Xerox Corp

question 27

Multiple Choice

Xerox Corp.manufactured parts for copy machines in the U.S.that were shipped to Mexico for assembly.The copiers were designed to be sold to Latin America and did not operate on U.S.electric current.The copiers after assembly were kept in U.S.customs warehouses pending sale to Latin America.These goods were free of import duty by federal law.The city of Houston,Texas,assessed these copiers with a local property tax.Xerox sued to have this tax declared unconstitutional.The court decided:
I.That Xerox must pay all this tax because state/local governments have taxing powers just like the U.S.
II.That Xerox must pay only one-half since state/local governments are one-half partners with the federal government.
III.That this law is preempted by federal law.

• A) I only.
• B) II only.
• C) III only.
• D) Both I and III.

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Definitions:

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