Problem:
The State of Organic recently adopted new milk safety standards that are stricter than any other state in the United States. The standards are designed to assure the safety of the milk supply and protect the health of adults and children who consume milk. The standards have been scientifically proven to make the milk supply 9% safer than the milk safety standards used by other states and as a result fewer people drinking the milk will suffer adverse health effects. The new standards also create and impose an expense on companies that sell milk in Organic. Estimates suggest that compliance with the new standards will cost companies that sell milk in Organic $50,000,000 a year. 20% of the milk sold in Organic originates out-of-state. Therefore, $10 million of the financial burden will fall on out-of-state companies. A lawsuit is initiated by a GMO Milk, a large Milk company located outside the State of Organic. GMO Milk sells thirty percent of its milk in Organic. GMO's lawsuit claims that Organic's new milk standards violate the Dormant Commerce Clause. What result and why? References/citations.