Author Question: Companies that do business online can find themselves in legal trouble if they commit a crime, ... (Read 61 times)

cartlidgeashley · **on:** Jul 7, 2018

Companies that do business online can find themselves in legal trouble if they commit a crime, breach a contract, or engage in a tortious action. In about 200 words, provide an online business example of each offense. As part of your answer, explain why you believe each action you describe is either a crime, a breach of contract, or a tort

Question 2

In a paragraph, outline the differences between income taxes and transaction taxes.

succesfull · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

A breach of contract case follows:
People's Liberation, Inc., the designer and distributor of high-end casual apparel under the brand names People's LiberationR, William RastR and J. LindebergR, today announced that it filed suit in Los Angeles Superior Court against Charlotte Russe Merchandising, Inc. for breach of a written contract and tort recovery seeking over 60 million in compensatory damages.
The suit alleges that Charlotte Russe approached People's Liberation in 2008 to exclusively license the People's Liberation Brand in the United States and all of Central and North America. To induce People's Liberation to stop providing its premium denim, knit and accessory products to fine department stores such as Nordstrom, Saks Fifth Avenue, and Neiman Marcus, Charlotte Russe executed a multiyear contract in December 2008 that guaranteed minimum purchases of product during the first three contract years of 65 million.
The complaint alleges that Charlotte Russe, without justification or legitimate reason, terminated its contract with People's Liberation within the first year of the relationship. This termination occurred shortly after Charlotte Russe was purchased by the private equity firm of Advent CR Holdings, Inc. The complaint further alleges that Advent CR Holdings, Inc., its parent Advent International Corporation, and Charlotte Russe's management wanted to take the company in a new direction and, in doing so, they were prepared to ignore prior contractual obligations.

Answer to Question 2

Income taxes are levied by national, state, and local governments on the net income generated by business activities. Transaction taxes, which include sales taxes, use taxes, and excise taxes, are levied on the products or services that the company sells or uses. Transaction taxes are also called transfer taxes because they arise when the ownership of a property or service is transferred to from one person or entity to another.