The Klan Motel Is One of Twenty Motels in Town

question 125

Multiple Choice

The Klan Motel is one of twenty motels in town but the only one that refuses to rent rooms to non-whites. Congress holds that motels may not discriminate on the basis of race. The Klan Motel challenges the regulation as it applies to that motel. The owner will:

• A) win; so long as there are plenty of motels available, there is no significant effect on interstate commerce by such discrimination
• B) win; a motel is a place of private, not public, accommodations
• C) lose; all forms of racial discrimination are forbidden by the Commerce Clause
• D) lose; Congress may regulate such local businesses
• E) lose if the state in which the motel is located has passed a similar law to apply to motels

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Definitions:

Corporate Scandals

Incidents involving alleged or actual unethical behavior by people in leadership positions within corporations.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the purchase of another, often unrelated product (the tied product).

Sherman Antitrust Act

A landmark 1890 U.S. legislation aimed at regulating competition among enterprises, preventing monopolies, and promoting fair business practices.

Cross-Border Mergers

Mergers involving companies headquartered in different countries with the aim of expanding market reach, efficiency or capabilities.