THE CONFLICTED STATE OF NORTH AMERICAN CANNABIS CONTRACT LAW

Authors

DOI:

https://doi.org/10.14210/nej.v28n1.p94-115

Keywords:

Cannabis, American Cannabis contracts, USA

Abstract

Contextualization: The American law regarding the sale and consumption of Cannabis is quite conflicted. Federal law completely prohibits its sale under the Controlled Substances Act of 1970. Despite this criminalized treatment, many states have "legalized" marijuana and even licensed businesses to sell it. A large industry has grown quickly to sell this type of product. However, these companies are openly violating federal law. This violation triggers numerous legal problems for these businesses, including in the areas of taxes, insurance, and basic legal functions.

Objective: This article aims to explore the effect of this conflict of laws (between federal law and state law) and the complex implications of maintaining and enforcing American Cannabis contracts that violate federal law.

Methodology: The present research uses the inductive method, employing the analysis of judicial decisions and the literature review.

Results: This article argues that when the public policy behind the legalization of marijuana is weighed against federal prohibition, a court should consider that the enforceability of these contracts should be supported by the stronger policy. Therefore, contracts involving marijuana-related businesses should be enforced even if they violate the Federal Controlled Substances Act.

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Author Biography

Luke Scheuer , Widener University Delaware Law School

Professor Associado de Direito na Widener University Delaware Law School. Membro do corpo docente do Instituto de Delaware de Direito Corporativo e empresarial. Pesquisador nas áreas de Direito da Cannabis, Direito corporativo e responsabilidade profissional. ORCID: https://orcid.org/0000-0002-5821-4525.  E-mail: lmscheuer@widener.edu 

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Published

2023-04-26

How to Cite

SCHEUER , L. THE CONFLICTED STATE OF NORTH AMERICAN CANNABIS CONTRACT LAW. Journal of Law Studies, Itajaí­ (SC), v. 28, n. 1, p. 94–115, 2023. DOI: 10.14210/nej.v28n1.p94-115. Disponível em: https://periodicos.univali.br/index.php/nej/article/view/19446. Acesso em: 19 dec. 2024.

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