CMI Court Cases Exam with all Correct & 100% Verified Answers |Actual
Complete Exam |Already Graded A+
1. Scripto, Inc
vs. Carson Facts:
1960 US GA Co. hired independent contractors to solicit sales of TPP in FL on a
Supreme regular basis. No other EEs or oflces in FL. Orders were fulfilled out of
Court
GA. Regular & systematic exploitation of the market.
Decision: The presence of a sales force, independent contractors in
this case, met the constitutional req'mt that there be a minimum
connection or definite link between a state and the person, property or trx
it seeks to tax. Argued both CC & DP clause violations.
2. National Bellas Significance: Remote sellers can have nexus in a state due to the presence of
Hess vs. Illinois employees, agents, or independent contractors within that state.
Dept of
Revenue 1967
US Supreme Facts: OOS retailer sent catalogs to customers in IL by common carrier. The
Court retailer did not have any physical presence in the state.
Decision: Physical presence is needed in order for a state to impose a
collection responsibility for remote sellers. It was determined that IL was
in violation of the DP clause. Record keeping requirements could be
3. Complete Auto diflcult. Mixed due process and commerce clause.
Transit vs.
Brady 1977 Significance: IL was in violation of DP and CC in trying to make them
US Supreme collect tax. Set forth "Bright Line Test" that physical presence was
Court
necessary for collection responsibility.
Facts: TP challenged MS's ability to impose a tax on the privilege of
doing business in the state. They argued the tax violated the CC.
Transported vehicles in MS from rail station to dealerships.
Decision: State taxation of Interstate Commerce is constitutional as long
as:
(1) substantial nexus;
(2) fairly apportioned;
, CMI Court Cases Exam with all Correct & 100% Verified Answers |Actual
Complete Exam |Already Graded A+
(3) non-discriminatory
against interstate
commerce;
, CMI Court Cases Exam with all Correct & 100% Verified Answers |Actual
Complete Exam |Already Graded A+
(4) fair in comparison to services provided by the state.
Fair apportionment consists of internal consistency & external consistency
Significance:
Established 4 Prong test for state taxation of interstate commerce and struck
down "Spector Rule" which said privilege tax violated the CC.
Recognized that, with certain restrictions, interstate commerce may be req'd to
pay its fair share of taxes.
4. National Geo-Facts: TP had an Advertising oflce in CA and made mail order sales to
graphic Society customers in CA from another division that was NOT in CA.
vs. California
BOE 1977
US Supreme Court Decision: The advertising oflce was found to be a suflcient level of presence
for nexus b/c EEs from both divisions were paid by the same corporate
entity. Argued both Due Process and Commerce Clause.
5. United StatesSignificance: Nexus can be established by the presence of employees,
vs. New regardless of their relationship to the sales process.
Mexico 1982
US Supreme Court
Facts: NM imposed GR & Use tax on purchases made by USG Contractors
for projects at DOE facility under "cost plus" contracts. Vendors paid
from USG bank accounts, but the purchases were in Contractor's
name. Contract language con-tained some reference to "agency" for
USG.
Decision: No federal immunity exists merely b/c
-USG bears the economic burden of the tax
-Tax is on use of USG property in private hands
-Tax is paid with USG funds
Tax immunity exists only when the incidence of tax falls directly on the USG or
Agency or Contractor cannot realistically be separated from USG.
Complete Exam |Already Graded A+
1. Scripto, Inc
vs. Carson Facts:
1960 US GA Co. hired independent contractors to solicit sales of TPP in FL on a
Supreme regular basis. No other EEs or oflces in FL. Orders were fulfilled out of
Court
GA. Regular & systematic exploitation of the market.
Decision: The presence of a sales force, independent contractors in
this case, met the constitutional req'mt that there be a minimum
connection or definite link between a state and the person, property or trx
it seeks to tax. Argued both CC & DP clause violations.
2. National Bellas Significance: Remote sellers can have nexus in a state due to the presence of
Hess vs. Illinois employees, agents, or independent contractors within that state.
Dept of
Revenue 1967
US Supreme Facts: OOS retailer sent catalogs to customers in IL by common carrier. The
Court retailer did not have any physical presence in the state.
Decision: Physical presence is needed in order for a state to impose a
collection responsibility for remote sellers. It was determined that IL was
in violation of the DP clause. Record keeping requirements could be
3. Complete Auto diflcult. Mixed due process and commerce clause.
Transit vs.
Brady 1977 Significance: IL was in violation of DP and CC in trying to make them
US Supreme collect tax. Set forth "Bright Line Test" that physical presence was
Court
necessary for collection responsibility.
Facts: TP challenged MS's ability to impose a tax on the privilege of
doing business in the state. They argued the tax violated the CC.
Transported vehicles in MS from rail station to dealerships.
Decision: State taxation of Interstate Commerce is constitutional as long
as:
(1) substantial nexus;
(2) fairly apportioned;
, CMI Court Cases Exam with all Correct & 100% Verified Answers |Actual
Complete Exam |Already Graded A+
(3) non-discriminatory
against interstate
commerce;
, CMI Court Cases Exam with all Correct & 100% Verified Answers |Actual
Complete Exam |Already Graded A+
(4) fair in comparison to services provided by the state.
Fair apportionment consists of internal consistency & external consistency
Significance:
Established 4 Prong test for state taxation of interstate commerce and struck
down "Spector Rule" which said privilege tax violated the CC.
Recognized that, with certain restrictions, interstate commerce may be req'd to
pay its fair share of taxes.
4. National Geo-Facts: TP had an Advertising oflce in CA and made mail order sales to
graphic Society customers in CA from another division that was NOT in CA.
vs. California
BOE 1977
US Supreme Court Decision: The advertising oflce was found to be a suflcient level of presence
for nexus b/c EEs from both divisions were paid by the same corporate
entity. Argued both Due Process and Commerce Clause.
5. United StatesSignificance: Nexus can be established by the presence of employees,
vs. New regardless of their relationship to the sales process.
Mexico 1982
US Supreme Court
Facts: NM imposed GR & Use tax on purchases made by USG Contractors
for projects at DOE facility under "cost plus" contracts. Vendors paid
from USG bank accounts, but the purchases were in Contractor's
name. Contract language con-tained some reference to "agency" for
USG.
Decision: No federal immunity exists merely b/c
-USG bears the economic burden of the tax
-Tax is on use of USG property in private hands
-Tax is paid with USG funds
Tax immunity exists only when the incidence of tax falls directly on the USG or
Agency or Contractor cannot realistically be separated from USG.
