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Supremes evaluate Internet booze shopping
The Register (U.K.) ^ | December 8, 2004 | William C. Greene

Posted on 12/09/2004 2:02:32 PM PST by Stoat

Supremes evaluate Internet booze shopping

Published Wednesday 8th December 2004 23:35 GMT
The US Supreme Court heard arguments Tuesday on whether or not consumers should be permitted to shop for wine via the Internet and have it delivered directly to their doors. Hundreds of millions of dollars in state taxes and distributors' commissions are at stake, so the notion is being fought vigorously by states and industry lobbyists.

There are two apparently contradictory passages in the US Constitution that the Supremes will have to reconcile. One is the Twenty-First Amendment, which says that:

 

"The transportation or importation into any state, territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited."

Now, this does seem to say that states can regulate booze sales with impunity; but there is another item, in Article I, Section 9, often called the "Commerce Clause," which says that:

"No tax or duty shall be laid on articles exported from any state. No preference shall be given by any regulation of commerce or revenue to the ports of one state over those of another: nor shall vessels bound to, or from, one state, be obliged to enter, clear or pay duties in another."

Which for ages has been understood to say that states cannot discriminate against each other at all in regulating commerce.

So, while the Twenty-First Amendment insists that booze regulation is a state matter, the Commerce Clause rather insists that a state can't have two sets of regs, one for its own producers, and one for the rest of the country.

The Supremes were not sympathetic to state arguments suggesting that the Twenty-First Amendment somehow overrides the Commerce Clause.

Additionally, the states took a shot at the old 'save-the-children' con, warning that kids would soon be partying with $80 bottles of wine bought on line, instead of the usual cocktails of Ever Clear and Kool-Aid. However, since many states allow home delivery of booze from local outfits, this argument lost a good deal of its weight.

The Court will be reluctant to do much violence to either the Twenty-First Amendment or the Commerce Clause, as it prefers to gut the Constitution only when individual liberties interfere with law-and-order or commercial interests. Thus a likely outcome would be a ruling whereby the states are permitted to regulate booze as before; but, when a state permits local direct delivery to consumers, it would have to extend the same privileges to out-of-state outfits. ®

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TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Front Page News; Government; News/Current Events
KEYWORDS: booze; ecommerce; internet; interstatetrade; liquor; supremecourt; supremes; wine

1 posted on 12/09/2004 2:02:33 PM PST by Stoat
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To: Stoat

the Commerce Clause rather insists that a state can't have two sets of regs, one for its own producers, and one for the rest of the country.




Someone care to point this out to me - cause that is not the standard definition of the commerce clause that I know.


2 posted on 12/09/2004 2:06:02 PM PST by taxcontrol (People are entitled to their opinion - no matter how wrong it is.)
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To: Stoat

Diana Ross?


3 posted on 12/09/2004 2:15:09 PM PST by rightwinggoth
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To: rightwinggoth

4 posted on 12/09/2004 2:17:38 PM PST by Stoat
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To: Stoat
I think this is a short and clear analysis of what is at issue in this case, and also a correct prediction of the outcome when the Court hands down its decision. And I don't think the case will be close (i.e., 5-4).

Congressman Billybob

Click for latest, "Should the Iraqi Election be Delayed?"

5 posted on 12/09/2004 2:20:39 PM PST by Congressman Billybob (Visit: www.ArmorforCongress.com please.)
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To: Stoat

That "76% of Brit workers drunk after lunch" bit is misleading, since only 68% consume any alcohol at lunch...they are saying 76% of the 33% who have booze at least three times a week for lunch feel "slightly drunk" when coming back to work. That's about 25% of the total...and the percentage who are really drunk is probably a good deal less than that.


6 posted on 12/09/2004 2:20:58 PM PST by Verginius Rufus
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To: taxcontrol
Doesn't the "Commerce Clause" refer to Article I Section 8, which gives Congress the power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;"?

The intent of the founders was clear that the free trade of goods may not be restriced at state borders.

The issue here is whether one state can ban products produced in another state. Well, not "ban" exactly, but require that those disfavored products be sold only by certain private companies (liquor wholesalers), effectively imposing duties on them.

It's about time that the Supreme Court struck down these state rules - the only purpose of which is to funnel money to the mafia.

7 posted on 12/09/2004 2:27:18 PM PST by snopercod (Bigger government means clinton won. Less freedom means Osama won. Get it?)
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To: snopercod

Agreed. I can buy booze and wine from an ewholesaler out of state [I live in TX] but not from a winery itself.

Common sense is lost.


8 posted on 12/09/2004 4:31:46 PM PST by Indie (Ignorance of the truth is no excuse for stupidity.)
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To: Indie

Would this ruling also apply to the "evil tobacco"? After all, the regulating authority IS the BATFE.


9 posted on 12/09/2004 4:57:02 PM PST by jcparks (LFOD)
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To: snopercod
Actually what the Commerce clause does is enumerate the power of Congress to regulate trade between the states. It says NOTHING about .... one set of regulations for within or without the state... as was supposed by the comment I was responding to.

In fact, if Congress wanted to, it could -- under the commerce clause -- say that each state MUST add 5% tax to all commerce incoming from different states.

[far fetched but possible]

As to this specific issue working under well established legal practice of Amendments "trumping" clauses in the Constitution [consider the issue of slavery and taxation], the 21st amendment would trump the commerce clause.

The 21st is quite clear in it's plain language that the STATES shall have the authority to regulate intoxicating drinks shipped into their state.

I personally don't CARE one way or the other. However, follow the rules or change them. If you don't like the 21st, the pass another amendment. Or better yet, get rid of your state legislators who support such controls.
10 posted on 12/09/2004 5:09:06 PM PST by taxcontrol (People are entitled to their opinion - no matter how wrong it is.)
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To: jcparks

I've been buying "evil" tobacco from esmokes dot com for ages...LOL..

And if I used the "evil" marijuana, I'd grow it myself.

[Obviously I'm against the WOD..or the War on Substances as I like to call it]


11 posted on 12/09/2004 5:27:44 PM PST by Indie (Ignorance of the truth is no excuse for stupidity.)
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To: Indie

My point was, how long before your "state" decides that you are illegally importing a regulated substance into their "state" without paying the required taxes; which is what this winery case is all about.
BTW, did you know that the war on "some" drugs cost us taxpayers about $60 BILLION/year to fight a $10 BILLION/year industry? WTF?


12 posted on 12/09/2004 5:38:44 PM PST by jcparks (LFOD)
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