When Bad Frog Brewery,Inc

question 65

Multiple Choice

When Bad Frog Brewery,Inc.,placed a label on its product showing a frog with unwebbed fingers with its middle finger extended,New York State sued to prohibit the use of the label,claiming it to be obscene and claiming an interest in protecting the state's children.The court found

• A) for Bad Frog because children cannot purchase beer, so any exposure would be incidental.
• B) for Bad Frog because the label did not concern an unlawful activity and the state did not prove its interest in protecting children from vulgarity.
• C) for New York State because once the product was purchased, the labels would be exposed in refrigerators or in rooms while children were present.
• D) for New York State because it proved a substantial effort to advance a valid state interest amounting to more than "not merely the removal of a few grains of sand from the beach of vulgarity."

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Definitions:

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Short Run

A period in economics during which at least one factor of production is fixed in quantity; the opposite of the long run, where all factors of production are variable.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Product Differentiation

The strategy of distinguishing a product or service from others in the market to make it more attractive to a specific target market.