Smith and Roberson’s Business Law
Smith and Roberson’s Business Law
17th Edition
ISBN: 9781337094757
Author: Richard A. Mann, Barry S. Roberts
Publisher: Cengage Learning
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Chapter 4, Problem 12CP
Summary Introduction

To discuss: Whether the racial discrimination restrict interstate commerce.

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In January 2016 Ben Sisko bought a “Quark's Burgers” franchise in Montana. Quark's Burgers has over 100 franchisees, and its franchise agreement states that all franchisees must offer menu items as directed by Quark's Burgers, and that the failure to do so could result in the immediate termination of the franchise. Ben bought the franchise because he was a vegetarian, and its menu was free of meat products.  In addition, Ben's religion forbids the eating of any meat products.  Ben's franchise was very successful, and every year he received an award from Quark's Burgers for being one of the top 10% of its franchisees. In April 2019 Quark's Burgers changed its menu; among the changes included breakfast sandwiches with bacon, ham, or sausage. Ben refused to sell these items at his store on the ground that his religion forbids the eating of pork products.   In January 2020 Ben opened a second franchise, at which he also refused to sell products with meat products. Ben's franchises…
Indian Coffee Company, a coffee roaster in Pittsburgh, Pennsylvania, sold its Breakfast Cheer coffee in the Pittsburgh area, where it had an 18 percent market share, and in Cleveland, Ohio, where it had a significant, but smaller, market share. Late in 1971, Folger Coffee Company, then the leading seller of branded coffee west of the Mississippi, entered the Pittsburgh market for the first time. In its effort to gain market share in Pittsburgh, Folger granted retailers high promotional allowances in the form of coupons. Retail customers could use these coupons to obtain price cuts. Redeeming retailers could use the coupons as credits against invoices from Folger. For a time, Indian tried to retain its market share by matching Folger’s price concessions, but because Indian operated in only two areas, it could not subsidize such sales with profits from other areas. Indian, which finally was forced out of business in 1974, later filed a Robinson—Patman suit against Folger. At trial,…
The state of Alabama enacted a statute that imposed a tax on premiums earned by insurance companies. The statute imposed a 1 percent tax on domestic insurance companies (i.e., insurance companies that were incorporated in Alabama and had their principal office in the state). The statute imposed a 4 percent tax on the premiums earned by out-of-state insurance companies that sold insurance in Alabama. Out-of-state insurance companies could reduce the premium tax by 1 percent by investing at least 10 percent of their assets in Alabama. Domestic insurance companies did not have to invest any of their assets in Alabama. Metropolitan Life Insurance Company, an out-of-state insurance company, sued the state of Alabama, alleging that the Alabama statute violated the Equal Protection Clause of the U.S. Constitution. Who wins and why? Explain your answer.
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