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Stores post that they have the right to inspect packages on leaving, and they have every right to do so to discourage shoplifting.
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Stores absolutely do not have a right to search you against your will upon leaving and they don't have the right to detain you unless an employee witnesses you take something and watches you actually leave the store without paying for that item. Circuit City is guilty of unlawful restraint and will be begging to settle.
The cop is clearly in the wrong, but probably won't lose his job (though I think he should). Maybe this guy can sue the city; not sure though.
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As far as the section of the Ohio law he quotes, it requires disclosure of Name Address and DOB. It does not specify the means of disclosure.
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This should work against the cops.