Which of the Following Will Not Create Minimum Contacts in a State

question 46

Multiple Choice

Which of the following will not create minimum contacts in a state sufficient to find personal jurisdiction on an out-of-state defendant?

• A) A company maintains a website that provides information about its products and that provides an address or number that a customer can contact to obtain an order form to purchase products directly from the company.
• B) A company maintains an office in the forum state that is manned once a week by employees.
• C) A company sends sales personnel into the forum state to conduct business but does not maintain an office within the forum state.
• D) A company maintains no physical office within a state and does not send sales personnel to the state to conduct business, but it target advertises in the forum state, providing special products and discounts for the forum state's residents.

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Definitions:

Average Tax Rate

The average tax rate is the proportion of total taxable income paid in taxes, calculated by dividing the total tax paid by the total income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed.

Lump-Sum Tax Rate

A tax that is a fixed amount, no matter the change in circumstance of the taxed entity. This creates a situation where the tax burden falls more heavily on those with lower income or profit.

Marginal Tax Rate

The amount of tax applied to an additional dollar of income, often used in progressive tax systems.