Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 12

Arkansas is primarily a rural state, and in many areas there, it is not feasible to employ cable television. Arkansas imposes a tax on sales and services, and cable television service was added to the list of taxed enterprises. No tax, however, was imposed on satellite television service. The cable companies claimed there was a denial of equal protection by taxing them but not satellite transmission of television. Are they correct? Why or why not? [ Medlock v Leathers, 842 SW2d 428 (Ark)]