 1772: 1753: 1435: 901: 417: 155:
advantages over existing partnership structures included the corporation's continuing existence if a member died; the ability to act without
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Torres-Spelliscy, Ciara (2013). "Taking Opt-In Rights Seriously: What Knox v. SEIU Could Mean for Post-Citizens United Shareholder Rights".
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repeatedly criticized the Court's invention of corporate constitutional "rights", most famously in his dissenting opinion in the 1978 case
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The degree of permissible government interference in corporate affairs was controversial from the earliest days of the nation. In 1790,
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The bottom line or public health: tactics corporations use to influence health and health policy and what we can do to counter them
509: 1055: 1037: 1244: 1091: 744:(1976) upheld limits on campaign contributions, but held that spending money to influence elections is protected speech by the 564: 484:, in litigation that required him to defend the corporation's right to reorganize itself and in the process remove professors, 466: 305:
because those aspects placed a substantial burden on the company's owners' free exercise of sincerely held religious beliefs.
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Under Indian law the corporate, managing bodies, etc. and several other non-human entitles have been given the status of the "
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and were allowed to advance the needs of a trade as a whole, but collegia were otherwise barred from enriching their members.
756:(1978) upheld the rights of corporations to spend money in non-candidate elections (i.e. ballot initiatives and referendums). 421: 169: 129:
granted legal personhood to municipalities, public works companies that managed public services, and voluntary associations (
2222: 1840:(Oxford, 1992), especially Chapter 3, usefully places the notion within the context of competing strains of jurisprudence. 974: 724: 283: 581:, began oral argument by stating, "The court does not wish to hear argument on the question whether the provision in the 2196: 941: 1590: 1221: 2131: 1283:"United States of America, Plaintiff-appellant, v. S. Steve Sourapas and Crest Beverage Company, Defendants-appellees" 1018: 951: 481: 1492:"United States Code: Title 1,1. Words denoting number, gender, and so forth | LII / Legal Information Institute" 1081: 1063: 1045: 982: 356:
right against self-incrimination for a corporation, since the right can be exercised only on an individual basis. In
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philosophy should reject the doctrine of corporate personhood under the Fourteenth Amendment. Indeed, Chief Justice
2227: 2114: 906: 489: 58: 1312: 406: 1180: 881: 536:– 17 U.S. 518 (1819), writing: "The opinion of the Court, after mature deliberation, is that this corporate 425: 410: 269: 194: 114: 568:– 118 U.S. 394 (1886), Chief Justice Waite of the Supreme Court orally directed the lawyers that the 287:
in 1819, had recognized that corporations were entitled to some of the protections of the Constitution. In
929: 151: 2107: 992: 934: 911: 834: 496: 333:'does not depend upon the identity of its source, whether corporation, association, union, or individual 1540: 1368: 661:
from personal liability (i.e. protecting personal assets which were not invested in the corporation).
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Russell, J. F. S. (1955). "The Railroads in the "Conspiracy Theory" of the Fourteenth Amendment".
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Mindful economics: how the U.S. economy works, why it matters, and how it could be different
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Ralph Nader and Robert Weissman. Letter to the Editor: Ralph Nader on Scalia's "originalism"
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In determining the meaning of any Act of Congress, unless the context indicates otherwise—
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Notion that corporations can have some legal rights, responsibilities and accountability
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Granting non-human entities personhood is a Western concept applied to corporations.
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Unequal Protection: How Corporations Became ""People"" – and How You Can Fight Back
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As the 19th century matured, manufacturing in the U.S. became more complex as the
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a corporation rather than directly under the owner's own name. Corporate attorney
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Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights
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did not preclude a Montana state law prohibiting corporate spending in elections.
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Following the reasoning of the Dartmouth College case and other precedents (see
395: 298: 147: 99: 1599:, Published: Thursday, November 13, 2008, Updated: Tuesday, September 29, 2009. 1850:
Corporate Bodies and Guilty Minds: The Failure of Corporate Criminal Liability
1491: 959: 322: 218: 159:; and limited liability. The word "corporation" itself derives from the Latin 1158: 1027: 590: 549:
Society for the Propagation of the Gospel in Foreign Parts v. Town of Pawlet
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Seven years after the Dartmouth College opinion, the Supreme Court decided
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118 U.S. 394 (1886) – Official court Syllabus in the United States Reports
1222:"Birds to holy rivers: A list of everything India considers 'legal persons 1099: 650: 541: 462: 321:
The dominant view from the 1920s to the 1980s, championed by philosopher
255: 237:, and gram panchayats (village councils), rivers, all animals and birds. 230: 214: 131: 1000: 845:
The corporate personhood aspect of the campaign finance debate turns on
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Corporations and organizations also do not have any Privacy Act rights.
