For example, the Complete Auto four-prong test overruled precedent from Spector Motor Service v. O’Connor. The Spector Court held that a state could not apply a tax directly on the privilege of doing business in a state. In Complete Auto, the Supreme Court held that the Spector rule was overly formulistic because it simply looked to see if the text of a statute contained “privilege of doing business” and ignored any practical effect the tax may have. Likewise, the Supreme Court stated that time had stripped the Spector rule of its meaning and any practical significance because it forced courts to ignore “whether the challenged tax produced results forbidden by the Commerce Clause.” In the same way the Spector rule became obsolete, Quill’s physical presence rule is continuing along the same
For example, the Complete Auto four-prong test overruled precedent from Spector Motor Service v. O’Connor. The Spector Court held that a state could not apply a tax directly on the privilege of doing business in a state. In Complete Auto, the Supreme Court held that the Spector rule was overly formulistic because it simply looked to see if the text of a statute contained “privilege of doing business” and ignored any practical effect the tax may have. Likewise, the Supreme Court stated that time had stripped the Spector rule of its meaning and any practical significance because it forced courts to ignore “whether the challenged tax produced results forbidden by the Commerce Clause.” In the same way the Spector rule became obsolete, Quill’s physical presence rule is continuing along the same