That was the same argument they were trying to use for manufacturing, except we are now using it for gunsmithing. Both are licensed activities for the purposes of the BATFE.
The GCA established the FFL system, in which a gunsmith requires an FFL with the exception of an individual. The entire precedent established here that is of concern is that shared equipment rented by an organization can be seen as subversive to the GCA. Since there is no explicit statement from the ATF regarding gunsmithing, enforcement will look to precedent. Whomever is looking at this could argue it one way or the other, but the ATF tends to lean toward the more restrictive side when it comes to licensing involving an organization and this precedent doesn’t help us.
Do you know how precedent is used? The precedent here was that when evaluating a similar situation that came up, in this case the only difference being manufacturing versus gunsmithing both of which are licensed operations, the BATFE decided that just because the business wasn’t involved in the actual work, they rented the tools and made a business of doing so and thus needed to be licensed.
The point of precedent is that it is looked to when evaluating similar cases, but those that are not yet explicitly defined (edge cases, extenuating circumstances, etc), they look for what has already been evaluated and try to find the meaning of the rulings in addition to whatever is there verbatim. The precedent here is that the BATFE doesn’t care if it’s an individual using the machine, but that a business got involved by renting them the machine for the purpose.
Any enforcement proceeding looking at us is going to look at prior rulings for guidance, and ask why if manufacturer on shared equipment cannot avoid licensing why is gunsmithing any different?
This is what is referred to as Persuasive Precedent; it’s not binding, but it is looked to by whomever ends up evaluating if what DMS is doing is within the confines of the law since there is not an explicit ruling particular to gunsmithing. Sure, we could win in an eventual fight but it’s not something DMS could afford to be the test case for.
This analogy doesn’t make any sense here. The problem is more akin to that of laws regarding cellphone use while driving versus a ham radio.
The laws were written such that CB radio was exempted, but it did not explicitly call out amateur (ham) radios. When electronic devices became illegal in certain jurisdictions to use on public roadways, courts had to settle the case law when they started getting situations with amateur radio operators being ticketed. They looked to the precedent established with CB radios, and even though the systems were not the same nor used for the same purpose, it was overall a similar enough case that they applied the CB laws to amateur radio operators granting them the exemption.
Name’s not Tom, but that Tl;Dr was meant more as for the entirety of my arguments thus far and the situation we are have, including background; not a specific post.