Question: A Massachusetts statute established differential methods by which wineries may distribute wines in Massachusetts. The statute allows only small wineries, defined as those producing 30,000

A Massachusetts statute established differential methods by which wineries may distribute wines in Massachusetts. The statute allows only "small" wineries, defined as those producing 30,000 gallons or less of grape wine a year, to obtain a "small winery shipping license." This license allows them to sell their wines in Massachusetts in three ways: through shipments made directly to consumers, through wholesaler distribution, and through retail distribution. All of Massachusetts's wineries are "small" wineries. Some out-of-state wineries also meet this definition. Wines from "small" Massachusetts wineries compete with wines from "large" wineries, which Massachusetts has defined as those producing more than 30,000 gallons of grape wine annually. These "large" wineries must choose between relying upon wholesalers to distribute their wines in-state or applying for a "large winery shipping license" to sell directly to Massachusetts consumers. They cannot, by law, use both methods to sell their wines in Massachusetts, and they cannot sell wines directly to retailers under either option. Plaintiffs, a group of California winemakers and Massachusetts residents, assert that the statute was designed with the purpose, and has the effect, of advantaging Massachusetts wineries to the detriment of those wineries that produce 98 percent of the country's wine, in violation of the Commerce Clause. Decision?

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The statute violates the Commerce Clause Family Winemakers of California v Jenkins 592 F3d 1 1st Cir 2010 The Commerce Clause vests Congress with the ... View full answer

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