Public Law 86-272 Scenarios Quiz

Midstream Metals, headquartered in Texas, pays sales staff who work from home offices in Ohio, only soliciting orders for tangible goods.

• Yes - Protected under PL 86-272

• No - Not Protected

Novella Gifts, a Texas catalog seller, sends reps to Connecticut who both solicit orders and offer gift wrapping and customer service after the sale.

• Yes - Protected under PL 86-272

• No - Not Protected

LustreTech, based in Texas, operates a sample room in Missouri year-round, even though they don't stock inventory.

• Yes - Protected under PL 86-272

• No - Not Protected

JetCast Audio, based in Texas, sends reps to Georgia who not only solicit sales, but also perform on-site equipment setup and troubleshooting.

• Yes - Protected under PL 86-272

• No - Not Protected

Tropic Tile, based in Texas, sends reps to visit retail stores in Nevada, distribute samples, and encourage reorders. Orders are approved in Texas and shipped via common carrier.

• Yes - Protected under PL 86-272

• No - Not Protected

Solara Paper, based in Texas, sells only tangible personal property in Nebraska. Its only in-state activity is sales reps soliciting orders, which are approved and shipped from Texas.

• Yes - Protected under PL 86-272

• No - Not Protected

SmartFlo Plumbing, a Texas business, installs purchased faucets and provides a one-day training on site in Oregon.

• Yes - Protected under PL 86-272

• No - Not Protected

PixelGear, a computer parts seller, mails catalogs to customers in Utah and takes phone orders. All orders are approved and fulfilled from Texas.

• Yes - Protected under PL 86-272

• No - Not Protected

Alpha Devices sends a team to Minnesota to collect delinquent payments and negotiate payment plans with customers.

• Yes - Protected under PL 86-272

• No - Not Protected

EchoWrap Inc., a Texas-based business, sends reps to Arizona who carry promotional brochures and submit customer orders electronically for approval out of state.

• Yes - Protected under PL 86-272

• No - Not Protected