I find that in most customer service issues--not all--the problem is,as the movie said, "A failure to communicate."
My guess is that some clerk was given specific instructions and she followed them. My guess is that this place is constantly being tested by the tobacco control folks, so they are very, very strict.
Lets not be so quick to jump on the small businessman.
The OWNER is the one who looked at it and told the military man to "GET OUT OF HERE!"
I think the OWNER needs to be EDUCATED!