Deck 34: Digital Update: Taxing Web Purchases

Question 1

Maria borrows funds through the U.S. Department of Education (DOE) to pay for her education. She defaults on the loan. In some states​

A) ​any of the choices.
B) ​a lien can be placed on the debtor's real property to pay the debt.
C) ​the debt can be collected by garnishment of the debtor's bank account.
D) ​the debtor's professional license can be revoked.

Answer 1

A

Question 2

Beth borrows $10,000 from the U.S. Department of Education to help pay for her education at Community College. She signs a note payable to DOE for the amount of the loan plus interest. The borrower will be considered in default if she fails to​

A) ​any of the choices.
B) ​repay the loan according to the terms in the note.
C) ​graduate from Community College within four years of the loan.
D) ​find employment in her program of study after graduation.

Answer 2

B

Question 3

Lonny borrows funds through the U.S. Department of Education (DOE) to pay for his education. He defaults on the loan. DOE​

A) ​can keep the debtor's tax refund.
B) ​may garnish the debtor's paycheck without a court order.
C) ​might take the debtor's federal benefits.
D) ​any of the choices.

Answer 3

D

Question 4

Apple Pay and other phone-based payment systems enable mobile devices to​

A) ​link from a digital wallet to another app within a single phone.
B) ​entail more security risks than carrying a physical wallet.
C) ​communicate wirelessly with point-of-sale systems.
D) ​work with existing magnetic-strip credit-card machines.

Question 5

Ben defaults on his debt to Credit Loan Company. The creditor obtains a judgment against Ben, who immediately moves to another state. Generally, the judgment will be​

A) ​honored in other states.
B) ​enforced only in the state in which it was obtained.
C) ​appealed.
D) ​revoked.

Question 6

Olivia borrows $25,000 from the U.S. Department of Education to help pay for her education at Public University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be canceled if she is​

A) ​a teacher in a certain school or subject area.
B) ​a military serviceperson.
C) ​a medical technician.
D) ​any of the choices.

Question 7

Robert borrows $15,000 from State College to help pay for his education. He signs a note payable to the school for the amount of the loan plus interest. Robert defaults, and the school transfers the note to a collection agency. This means that​

A) ​additional costs to collect payment can be added to the unpaid principal.
B) ​additional requirements can be imposed on the borrower to graduate.
C) ​none of the choices.
D) ​Robert may have to accept a job offer from a select list of employers.

Question 8

Mobile payment and digital wallet services include Apple Pay, Google Wallet, and Samsung Pay. The ultimate goal of these payment systems is to​

A) ​link from a digital wallet to another app within a single phone.
B) ​entail more security risks than carrying a physical wallet.
C) ​communicate wirelessly with point-of-sale systems.
D) ​work with existing magnetic-strip credit-card machines.

Question 9

Rita borrows $20,000 from the U.S. Department of Education to help pay for her education at State University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be discharged if​

A) ​Rita does not graduate from State University within six years of the loan.
B) ​Rita does not graduate from State University within six years of the loan.
C) ​in bankruptcy, repayment would cause Rita undue hardship.
D) ​any of the choices.

Question 10

Online retailers that have a physical presence within a state must collect state taxes on any Web sales made to residents of that state. Sell2U.com, Inc., an online retailer based in California, pays Tracker Web Services, which is located within New York, to direct traffic to Sell2U.com's site. If Sell2U.com must collect and remit taxes on its sales to New York residents, it is most likely because​

A) ​Sell2U.com's deal with Tracker falls within New York's definition of physical presence.
B) ​Congress has explicitly chosen to tax Internet sales.
C) ​the United States Supreme Court has ruled that a state can compel an out-of-state business to collect and remit state taxes.
D) ​New York requires its residents to self-report their purchases and pay use taxes to the state.

Question 11

Businesses have been required to switch to digital invoices in​

A) ​the European Union.
B) ​the United States.
C) ​countries that host the Association of Financial Professionals.
D) ​the home regions of cloud-based companies.

Question 12

A digital invoice is​

A) ​an electronic version of a paper bill that can be paid online.
B) ​an online view of a paper bill that cannot be paid online.
C) ​a statement for a subscription service that makes B2B payments.
D) ​a supplemental record of a transaction payment.

Question 13

Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. Fleet Feet resells the rooms to consumers at a retail rate. One recent effort by cities to collect taxes from e-commerce has focused on​

A) ​hotels that sell blocks of rooms at wholesale rates.
B) ​non-resident consumers who reserve rooms in in-state hotels.
C) ​online travel companies.
D) ​the dire financial straits of the cities during the latest recession.

Question 14

Hailey, a U.S. citizen, buys John Lennon's piano from Kent, who is in Great Britain. Particularly useful to Hailey, who would prefer to conduct this deal as a secured transaction, is​

A) ​Resale Weekly.
B) ​eBay.com.
C) ​Escrow.com.
D) ​Flippa.com.

Question 15

Fred buys a car from Gina online. To assure that the car is delivered in the condition promised, Fred​

A) ​must trust the seller.
B) ​can use an escrow company.
C) ​must file a financing statement.
D) ​may take possession of different property of the seller as collateral.

Question 16

Deb defaults on her debt to EZ Credit Company. The lender obtains a judgment against Deb, who quickly moves to another state. The judgment is domesticated in Deb's new location. If the lifespan of the judgment lapses before it can be collected, the domestication​

A) ​also lapses.
B) ​may be subject to garnishment.
C) ​can be renewed.
D) ​must be frozen.