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 3
A Massachusetts statute established differential methods by which wineries may distribute wines in Massachusetts. The statute allows only small wineries, defined as those producing 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 Massachusettss wineries are small wineries. Some outofstate 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 gallons of grape wine annually. These large wineries must choose between relying upon wholesalers to distribute their wines instate 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 their statute was designed with the purpose, and has the effect, of advantaging. Massachusetts wineries to the detriment of those wineries that produce percent of the countrys wine, in violation of the Commerce Clause. Decision? Explain.
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