BUS205 Fullerton College Central Hudson Test Answers

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Business Finance

Answers must be typewritten on a separate sheet of paper and should be no longer than 3 pages.

Read the following fact pattern and answer the questions.

In the aftermath of 9/11 the U.S. Government has implemented all manner of rules and regulations to protect the public from terrorist acts at large events and likely targets. The Federal Aviation Administration (FAA) has adopted such a rule concerning aircraft near large sporting venues. The FAA rule says no aircraft will fly within 3 miles of a “major sporting venue” during a “major sporting event.” Arrowhead Stadium, in Kansas City, Missouri, is a “major sporting venue.” A Kansas City Chief’s football game is a “major sporting event.” Ben owns an aircraft advertising business where he pulls large advertising banners behind his aircraft during major sporting events. Ben has been in business for 15 years and is well known to local FAA officials as a safe pilot and a good businessman. Ben has been paid $10,000 to pull an ad during a future Chief’s game. The ad says “Ford Trucks, Built Ford Tough! Visit your local Ford dealer today.” Ben asked the FAA for permission to fly over and around Arrowhead Stadium during the December 6th game against the Denver Broncos. The FAA denied Ben permission as it would violate the rule. Ben exhausted his administrative remedies and has now filed a case in U.S. District Court for the Western District of Missouri claiming the rule violates his rights to free commercial speech.

Grammar and Spelling: 5 points

1) Write out the Central Hudson Test the Judge would apply in determining whether the FAA rule is constitutional. (Hint – this is basically a copy the answer down so scoring will be ruthless) (4 points).

For the next question(s), use your legal mind and argue each side. Also try to understand where the other side is coming from and make their argument too.

2a) If you were the lawyer for Ben, apply the Central Hudson Test and write down the arguments you would make to say the rule is unconstitutional (and should be stricken down). (8 Points)

2b) If you were the lawyer for the FAA, apply the Central Hudson Test and write down the arguments you would make to say the rule is constitutional (and should be upheld). (8 Points)