CANNAINVESTOR Magazine U.S. Privately Held April / May 2019 | Page 93

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Consequently, at the federal level, Bart Street stands alone in its conclusion. Most federal courts that have faced the question either reject outright the illegal contract defense in states that have legalized recreational cannabis or otherwise take a far more circumspect approach to its application than did the Bart Street court. Nevertheless, in drafting contracts touching upon the manufacturing and distribution of recreational cannabis, it is important to remember that this is far from settled law, as states that have legalized recreational cannabis use remain in the minority nationwide.

17 2016 WL 6473215at *4 (N.D. Cal. Nov. 2, 2016).