in the states, when you got to restaurants or bars they have this sign, "We reserve the right to refuse service to anyone."
If it is a private club or exclusive restaurant, i believe they can do that. We won't really know the legality of Paseo's move until somebody makes a big fuss about it and file a case in court but I don't think that won't happen. So until then, their decision to stand to ban frat members will stand.



