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Business Leaders and the Beverage Industry File Lawsuit Regarding Soda Ban

Trade associations and unions filed a claim to block Mayor Bloomberg’s plan to ban the sale of large-sized sugary sodas at restaurants and other establishments.

The claim, filed by the National Restaurant Association and others, states the Bloomberg-appointed Board of Health didn’t have the right to enable drink-size restrictions.

“We can’t allow decisions like this, decisions that put real jobs at risk,  to be made by skirting the process,” said President of Teamsters Local 812, Ed Webster.

The claim charges that the board bypassed legislative procedure by not going through City Council and went against the “core principles of democratic government.”

Bloomberg proposed the ban on sugary beverages larger than 16 ounces at movie theaters, restaurants, sports arenas and delis to combat obesity. The regulation was anticipated to go into effect March 12.

Bloomberg spokesman Marc LaVorgna argued in a statement that the Board of Health “absolutely” has the power to regulate matters impacting the health of New Yorkers, citing previous complications to the city’s regulation of smoking and calorie counts.

“Not only did those efforts fail, but our policies have been adopted in cities and states across the country,” he stated.

However, soda industry advocates took specific issue with the companies exempt from the ban, such as the 7-Eleven chain of convenience stores, which sell the 40-ounce Big Gulp to customers.

The franchise, along with other similar businesses, did not fall under the ban because they derive less than 50% of their revenue from the sale of food, which in turn makes them regulated by the state.

“The ban is riddled with irrational exclusions, loopholes and random classifications,” said a spokeswoman for the plaintiffs, Caroline Starke.

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Commercial business law is vague umbrella term that covers commerce, consumer transactions, business, and the creation and management of business entities.
Some of the more important parts of commercial business law include negotiable instruments, sales secured transactions, and debtor and creditor law. Commercial business law overlaps, but also emcompasses the formation of new companies. If you need to know more about how commercial business law works or if your business needs to file a lawsuit, feel free to contact us today.