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Case Brief 4.2 - appealed to the U.S Court of Appeals Issue...

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Michael Knutson (11040656) Lindsey 7 February 2010 Business Law Case Brief 4.2: Bad Frog Brewery v. New York State Liquor Authority Facts: Bad Frog Brewery, Inc. sells alcoholic beverages, some of which feature a frog “giving the finger”. Renaissance Beer Company, Bad Frog’s authorized New York distributor, applied to the New York State Liquor Authority (NYSLA) for brand approval as is required in the state before the beer could be sold. The NYSLA denied the application, claiming that “the label could appear in grocery and convenience stores, with obvious exposure on the shelf to children of tender age”. In short, the NYSLA wanted to protect the State’s interest in keeping children from vulgar dis- plays. Bad Frog filed a suit against the NYSLA in a federal district court asking for an injunction against the denial of the application. The court ruled in favor of the NYSLA, to which Bad Frog
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Unformatted text preview: appealed to the U.S. Court of Appeals. Issue: Is the banning of Bad Frog’s label an unlawful restriction of commercial speech? Holding: Yes Reasoning/Law: “Generally, a restriction on commercial speech is considered valid as long as it meets three criteria: (1) it must seek to implement a substantial government interest, (2) it must directly advance that interest, and (3) it must go no further than necessary to accomplish its ob-jective”. In this case, the court reasoned that, because alcoholic beverages are not targeted at minors, and because many children’s items such as comic books contain vulgar displays, that barring this label could not reasonably be expected to reduce children’s exposure to vulgar material. Furthermore, the NYSLA didn’t make any addi-tional efforts to consider alternatives to the ban....
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