Our country would function quite nicely, and there'd be much more freedom - of the type created by our founders, if the BATF (and OSHA, for that matter), went away.
This guy and his family, employees, and community are getting railroaded by a bunch of jack-booted thugs using bureaucratic diktats and the barrel of a gun as their "legitimate" reason for RUINING good people's lives.
On the bright side, at least THIS time, they're not severely injuring or murdering anyone.
Failure to report multiple purchases, to do background checks, and to maintain records of denials. In fact they're at the heart of the law. You may consider the law unconstitutional, but your opinion doesn't release Red's or any dealer from following it. Whether this was a pattern of evasion, or simply monumentally stupid management, it's hard to tell. The courts will have to sort that one out.