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Galina-37 [17]
3 years ago
7

Assume that the resort town of Ocean View passed a law imposing an extra tax on boardwalk food businesses that used plastic cups

, plates or utensils. Plastic litter costs the town more to dispose of and it wants to pass this cost on to the merchants. Fran Fries, a boardwalk food vendor, claims that the law is denying her equal protection of the law. Which of the following tests will the court apply in deciding this case?a. Is the law rationally related to a legitimate government interest?
b. Is the law necessary for a compelling state interest?
c. Is the law substantially related to an important government interest?
d. Is the law in violation of the dormant commerce clause?
Business
1 answer:
r-ruslan [8.4K]3 years ago
7 0

Answer:

a. Is the law rationally related to a legitimate government interest?

Explanation:

As a judge, it's your job to understand and apply those rules to any number of legal situations. . Under the rational basis test, a court must determine whether a law is rationally related to a legitimate government interest. If the answer is 'yes,' the law is constitutional and can be applied

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3 years ago
Margaret Lindley paid $15,040 of interest on her $300,400 acquisition debt for her home (fair market value of $500,400), $4,040
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Answer:

$23,160

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6 0
2 years ago
The most recent data from the annual balance sheets of Free Spirit Industries Corporation and LeBron Sports Equipment Corporatio
shutvik [7]

Answer:

Free Spirit Industries Corporation and LeBron Sports Equipment Corporation

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is 1.3337 : 1 and 0.7469 : 1 respectively.

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is 1.6596 : 1 and 0.9294 : 1 respectively.

2. True: Free Spirit Industries Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Corporation.

3. True: A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.

4. True: An increase in the current ratio over time always means that the company’s liquidity position is improving.

Explanation:

a) Data:

Balance Sheet December 31st (Millions of dollars)

LeBron Sports Equipment Corporation   Free Spirit Industries Corporation

                             LeBron   Free Spirit                             LeBron   Free Spirit

Assets                                                        Liabilities

Current assets                                        Current liabilities

Cash                            $1,435      $922     Accounts payable         $0    $0

Accounts receivable      525         338      Accruals                       316      0

Inventories                   1,540         990      Notes payable          1,793   1,687

Total current assets $3,500   $2,250 Total current liabilities $2,109$1,687

Net fixed assets                                          Long-term bond      2,578 2,063

Net plant & equipment 2,750 2,750         Total debt             $4,687 $3,750

                                                                    Common equity

                                                                    Common stock     $1,016     $813

                                                                    Retained earnings   547       437

                                                            Total common equity $1,563  $1,250

Total assets      $6,250 $5,000 Total liabilities and equity$6,250 $5,000

b) Current Ratio and Quick Ratio:

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = (Current Assets - Inventory)/Current Liabilities

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is

Current Ratio = $2,250 / $1,687 = 1.3337 : 1

Quick Ratio = ($2,250 - 990) / $1,687 = 0.7469 : 1

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is:

Current Ratio = $3,500 / $2,109 = 1.6596 : 1

Quick Ratio = $3,500 -1,540 / $2,109 = 0.9294 : 1

5 0
3 years ago
. The income elasticity of demand for medical care is 1.35. This implies that: a. if income decreases by 1%, the quantity demand
Andre45 [30]

Answer:

The correct answer is a).

Explanation:

The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.

If the income elasticity of demand for medical care is 1.35,

<em>a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> TRUE, this is what the definition implies.

<em>b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. </em>FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.

<em>c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care.</em> FALSE. The elasticity relates percentual variations, not absolute value variations.

<em>d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> FALSE. The same as point b.

5 0
3 years ago
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