Now that everyone is talking about MVC, I notice that the business rules are not being addressed. In the old days of the 3-tier architecture, The business rules were in the middle layer. Where do they fall in the new MVC?
At first brush, I'd say they belong in the model. The MVC Entry on Wikipedia seems to agree: "In MVC, the model represents the information (the data) of the application and the business rules used to manipulate the data". After all, by 'Business rules' we mean the functional algorithms and logic that encode the domain that your application is involved with, as opposed to input/output related logic. These core business-related logic does not - or should not- change based upon what is being displayed to the user (which is the domain of the View) or the user input (which is primarily received by the Controller).
In my experience, asking this sort of question has been very revealing during the software development process: we found a large number of things that were considered 'business rules' by some people, but turned out to be something else. If it is not a true business rule, it might not belong to the model.