1. In this case, the parties eventually settled, and Dr. Lee went on to run the

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1. In this case, the parties eventually settled, and Dr. Lee went on to run the Google China initiative. If you were running Microsoft, what would you have done differently in this situation?
2. Considering that this is a common scenario, how do you recommend companies to respond in the future?
Read the case study on pp. 345-346 of the textbook and answer the following questions:
3. Based on the standards articulated in the case summary, should the state be allowed to impose a use tax on Quill even though it does not have a physical presence in the state?
4. Is this the right decision? Should a state be able to impose income taxes on a company whether or not it has a physical presence, as the state supreme court held? Or was the U.S. Supreme Court correct?

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