Cengage Advantage Books: Foundations of the Legal Environment of Business 2nd Edition by Marianne Jennings, Albert Napier, Marianne Jennings

Exercise 5

Rhonda Kallman founded a company that produces Moonshot 69, a caffeinated beer. Each bottle of beer contains about twice as much caffeine as a can of Pepsi. In 2011, Ms. Kallman, along with three other manufacturers, was served with a cease and desist notice from the FDA to remove the caffeine from her beer or stop selling the product. Ms. Kallman has said that what the FDA is doing is like Prohibition 2010 and that it has no authority to regulate the sale or production of alcohol. She also indicates that Moonshot 69 is not an energy drink like those that are subject to FDA regulation. She says that agencies should regulate and not ban products. What information could you share with Ms. Kallman that would help determine what the FDA is trying to accomplish?