Business 8th Edition by Marianne Jennings

Exercise 8

Virginia had a series of statutes, Virginia's Alcoholic Beverage Control (ABC) laws, Va.Code § 4.1-100 et seq., which barred out-of-state producers of alcoholic beverages from directly marketing and shipping such beverages to Virginia residents. Only Virginia producers could ship alcoholic beverages directly, while out-of-state producers could not obtain off-premises licenses or ship direct. The scheme required all liquor to pass through the hands of a Virginia-licensed entity. A group of citizens challenged the ABC statutes on the basis of the Commerce Clause, contending that the ABC laws favored local wine and beer manufacturers, who are permitted to sell directly to consumers, and discriminated against out-of-state wine and beer manufacturers, who must sell through the more costly multitiered structure. Virginia maintains that it has a public policy interest in ensuring the safety of alcoholic products and their distribution in Virginia. Are the ABC statutes constitutional? [ Bolick v Danielson, 330 F.3d 274 (4th Cir. 2003); see also Dickerson v Bailey, 336 F.3d 388 (5th Cir. 2003)]