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Supremes unstopper interstate wine commerce

Todd Zywicki and Michael Cernovich report that the U.S. Supreme Court has ruled that "states can no longer block the free flow of wine through interstate commerce.  Granholm v. Heald, No. 03-1116 (U.S. May 16, 2005)," writes Cernovich. In Cheers to the Court, Cernovich quotes the holding: 

"States have broad power to regulate liquor under ยง2 of the Twenty-first Amendment. This power, however, does not allow States to ban, or severely limit, the direct shipment of out-of-state wine while simultaneously authorizing direct shipment by in-state producers. If a State chooses to allow direct shipment of wine, it must do so on evenhanded terms. Without demonstrating the need for discrimination, New York and Michigan have enacted regulations that disadvantage out-of-state wine producers. Under our Commerce Clause jurisprudence, these regulations cannot stand."

Zywicki links to a number of his writings on the subject here.

Update 5.17.05: In Legal Times, Tony Mauro writes, "The 5-4 decision caps a 20-year campaign by the wine industry to overturn states' protective laws, which the Court's majority found violate the commerce clause of the Constitution. "This is the best day for wine-lovers since the invention of the corkscrew," said Clint Bolick, who argued on behalf of the winemakers..."

Posted by Product Team on May 16, 2005 at 03:32 PM | Permalink | TrackBack (0)


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