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The U.S. Supreme Court case Idlewild Bon Voyage Liquor Corp. v. Epstein et al., 1961, revolved around a dispute over the sale of liquor at airports to passengers departing for foreign destinations. The Idlewild Bon Voyage Liquor Corporation operated a duty-free shop at New York's Idlewild Airport (now JFK) and was sued by the State Liquor Authority for selling alcohol without a license in violation of state law. The corporation argued that their sales were exempt from state regulation as they were part of international commerce due to being sold to passengers leaving the country. However, the court ruled against them stating that while Congress has exclusive control over foreign commerce, it does not prevent states from exercising concurrent power unless there is an explicit federal policy or legislation prohibiting it which was absent in this case. This decision upheld New York’s right to regulate such sales under its general police powers and established precedent on how far states could go in regulating businesses involved with interstate or international trade when no specific federal laws exist governing those activities.
In the dissenting opinion for Idlewild Bon Voyage Liquor Corp. v. Epstein et al., Justice Harlan argued that the majority's decision was a misinterpretation of the Twenty-first Amendment and an overreach of federal power into state jurisdiction. He contended that New York State had every right to regulate liquor sales within its borders, including at international airports like Idlewild (now JFK). The fact that these sales were duty-free did not exempt them from state control, as they still occurred physically within New York territory and could therefore be subject to local laws. Furthermore, he disagreed with the majority's assertion that such regulation would interfere with foreign commerce or diplomacy; rather, it was simply a matter of enforcing public health and safety standards on alcohol consumption.