Brown-forman Distillers Corp. v. New York State Liquor Authority (476 U.S. 573)

U.S. Supreme Court · decided June 3, 1986 · Supreme Court Database (Spaeth)

Citation
476 U.S. 573 · 106 S. Ct. 2080
Decided
June 3, 1986
Term
October Term 1985
Vote
5–3
Majority author
Justice Marshall
Issue area
Economic Activity
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Liberal
Constitutional ruling
State/territorial law held unconstitutional

Opinion excerpt

Justice Marshall delivered the opinion of the Court. The State of New York requires every liquor distiller or producer that sells liquor to wholesalers within the State to sell at a price that is no higher than the lowest price the distiller charges wholesalers anywhere else in the United States. The issue in this case is whether that requirement violates the Commerce Clause of the Constitution. I New York extensively regulates the sale and distribution of alcoholic beverages within its borders. The State’s Alcoholic Beverage Control Law (ABC Law) prohibits the manufacture and sale of alcoholic beverages within the State without the appropriate licenses, ABC Law § 100(1) (McKinney 1970), and regulates the terms of all sales, §§101-a to 101-bbb (McKinney 1970 and Supp. 1986). Distillers and their agents may not sell to wholesalers in New York except in accordance with a price schedule filed with the State Liquor Authority. § 101-b(3)(a). The distiller or agent must file the price schedule before the 25th day of each month, and the prices therein become effective on the first day of the second following month. The schedule must contain a precise description of each item the distiller intends to sell, and a per-bottle and per-case price. All sales to any wholesaler in New York during the month for which the schedule is in effect must be at those prices. This litigation concerns…

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