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McLaughlin, A. C. (1940). "The Court, the Corporation, and Conkling".
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regulatory agency, and government funding of presidential campaigns.
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Some rulings combine multiple perspectives; the majority opinion in
1792: 1567:"Corporate Person-hood and Constitutional Rights for Corporations" 1181:"When Did Companies Become People? Excavating The Legal Evolution" 1140:
Davoudi, Leonardo; McKenna, Christopher; Olegario, Rowena (2018).
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Western Tradition Partnership, Inc. v. Attorney General of Montana
202: 1661:"Citizens United v. Federal Election Comm'n, 558 U.S. 310 (2010)" 721:, banned corporate political contributions to national campaigns. 226: 2103: 714:
In the United States, legal milestones in this debate include:
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In the Middle Ages, juridical persons were chartered either as
2057:"Introduction – Corporate Personhood Ushers in the Gilded Age" 790:(2007) weakened McCain–Feingold, but upheld core of McConnell. 389: 29: 1746:
Trusted Criminals: White Collar Crime in Contemporary Society
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The Rev John Bracken v. The Visitors of Wm & Mary College
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deal primarily with the United States and do not represent a
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Mendelson, W. (1970). "Hugo Black and Judicial Discretion".
1541:"Corporate Personhood: What It Means and How It Has Evolved" 787:
Federal Election Commission v. Wisconsin Right to Life, Inc.
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Hamilton, W. H. (1938). "The Path of Due Process of Law".
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Pembina Consolidated Silver Mining Co. v. Pennsylvania
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Pembina Consolidated Silver Mining Co. v. Pennsylvania
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claimed to state the sense of the Court regarding the
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is the legal notion that a juridical person such as a
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Concurrence & Dissent In Part (John Paul Stevens)
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Chicago, Milwaukee, & St. Paul Railroad v. Ackley
1742:"Corporate Personhood and Corporate Decision Making" 358:
United States v. Sourapas and Crest Beverage Company
2174: 2138: 2000:"Can Corporate Personhood Be Socially Responsible?" 1142:"The historical role of the corporation in society" 265:
Santa Clara County v. Southern Pacific Railroad Co.
1428:Encyclopedia of American civil liberties, Volume 1 859:ruled that political spending is protected by the 504: 1711:"Citizens United v. Federal Election Commission" 1201:"Corporate Personhood and the Corporate Persona" 774:which mentioned candidates close to an election. 2004:The debate over corporate social responsibility 1011:Santa Clara County v. Southern Pacific Railroad 897:History of central banking in the United States 770:(McCain–Feingold), banned corporate funding of 711:and the role which money may play in politics. 515:Santa Clara County v. Southern Pacific Railroad 125:that operated in the public interest. The late 1366:Citizens United v. Federal Election Commission 1351:Citizens United v. Federal Election Commission 852:Citizens United v. Federal Election Commission 795:Citizens United v. Federal Election Commission 370:Citizens United v. 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Hopkins 772:issue advocacy ads 197:etc.", as well as 165:East India Company 2228:Collective rights 2210: 2209: 2187:Return of results 2070:978-0-19-537563-3 2013:978-0-19-517882-1 1990:978-1-58322-655-1 1880:978-1-58322-847-0 1859:978-0-226-47041-2 1829:978-1-60509-559-2 1773:978-1-59420-122-6 1763:Gore, Al (2007). 1755:978-0-495-60082-4 1437:978-0-415-94342-0 1234:, September 2019. 