Case 11.1
Janet is a successful Colorado entrepreneur and has recently decided to open a
recreational marijuana sales business in Denver, “High and Mighty.” The state and
county require operators of such businesses to acquire a license, hold a public meeting
coordinated with the local and state license board, and other special procedures for this
new and highly regulated enterprise. One holiday weekend, Detective Jones stops in
and informs Janet that he is conducting a surprise inspection of the business to
determine if Janet is complying with state record-keeping laws and other rules ensuring
that minors are not being permitted to purchase the recreational marijuana. Janet has
never been the subject of such a search and is concerned the detective’s presence will
scare away customers. There are 20 customers in line, waiting to purchase recreational
marijuana. Detective Jones enters the store over Janet’s objection and despite her
request that he produce a search warrant. He enters her office and reviews her
paperwork relevant to state record-keeping laws. He notes several irregularities and
documents them. When Detective Jones returns to the sales area, he finds that Janet and
her staff have continued to serve customers while he was in the office. Detective Jones
checks the ID of several people who have made purchases and finds that two of them
are under age under state law to purchase marijuana. While Detective Jones is checking
IDs, one of the patrons (Bobby) waiting to buy marijuana says, “Man, I can”t believe
this guy is giving us such a hard time. What a bummer!” Detective Jones directs this
man to empty his pockets on a nearby table and finds he has cocaine. Detective Jones
arrests Bobby for possession of cocaine, cites Janet for violating state law for poor
record-keeping and charges her with providing marijuana to underage patrons.
Did the search of Janet’s business records meet the three requirements for authorizing
inspections without search warrants of closely regulated businesses as established by
the U.S. Supreme Court in New York v Burger?
a. Yes, there was a ‘substantial” government interest and Detective Jones’ inspection was
necessary to further the Colorado “regulatory scheme.”
b. No, business records are not covered under such a search, just marijuana.
c. No, the search did not advance the government interest embodied in the law.
d. Yes, the Sixth Amendment does not apply to a commercial enterprise only personal
residences.