The answer is Pennsylvania. Milady states directly that "Pennsylvania and New Jersey forbid booth renting by law" — both states ban the booth-rental business model entirely, not just regulate it.
Booth rental (where a barber leases a chair/station rather than working as an employee) is legal and common in most states, including Texas — this question is really testing whether you know it isn't universal. New York, Vermont, and South Dakota (the other choices) don't share Pennsylvania and New Jersey's outright ban.
Milady Standard Barbering, 6th ed., Ch. 19, p. 740: "Pennsylvania and New Jersey forbid booth renting by law."
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