10-1986 Girl Scouts of Manitou Council, Inc., v. Girl Scouts of the United States of America, Inc.

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“The national organization argues that the statute is inapplicable to nonprofit entities, such as it and the Manitou council. The reference to ‘commercial symbol[s]’ and to ‘the business’ of offering, etc., goods and services provides some support for the argument, since one doesn’t usually think of nonprofit enterprises as being ‘commercial’ and engaged in ‘business.’ Or didn’t use to—for outweighing these hints is the fact that nonprofit enterprises frequently do engage in ‘commercial’ or ‘business’ activities, and certainly the Girl Scouts do. Proceeds of the sale of Girl Scout cookies are the major source of Manitou’s income. The local councils sell other merchandise as well. Sales of merchandise account for almost a fifth of the national organization’s income, and most of the rest comes from membership fees and thus depends on the success of the local councils in recruiting members; that in turn depends on the councils’ revenues and thus gives the national organization an indirect stake in the cookie sales. The national organization describes its reorganization of the local-council structure as ‘a key component’ of its ‘Core Business Strategy.’ From a commercial standpoint the Girl Scouts are not readily distinguishable from Dunkin’ Donuts.”

Affirmed in part, and Reversed in part.

10-1986 Girl Scouts of Manitou Council, Inc., v. Girl Scouts of the United States of America, Inc.

Appeal from the United States District Court for the Eastern District of Wisconsin, Stadtmueller, J., Posner, J.

TAGS: 7th Circuit Digest

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