As far as food is concerned, externalities are not needed in order to justify public health rules. Expired food doesn't affect anyone other than the person who eats it, yet it's illegal. And if that person gets sick, he has the right to sue the restaurant for using expired food. Given that we are talking about California, I can see the relatives of some guy who liked to eat deep fried stuff at fast food restaurants and eventually died of blocked arteries, suing the whole state of California and Arnold himself