A statute in State X creates the Board of State Parks. Among other things, the law empowers the Board to issue permits for concession stands for sale of soft drinks and snacks to visitors to the state parks. Five years ago the Board issued a permit to Trey's Oasis to operate a concession stand in Johnakka State Park in accordance with the park rules and regulations. The handbook of rules and regulations for the park at that time stated that only one concession stand would be permitted in the park. Last year Trey K. Rattee, operator of Trey's Oasis, spent $10,000 to provide a covered area with comfortable chairs for park visitors who stop by for refreshments. Now Mr. Rattee has learned that the Board intends to issue a permit for another refreshment stand to operate in the park. Believing the competition will have a serious economic impact on his business, Rattee has hired a lawyer to challenge the proposed issuance of the new permit as being in violation of the stated rules of the park. The Board has responded that the rules and regulations for the park that are incorporated into the handbook were not adopted pursuant to notice-and-comment and therefore are not legally binding "regulations."

Discuss how you think a court would rule on this controversy. What reasons should the court advance for its ruling?

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