In-state or out-of-state?

• Position: Trends And Transitions - Case of wineries shipping direct - Brief Article

Not more than one minute into the attorneys' oral arguments, the justices started peppering them with questions in front of the packed court room. The question? Can states allow in-state wineries to send their products directly to consumers while prohibiting out-of-state wineries the same privilege?

It's a case that pits the 21st Amendment against the Commerce Clause and it is now in the hands of the U.S. Supreme Court to decide.

The issue arises out of two cases, one in Michigan and one in New York, that challenged the state wine shipping laws. The lawyers representing wine consumers and small wineries argued that the states discriminate against out-of-state wineries by allowing in-state wineries to ship directly to consumers. They invoke the Commerce Clause saying that states cannot protect their own products and interfere with the flow of goods from out of state. Attorneys for New York and Michigan disagreed citing the 21st Amendment as support for allowing states to fully regulate alcohol imports.

The federal appeals courts divided on the issue: one found Michigan's law unconstitutional while...