Assignment
SEC 575
Vandit Patel

Assignment
SEC 575
Vandit Patel




3. The federal government regulates labels, warranties, and consumer products. Without government regulation, what abuses are likely to occur?

The misuses that are likely to happen without government regulation are more complaints, deaths and allergic effects from not knowing what is in the product. If the government did not control companies then you would have mislabeling. By this I mean you could have items that are marked low fat or low sodium when that is not the case. They would not have to include whether or not it was made with or surrounding peanuts and we all know the consequences of that. Having the government regulate labels, warranties and consumer products is very beneficial to the consumers as they are able to make more educated decisions by knowing what they are selecting.

1. Compare the minimum contacts test, as it is applied to the bricks-and-mortar activity of businesses, to their cyberspace activity. If you were a small business, seeking to sell to customers located in other states, what are some things you could do to avoid having states where these customers live require you to collect sales tax?

Certain of the things you could do to evade having to pay taxes to states where the consumers live are by not getting the benefits from that state. You could also use mail-order catalog sales. If the business only sends the catalog to residents of a particular state that is not sufficient enough to subject the company to the authority of that state and therefore they don’t have to pay the sales tax of that state.

5. The EU has recently changed its trade laws and now refuses, among member nations, to enforce choice of forum clauses when a consumer is a purchaser. How might this refusal to enforce choice of forum clauses impact websites within the EU?

Within the EU, denial to enforce choice of environment clauses will impact the websites by formulating them have to abide by the Brussels I guidelines.