Reference no: EM132249401

Oscar moves into the Balboa Towers neighborhood (a residential community for individuals over age 50) and opens a lemonade stand in front of his house. The lemonade stand is an instant success and thirsty customers come from all over the county to sample Oscar’s lemonade. There are long lines down the sidewalk and increased traffic through the streets due to Oscar’s booming business. Part of the reason for the lemonade stand’s success is that Oscar advertises his “skinny lemonade” as a special weight loss tool. Oscar’s advertisements claim that studies show that people who drink his lemonade lose an average of 5 pounds a day, up to a total of 100 pounds (when the lemonade is consumed for 20 days straight) without exercising. The town of Balboa sends Oscar a notice that they plan to shut down his lemonade stand. He comes to you for advice. He wants to know: (1) does the town have the authority to shut down his business? Why or why not? (2) is there any way he can continue operating his lemonade stand? If so, how? Also, Oscar has recently gotten a letter from some government agency (he can’t remember which one) that said he can’t continue running his lemonade ads. He wants to know: (3) What government agency has authority over Oscar’s advertising? (4) Can the government really stop him from advertising his lemonade? Why or why not? In your answer include: the specific common law, rules, statutes or other legal precedent involved, define the law/rule/statute/precedent at issue and explain how it applies to Oscar’s situation.