The 8th Circuit affirmed dismissal of a Canadian cigarette maker’s lawsuit accusing Arkansas of violating antitrust laws by levying fees on manufacturers based on how many cigarettes are sold there each year.
Grand River Enterprises Six Nations, along with a pair of wholesale distributors, sued Arkansas after it passed a law requiring certain manufacturers to make payments into an escrow account to offset future Medicaid costs related to smoking.
They alleged the so-called Allocable Share Amendment violated antitrust laws because it forced them to raise prices and prevented them from gaining a competitive advantage over other manufacturers and wholesalers.
“Although these payments may increase the cost of doing business in Arkansas, they do not amount to an antitrust injury,” the St. Louis-based court ruled. The plaintiffs “have not proven that the Allocable Share Amendment amounts to a per se violation of the Sherman Act.”
In the mid-1990s, all 50 states and two U.S. territories sued the country’s major cigarette manufacturers to recover Medicaid costs related to cigarette smoking. They also sought to impose restrictions on the makers’ sales and ad practices. The lawsuits were settled in 1998.
As part of the settlement agreement, manufacturers were banned from targeting youth in their advertising and were ordered to make payments to the states for all future cigarette sales. The states, in exchange, agreed not to file future claims.
The agreement allowed manufacturers who were not parties to the lawsuit to join the master agreement within 90 days, making them exempt from having to make future payments with certain restrictions.
Grand River was not a party to the original lawsuit or the subsequent agreement, and opted not to participate in the master agreement.
But the master agreement allows states - including Arkansas - to enact statutes forcing such non-participating manufacturers to place money into escrow each year to settle future judgments based on the number of cigarettes sold in that state.
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Tobacco InfoTobacco is an annual or bi-annual growing 1-3 meters tall with large sticky leaves that contain nicotine. Native to the Americas, tobacco has a long history of use as a shamanic inebriant and stimulant. It is extremely popular and well-known for its addictive potential.
Nicotiana rustica leaves. Nicotiana rustica leaves have a nicotine content as high as 9%, whereas Nicotiana tabacum (common tobacco) leaves contain about 1 to 3%
A cigar is a tightly rolled bundle of dried and fermented tobacco which is ignited so that its smoke may be drawn into the mouth. Cigar tobacco is grown in significant quantities in Brazil, Cameroon, Cuba, Dominican Republic, Honduras, Indonesia, Mexico, Nicaragua, Sumatra, Philippines, and the Eastern United States.
Tobacco is an agricultural product processed from the fresh leaves of plants in the genus Nicotiana. It can be consumed, used as an organic pesticide, and in the form of nicotine tartrate it is used in some medicines. In consumption it may be in the form of cigarettes smoking, snuffing, chewing, dipping tobacco, or snus.
Cigarettes are smoking products consumed by people and made out of cut tobacco leaves. Cigars are typically composed completely of whole-leaf tobacco. A cigarette has smaller size, composed of processed leaf, and white paper wrapping. The term cigarette refers to a tobacco cigarette too but it can apply to similar devices containing other herbs, such as cannabis.
I tried to stop smoking cigarettes by telling myself I just didn't want to smoke, but I didn't believe myself.
- Barbara Kelly
I kissed my first girl and smoked my first cigarette on the same day. I haven't had time for tobacco since.
To smoke or not to smoke: I can make of either a life-work.
There's a lot of people who, a cigarette is about the only vacation they have.
Good food, good sex, good digestion, good sleep: to these basic animal pleasures, man has added nothing but the good cigarette.
Watching the smoke dance out of a cigarette is like watching a girl dance out of her dress.
Tobacco, divine, rare superexcellent tobacco, which goes far beyond all panaceas, potable gold and philosopher's stones, a sovereign remedy to all diseases.
Coffee and tobacco are complete repose.