For example, if a neighbor calls in a kid's lemonade stand, I'm assuming that neighbor has had multiple issues with that family and can't make any headway, so shit just blows up. I'm not saying it's right, but I doubt someone just wakes up and says "HELL NO!" to an 8 year old's 3 hour project on the sidewalk.
Your chances of living next to one of those people are pretty low, but it's a big country, and there are a lot of busybodies just waiting to trounce someones fun.
That's exactly what happens, though. There are busybodies, who missed their true calling as bureaucrats, all over the place.
Second, even when there is "backstory" a lot of it exists only in the mind of that neighbor. I met one of my neighbors when they came over to complain about "all the parties" at my house. The house had been vacant for the eight months I owned it, at least. (I was actually concerned people were using it, but there was no evidence to support it.)
You would have to pay to toss the coin or shoot a can. I think there were various prizes to win such as comic books and candy. None of it for charity this was pure capitalism.
What's funny is we were all little bastards we'd rub the plate with butter to make it slippery and nail down a can or two so it wouldn't move.
But in this case, they're betting distrust of the government has become a motivation within the mainstream.
Is the lemonade stand in some upper class suburb where children should be accompanied at all times?
Are the neighbors busybodies?
Do the neighbors and or town government have a bone to pick with whoever's kids have a lemonade stand?
Is this in a region where calling the authorities over minor transgressions is socially acceptable?
Do the local authorities readily enable this behavior by never using their discretion to not enforce something?
If the answer to the affirmative is all of the above then I think a visit from the authorities is highly likely but most people wouldn't let their kids run an unlicensed lemonade stand in that kind of neighborhood in the first place.
I don't think most jurisdictions even have a license that's applicable to and appropriate for a lemonade stand. It's not like it's a serious commercial operation.