Deck 36: Adapting the Law to the Online Environment: The Thorny Issue of Taxing Internet Sales

Question 1

Tour Vista,an online travel company,buys blocks of rooms from Skyview Towers,a hotel in River City,at a wholesale rate.Tour Vista reslls the rooms to consumers at a retail rate.In recent efforts to collect taxes from e-commerce,some cities claim that hotel occupancy taxes should be assessed and remitted directly to the cities based on

A)the dire financial straits of the cities during the latest recession.
B)the retail rates of the rooms.
C)the states of residency of the consumers who reserve the rooms.
D)the wholesale rates of the rooms.

Answer 1

C

Question 2

According to the dissent in Casserlie v.Shell Oil Co. ,an inquiry into a seller's motive in setting prices is necessary to determine if the seller acted

A)in good faith.
B)with the motive of driving competitors out of business.
C)with the intent of making the most profit in the least time.
D)to set commercially unreasonable and discriminatory prices.

Answer 2

A

Question 3

Fleet Feet,an online travel company,buys blocks of rooms from Grande Hotel,a hotel in Hyper City,at a wholesale rate.Fleet Feet reslls the rooms to consumers at a retail rate.One recent effort by cities to collect taxes from e-commerce has focused on

A)hotels that sell blocks of rooms at wholesale rates.
B)non-resident consumers who reserve rooms in in-state hotels.
C)online travel companies.
D)the dire financial straits of the cities during the latest recession.

Answer 3

C

Question 4

New York enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include dismembering or sexually assaulting the image of a human being." On appeal from a challenge by gamemakers,the state asks a federal court to enforce the statute.Based on the decisions of other federal courts in cases involving similar statutes,the court in this case is most likely to

A)refuse to extend restrictions on sex-based content to violence in video games.
B)expand the label's warning to include other forms of violence.
C)impose market-share liability on makers of violent video games.
D)replace the voluntary rating system currently in use.

Question 5

According to the majority in Casserlie v.Shell Oil Co. ,a commercially reasonable and nondiscriminatory price is

A)evidence of a seller's good faith.
B)parol evidence.
C)unconscionable.
D)a requirement for an inquiry into the seller's motives.

Question 6

Fizzical Fitness,a gym,leased its facilites and equipment from Gym Gear Inc.Fizzical agreed to buy towels and other supplies only from Gym Gear at prices set by the seller at the time of delivery.Later,Fizzical filed a suit against Gym Gear,alleging that the prices were set improperly.According to the majority in Casserlie v.Shell Oil Co. ,an inquiry into Gym Gear's motive in setting the prices is not necessary if it acted

A)in good faith.
B)with the motive of driving competitors out of business.
C)with the intent of making the most profit in the least time.
D)to set commercially unreasonable and discriminatory prices.

Question 7

Iowa enacts a statute that requires a label on a video game to warn parents when "the range of options available to a player include killing and maiming the image of a human being." Gamemakers file a suit against the state to block the statute's enforcement.Based on the decision of a California court in a case involving a similar statute,the court in this case is most likely to rule that the statute

A)extends restrictions on sex-based content to violence in video games.
B)violates the First Amendment's guarantee of freedom of speech.
C)imposes market-share liability on makers of violent video games.
D)replaces the voluntary rating system currently in use.