Fact Pattern 4-1 You Own Priscilla's Pecans. You Employ Five People and Sell

question 140

Multiple Choice

Fact Pattern 4-1
You own Priscilla's Pecans. You employ five people and sell your pecan products in one town in Georgia. Your products are not sold in any other state.
The federal government imposes regulations on the pecan industry. The Georgia legislature issues its own safety laws that are stricter than the federal rules. Georgia also places a tax on pecan products made out-of-state because it fears those products will not be as safe as those produced in Georgia under the strict Georgia regulations.
The regulations raise the cost of doing business. To register your unhappiness with the Georgia regulations you attach a label to your products that alerts customers to the rules and expresses your view that the rules are unnecessary and too costly. You donate $10,000 to the campaign of Lucinda Snopes, a friend who is running for the legislature. She opposes the pecan law.
Buddy Reeves, the county attorney, reads the label criticizing the new safety regulations. He draws up a complaint against you and against Priscilla's for distributing inflammatory statements in commerce. He instructs the sheriff to seize your products in order to stop distribution of your statement, which the sheriff does. You contact attorney Travis Shifflett and ask him to represent you.
-Refer to Fact Pattern 4-1. The question of whether or not you may attach the label criticizing regulation of pecan products, most significantly affects which of your rights?

• A) Fourth Amendment rights
• B) First Amendment rights
• C) Fifth Amendment rights
• D) rights to equal protection under the law
• E) constitutional right to profits

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Definitions:

Demand Curve

A visual depiction representing the correlation between an item's price and the desired quantity by buyers.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Negative Economic Profits

A situation where a firm's total revenues are less than its total costs, including both explicit and implicit costs, indicating a loss.

Output Level

The quantity of goods or services produced by a company, industry, or economic system at a given time.