CASE STUDY

Massachusetts Wineries

Massachusetts Wineries

Facts of the Case

The fact of the case surrounds the laws imposed in Massachusetts with respect to distribution of alcohol. The question has been raised that section 19F discriminates unconstitutionally against interstate commerce. The case defines that only small wineries are allowed in section 19F in Massachusetts. There is a condition applied as well that those who are producing 30,000 gallons or less of grape wine a year can apply and obtain shipping license for small winery. With this license small wineries are allowed to sell their wines. They can sell it in three ways which are:

by directly shipping to consumers,

Through distribution by wholesaler, and

Through distribution by retail.

The concept of distribution and activities that comprise it, has been improving in most cities. Marketing or marketing means set of physical and economic activities in charge of bringing the goods and services between producers and consumer. Marketing or marketing includes physical activities: harvesting, packing, cleaning, sorting, transport, storage, handling, etc.., and activities economic: buying, selling, pricing, supported by other activities soon tangible as are risks, and pricing information opportunities to buy or sell, and sales promotion. There are different ways or approaches to understand and analyze the marketing agriculture and agribusiness. It highlights the functional approach, based on the knowledge of the activities or functions responsible for carrying the goods from the producer to the consumer, in a logical sequence that begins with the harvest, followed with collection, transportation, storage, processing, and training of prices, the sale and delivery to final consumers. It can also be analyzed from knowledge of the persons or entities fulfilling these functions, as they would in the same order: the collection, wholesaler, the retailer, the processor, the consumer.

There are other attractions that consumers move to the big surfaces. Interest in purchasing an art form and the greatest variety products are among the factors that attract to the supermarkets to consumers who are increasingly demanding and selective. On the other hand, urban consumers are more concerned about individual purchase, access product immediately, without the intervention of a salesperson.

Small Wineries Located Out Of State

If small wineries were located out of the state than there must have been some exceptions made for them. I idea of discrimination was to promote small wineries Massachusetts laws may let small wineries enter in their market. The court held that the Massachusetts statute discriminated against out of state wineries by design intentionally.

In Massachusetts it is asserted that sector 19F was designed with the purpose that it will advantage Massachusetts wineries against those which produces maximum amount of country's wine. Such violation of commerce law is putting large wineries into losses. Massachusetts defends by stating that it is not having any discriminating effect and argues the immunization from commerce clause under the state law. This argument was based under the twenty first amendments.

Sector 19F not only distributes Massachusetts wineries but also those of wholesaler distribution, direct shipping and retail sales. There seems to have a gallonage cap which benefits ...