Under PL 86-272, Which of the Following Transactions by Itself Would

question 17

Multiple Choice

Under P.L. 86-272, which of the following transactions by itself would create nexus with a state?

• A) Having a sales employee inspect customer's inventory for specific product lines.
• B) Using a manufacturer's representative for the taxpayer through a sales office in the state.
• C) Executing a sales campaign using an advertising agency acting as an independent contractor for the taxpayer.
• D) Maintaining inventory in the state by an independent contractor under a consignment plan.

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Definitions:

United Nations Convention

A formal agreement or treaty developed and adopted by member states of the United Nations on various global issues.

Proposal

A formal offer or plan put forward for consideration or discussion by others.

Obligations

Duties or commitments imposed by law, contract, or one's conscience.

Governmental Contracts

Legal agreements between government entities and private parties or other government agencies, primarily for the procurement of goods, services, or construction.