. Reacting to the massive recall of the potentially contaminated eggs from major
ID: 418295 • Letter: #
Question
. Reacting to the massive recall of the potentially contaminated eggs from major egg producers in Iowa, the California legislature passed a law prohibiting the sale of eggs within the state of California that are not obtained from egg laying chickens raised and caged in accordance with “humane standards” set by the California Department of Agriculture. Total Eggs is a major egg producer in the state of Iowa selling close to two billion eggs annually throughout United States. Total Eggs does not meet the standards passed by the California Department of Agriculture, and has recently been cited by federal health inspectors for violations of federal sanitation standards. 40% of Total Eggs' sales are to purchasers within California. Total Eggs claims it will lose millions of dollars in profits and its business will be substantially harmed by the California legislation. Total Egg claims that the California law is designed to protect California egg producers from out-state competition. Total Eggs has filed a lawsuit in the federal district court in California seeking to have the California law declared void as both a violation of the dormant Commerce Clause and the Equal Protection Clause. You are the judge. How do you decide? Thoroughly explain your answer.
Explanation / Answer
Once a law is designed and announced by the state governments or central governments, one must obay the rules and regulations. Here, in this context, Total Eggs must follow the regulations prepared by the government. Especially, when it comes to food items and suppliers, they must follow these, otherwise the health of public will disturb and creates many problems to public. In this regards, as a judge I insist Total Eggs to follow the regulations given by Federal health inspectors. There is no violatioin is accepted here.
When it comes to competition, all the firms and producers, who are not producing contamnated eggs, all they were stop the production and sale of eggs in California, and similarly Total Eggs too. Untill, they covered the mistake and starts good production, I announce the same and stop the sales of Total Eggs in the state.
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