Interesting teaching case

On ZIEFBRIEF from the University of San Francisco's Dorraine Zief Law Library, "Ban on Using 'Library' in Business Name".

The NY Times' Diner's Journal reports on an interesting New York law that prohibits including the words "library, school, academy, institute," and other words in a business name, unless the state [Board of Regents] consents to the proposed business name.  A new business owner wanted to name his store "The Chocolate Library," but the state's Education Department nixed the proposal because it believed the proposed name was misleading.  I'm trying to imagine how the general public could be misled by a store named "The Chocolate Library."  Would consumers imagine that they would walk into a library constructed entirely of chocolate, sort of like Homer Simpson's "Land of Chocolate" daydream?  Would they perhaps imagine that all of the chocolate in the store could be borrowed rather than purchased?  Or that the chocolate would be organized according to the Dewey Decimal System?  It seems like a decision worth reconsidering.

Are there legal (vice policy) challenges to this decision available? It's an administrative law question - a decision by the executive branch delegated by the legislature. Is a hearing required? Expert testimony?  There is a federal parallel: New schools may not use the .edu top level domain (TLD) until they receive at least provisional accreditation from the appropriate accrediting body. (My business cards still show my email address as "@phoenixlaw.org".) However, the federal restriction is not descretionary. This could be an interesting and entertaining discussion problem. EMM