947:Persona designata 677:William Rehnquist 647:juridical persons 562:In the 1886 case 488:(7 Va. 573; 1790 459:Bank Bill of 1791 454: 453: 446: 342:juridical persons 248:juridical persons 195:charitable unions 87: 86: 79: 16:(Redirected from 2245: 2124: 2117: 2110: 2101: 2095: 2074: 2046: 2017: 1994: 1971: 1942: 1913: 1884: 1863: 1833: 1812: 1775: 1759: 1726: 1725: 1723: 1721: 1707: 1701: 1700: 1698: 1696: 1682: 1676: 1675: 1673: 1671: 1657: 1651: 1650: 1648: 1646: 1632: 1626: 1625: 1623: 1621: 1606: 1600: 1588: 1582: 1581: 1579: 1577: 1562: 1556: 1555: 1553: 1551: 1536: 1530: 1529: 1527: 1525: 1510: 1504: 1503: 1501: 1499: 1488: 1482: 1472: 1466: 1463: 1457: 1456: 1448: 1442: 1441: 1419: 1413: 1403: 1397: 1396: 1394: 1392: 1378: 1372: 1363: 1357: 1348: 1342: 1341: 1334: 1328: 1327: 1322: 1320: 1301: 1295: 1294: 1292: 1290: 1279: 1273: 1272: 1270: 1268: 1263:. 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FEC 645:Corporations as 478:Continental Army 449: 442: 438: 435: 429: 398: 390: 336: 82: 75: 71: 68: 62: 38: 37: 30: 21: 2253: 2252: 2248: 2247: 2246: 2244: 2243: 2242: 2213: 2212: 2211: 2206: 2182:Protected group 2170: 2166:Right of return 2146:Right to resist 2139:National rights 2134: 2128: 2098: 2077: 2071: 2054: 2049:Age of Bettayal 2035:10.2307/1889179 2020: 2014: 1997: 1991: 1974: 1960:10.2307/2147556 1945: 1931:10.2307/1839788 1916: 1902:10.2307/1890641 1896:(4): 970–1005. 1887: 1881: 1866: 1860: 1843: 1830: 1815: 1778: 1762: 1756: 1739: 1735: 1733:Further reading 1730: 1729: 1719: 1717: 1709: 1708: 1704: 1694: 1692: 1684: 1683: 1679: 1669: 1667: 1659: 1658: 1654: 1644: 1642: 1634: 1633: 1629: 1619: 1617: 1608: 1607: 1603: 1589: 1585: 1575: 1573: 1564: 1563: 1559: 1549: 1547: 1538: 1537: 1533: 1523: 1521: 1512: 1511: 1507: 1497: 1495: 1490: 1489: 1485: 1473: 1469: 1464: 1460: 1450: 1449: 1445: 1438: 1421: 1420: 1416: 1404: 1400: 1390: 1388: 1380: 1379: 1375: 1364: 1360: 1349: 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2119: 2112: 2104: 2097: 2096: 2075: 2069: 2052: 2029:(4): 601–622. 2018: 2012: 1995: 1989: 1972: 1943: 1914: 1885: 1879: 1864: 1858: 1841: 1834: 1828: 1813: 1793:10.1086/290001 1776: 1760: 1754: 1736: 1734: 1731: 1728: 1727: 1702: 1677: 1652: 1627: 1601: 1583: 1557: 1531: 1505: 1483: 1467: 1458: 1443: 1436: 1414: 1398: 1373: 1358: 1343: 1329: 1296: 1274: 1252: 1247:March 5, 2018 1236: 1214: 1186: 1172: 1131: 1130: 1128: 1125: 1124: 1123: 1105: 1087: 1069: 1051: 1033: 1006: 988: 969: 968: 963: 962: 957: 949: 944: 939: 938: 937: 932: 924: 919: 914: 909: 904: 899: 894: 889: 884: 878: 876: 873: 843: 842: 822: 791: 783: 775: 765: 757: 749: 732: 728: 722: 704: 701: 613: 610: 579:Morrison Waite 575:Bancroft Davis 523: 520: 452: 451: 402: 400: 393: 387: 384: 260:court reporter 258:issued by the 242: 239: 235:municipalities 182: 179: 177: 174: 127:Roman Republic 110: 107: 85: 84: 49:of the subject 47:worldwide view 42: 40: 33: 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 2250: 2239: 2236: 2234: 2231: 2229: 2226: 2224: 2221: 2220: 2218: 2203: 2200: 2198: 2195: 2193: 2190: 2188: 2185: 2183: 2180: 2179: 2177: 2173: 2167: 2164: 2162: 2159: 2157: 2156:Treaty rights 2154: 2152: 2149: 2147: 2144: 2143: 2141: 2137: 2133: 2125: 2120: 2118: 2113: 2111: 2106: 2105: 2102: 2093: 2089: 2085: 2081: 2076: 2072: 2066: 2062: 2058: 2053: 2050: 2044: 2040: 2036: 2032: 2028: 2024: 2019: 2015: 2009: 2005: 2001: 1996: 1992: 1986: 1982: 1978: 1973: 1969: 1965: 1961: 1957: 1953: 1949: 1944: 1940: 1936: 1932: 1928: 1924: 1920: 1915: 1911: 1907: 1903: 1899: 1895: 1891: 1886: 1882: 1876: 1872: 1871: 1865: 1861: 1855: 1851: 1847: 1842: 1839: 1835: 1831: 1825: 1821: 1820: 1814: 1810: 1806: 1802: 1798: 1794: 1790: 1787:(3): 269–96. 1786: 1782: 1777: 1774: 1770: 1766: 1761: 1757: 1751: 1747: 1743: 1738: 1737: 1732: 1716: 1712: 1706: 1703: 1691: 1687: 1681: 1678: 1666: 1662: 1656: 1653: 1641: 1637: 1631: 1628: 1616: 1612: 1605: 1602: 1598: 1597: 1592: 1587: 1584: 1572: 1568: 1561: 1558: 1546: 1542: 1535: 1532: 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