Donatella and Domenico Doughnuts are the owners of Panetteria, a fashionable bakery and coffee shop in the town of Sundrench, California, specializing in old-world breads, cakes and pastries. While on their honeymoon several years ago in the Piedmont region of Italy during, they bought their first espresso machine. Their cannoli recipe, which Donatella inherited from her Nonna, is locked in a safe deposit box at their bank. Despite the high cost of commercial leases, the Doughnuts were able to carve out a very comfortable living. They kept overhead low by hiring family members and local teenagers to serve the coffee and pastries. Two years ago, they decided to move to Walla Walla, Washington, and open a second bakery/coffee shop, Panetteria Due. The Doughnuts added a drive-thru at both locations. They expanded their menus to include sandwiches, specialty drinks and salads. La vita era bella.

Last month, in an effort to compete with Starbucks and Panera, the Doughnuts decided the institute a dress code for their employees. Male employees are required to wear G-strings, while female employees are required to wear pasties and G-strings. The G-strings of both, male and female, employees are to match the color of their eyes. The Doughnuts supplied the employee uniforms. The first day of the new uniforms employees reported a marked increase in their tips, despite the number of customers who left due to the scantily clad staff. As the news of the new Panetteria and Panetteria Due spread on social media, the second, third, and fourth day of the new uniforms brought consecutive record-breaking profits. The lines outside both shops went around the block. There was a 45-minute wait for a coffee and a pastry; ninety minutes if you order a cannoli and an espresso. Employees were ecstatic with their increase in tips. On the fifth day, town inspectors shut down the Panetteria. The Doughnuts were served with a cease and desist order from the town. The lawsuit alleges the Doughnuts operate a lewd establishment within the town limits, in an area not zoned for adult entertainment.

The Doughnuts have scheduled a meeting with your boss, Amber Goody-Twoshoes, of Dewy, Cheatem, and Howe, Ltd. Dewy, Cheatem, and Howe, Ltd. Has offices in Arizona, Nevada, California, and Washington. The Doughnuts want to:

• reopen Panetteria,
• sue the town for their lost profits, and the lost tips of their employees,
• head off any potential lawsuits memo pertaining to Panetteria Due.

Attorney Goody-Twoshoes asks you to prepare an internal addressing the following:

1. Can the Panetteria be reopened?,
2. Can the Doughnuts recover their lost profits?,
3. Can the Doughnuts recover the lost tips on behalf of their employees?
4. Did the town ordinances violate the right to employees right to free expression under the First Amendment of the U.S. Constitution?