DRTL 2090 Final Exam – comprehensive practice questions with answers and cumulative
revision material
Three Key Priorities - correct answer ✔✔1. Understand the Fundamentals of D.R.
2. Identify D.R. trends
3. Prepare for a career in D.R.
The Nexus Issues History - correct answer ✔✔-Issues with SST (AKA Mainstreet Fairness Act)
+Consumers view it as a "new tax"
+States' Sovereignty (big states don't like this idea, small states did)
+Vendor compensation (3% proposed-credit card fees + 1%)
+Small seller exception
The Nexus Issue - States strike back - correct answer ✔✔-Attributional Nexus: Facilities (owned
or leased), employees, contractors, etc.
-Extended Category Nexus: Agencies, affiliates
-State budgets at the breaking point
-Federal dollars to the states drying up
-Forecast lost in sales tax revenue $240 billion over the next decade
-Multiple states attack affiliate relationships ("Amazon bills")
"Amazon Tax" (Affiliate relationships) - correct answer ✔✔-2008: Amazon agrees to collect sales
tax in NY while going to court
+3/2013: NY highest court rejects Amazon/Overstock.com arguments
+The next supreme court test?
-Illinois tried same approach in 2011. Thrown out of state supreme court in 10/2013.
-2011 California: compromise reached (Sept. 2012 to collect tax).
, "Amazon Tax" (Warehouses = jobs) - correct answer ✔✔-Texas: unusual case. Bill Amazon $269
million in 2011
+Amazon closes warehouse
+Negotiated settlement 4/2012. Began collecting 7/2012
+6/2013 starts hiring 1,000 for Coppel and Haslet warehouses
-Pennsylvania: similar to Texas. Started collecting in 7/2012
-Virginia: Opens two warehouses in 2012 and starts collecting states tax Sept. 2013
-Wisconsin: to open one warehouse in Fall 2014 and collect sales tax Nov. 2013
-Tennessee: unusual approach. Will build 2 warehouses, no tax collected until 1/2014
-North Carolina, Colorado, Minnesotta, Missouri: Amazon closes affiliates
-New Jersey: Took Tennessee's approach. Defer collection to 7/2013
-Connecticut: (Amazon closed affiliates in June 2012): Feb. 2013 agreement to collect sales tax
starting November
+Amazon will build a warehouse
-Florida: 6/2013 deal to build several warehouses and start collecting sales tax
Patent Troll - correct answer ✔✔-Specialized patent-holding firms rep. the largest portion of
patent cases
-Retailers are targeted: expensive litigation for licensing fees, infringement claims
+Texas Eastern District U.S. Court: Home of patent lawsuits- 299 claims in 2010
ICANN - correct answer ✔✔-Generic top level domains consist of
the .com, .info, .net, .org, .biz, .name, .edu, .gov, .mil, .int domains
-2004 added .asia, .jobs, .mobi, .tel, .travel
-2011 added .xxx
-Currently 22 gTLDs in total
revision material
Three Key Priorities - correct answer ✔✔1. Understand the Fundamentals of D.R.
2. Identify D.R. trends
3. Prepare for a career in D.R.
The Nexus Issues History - correct answer ✔✔-Issues with SST (AKA Mainstreet Fairness Act)
+Consumers view it as a "new tax"
+States' Sovereignty (big states don't like this idea, small states did)
+Vendor compensation (3% proposed-credit card fees + 1%)
+Small seller exception
The Nexus Issue - States strike back - correct answer ✔✔-Attributional Nexus: Facilities (owned
or leased), employees, contractors, etc.
-Extended Category Nexus: Agencies, affiliates
-State budgets at the breaking point
-Federal dollars to the states drying up
-Forecast lost in sales tax revenue $240 billion over the next decade
-Multiple states attack affiliate relationships ("Amazon bills")
"Amazon Tax" (Affiliate relationships) - correct answer ✔✔-2008: Amazon agrees to collect sales
tax in NY while going to court
+3/2013: NY highest court rejects Amazon/Overstock.com arguments
+The next supreme court test?
-Illinois tried same approach in 2011. Thrown out of state supreme court in 10/2013.
-2011 California: compromise reached (Sept. 2012 to collect tax).
, "Amazon Tax" (Warehouses = jobs) - correct answer ✔✔-Texas: unusual case. Bill Amazon $269
million in 2011
+Amazon closes warehouse
+Negotiated settlement 4/2012. Began collecting 7/2012
+6/2013 starts hiring 1,000 for Coppel and Haslet warehouses
-Pennsylvania: similar to Texas. Started collecting in 7/2012
-Virginia: Opens two warehouses in 2012 and starts collecting states tax Sept. 2013
-Wisconsin: to open one warehouse in Fall 2014 and collect sales tax Nov. 2013
-Tennessee: unusual approach. Will build 2 warehouses, no tax collected until 1/2014
-North Carolina, Colorado, Minnesotta, Missouri: Amazon closes affiliates
-New Jersey: Took Tennessee's approach. Defer collection to 7/2013
-Connecticut: (Amazon closed affiliates in June 2012): Feb. 2013 agreement to collect sales tax
starting November
+Amazon will build a warehouse
-Florida: 6/2013 deal to build several warehouses and start collecting sales tax
Patent Troll - correct answer ✔✔-Specialized patent-holding firms rep. the largest portion of
patent cases
-Retailers are targeted: expensive litigation for licensing fees, infringement claims
+Texas Eastern District U.S. Court: Home of patent lawsuits- 299 claims in 2010
ICANN - correct answer ✔✔-Generic top level domains consist of
the .com, .info, .net, .org, .biz, .name, .edu, .gov, .mil, .int domains
-2004 added .asia, .jobs, .mobi, .tel, .travel
-2011 added .xxx
-Currently 22 gTLDs in total
