06 / APPLY WHAT YOU LEARNED

Study guides

Learn the terms, apply the concepts, and plan a checkout for Northwoods Supply.

Study Materials

Complete the two guides in order. Each follows a worksheet format and has a rubric worth 100 points. Use the lessons and resources as you work.

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STUDY GUIDE 1 · 100 POINTS

Study Guide 1: E-commerce tax basics

Complete the terminology warm-up by either method, match all eight scenarios, and answer three questions in your own words.

Part A: Terminology warm-up

15 points

Find ten terms in the grid. Select the first and last letter using two clicks or taps. With a keyboard, use arrow keys to move and Enter or Space to select each endpoint. Words run horizontally, vertically, or diagonally in either direction. Spaces are omitted. On a narrow screen, scroll the grid sideways or use the definition alternative.

Equivalent alternative: identify the terms from the definitions below. Choose either method for full credit; doing both does not add points.

Words to find

Nexus
Sales tax
Use tax
VAT
Customs
Income tax
Marketplace
Wayfair
Economic nexus
Transaction tax

Use the definition alternative · Skip to scenario matching

0 of 10 terms found.

Use the definition alternative

Enter a term from the word list for each definition. Answers ignore capitalization and spaces.

1. A connection between a business and a taxing jurisdiction.

2. A tax collected on a taxable sale by a seller with a collection duty.

3. A complementary tax a buyer may owe when applicable purchase tax was not collected.

4. A consumption tax collected through stages of the supply chain.

5. The border process involving imported goods and possible duties.

6. A tax generally related to taxable earnings.

7. A platform through which third-party businesses sell to customers.

8. The 2018 Supreme Court case rejecting the physical-presence requirement for sales-tax collection.

9. A connection arising from a state’s specified level of economic activity.

10. A broad term for a tax associated with an exchange or sale.

Part B: Scenario matching

40 points

Match each situation to the single best concept. Drag a concept onto a scenario, or use its dropdown menu. Dragging is optional. Each correct match earns 5 points.

Economic nexus
Sales tax
Use tax
Marketplace sales
VAT
Customs duties
Interstate sales
International sales

A seller has no physical presence in a state but reaches that state’s economic sales threshold.
A retailer with a collection obligation adds the applicable tax to a taxable order at checkout.
A Wisconsin business buys taxable equipment for its own use and the seller collects no applicable purchase tax.
A platform collects tax on a covered sale made by a third-party seller.
A business accounts for a consumption tax at stages of the supply chain and eligible tax paid on business inputs.
A shipment entering a country is assessed a charge based on customs classification and applicable import rules.
A Wisconsin store ships a tent to Minnesota and investigates the destination state’s requirements.
A U.S. retailer prepares to sell to customers in France and reviews foreign tax and import requirements.

Part C: In your own words

45 points

Use complete sentences and specific examples. Your instructor evaluates these responses; they are not automatically graded.

1. Explain the difference between sales tax and use tax. Give an example that shows when each may apply.

2. What is economic nexus, and why did South Dakota v. Wayfair make it important for online sellers?

3. Describe two specific ways tax requirements could affect a checkout you build. Explain what the developer implements and what the business or tax professional must decide.

Study Guide 1 evaluation

100 points available. Earned points equal the percentage grade.
Criterion	Points	How points are earned
Part A: Terminology	15	1.5 per correctly found term or correctly identified definition. Count each term once across both methods.
Part B: Eight scenarios	40	5 per correct match; 0 for an incorrect or unanswered match.
Part C: Sales and use tax	15	5 for explaining sales tax; 5 for explaining use tax; 5 for an accurate example showing the distinction.
Part C: Nexus and Wayfair	15	5 for defining economic nexus; 5 for explaining the change to the physical-presence requirement; 5 for connecting it to state-specific monitoring by an online seller.
Part C: Checkout application	15	5 for each of two specific checkout effects; 5 for separating implementation work from business or professional tax decisions.
Total	100	Add the earned points to calculate the percentage.

For each 5-point written-response criterion: 5 = accurate with explanation; 3 = relevant but incomplete; 1 = mentioned without explanation; 0 = missing or incorrect. Automated checks cover 55 points. An instructor evaluates the other 45. Example: 15 + 35 + 39 = 89%.

STUDY GUIDE 2 · 100 POINTS

Study Guide 2: You’re the web developer

Part A: Client questions

60 points

Answer all six questions in about 3–5 sentences each. Connect your reasoning to the client’s plans; do not simply list vocabulary.

1. What tax issues should Northwoods investigate before selling nationwide?

2. What information might checkout need to determine the appropriate tax?

3. Why could economic nexus become important as sales increase?

4. How might selling through a marketplace change collection?

5. What should the company investigate before international sales?

6. Which decisions belong to the developer, the business, or a tax professional?

Part B: Build a checkout fragment

30 points

Write a small semantic HTML checkout fragment in the field below or in a separate HTML file. It must include: labeled shipping-country, region, and postal-code controls; an order summary with separate subtotal, shipping, tax, and total; and a tax-status message region. Use placeholders, not invented tax rates.

Then write JavaScript or clear pseudocode for an address change: request a recalculation from a server, update the summary and status on success, and preserve the cart with a useful message on failure. Do not put a real API key, customer information, or tax threshold in the code.

HTML and JavaScript / pseudocode

Test plan: give inputs/actions and expected results for a destination change, an API failure, and keyboard use.

Part C: Research trail

10 points

Cite two authoritative sources with title, clean URL, access date, and a sentence explaining which project decision each source informs.

Study Guide 2 evaluation

100 points available. The instructor evaluates accuracy and reasoning.
Criterion	Points	Required evidence
Nationwide tax issues	10	5: identifies relevant obligations; 5: explains state-by-state investigation.
Checkout information	10	5: identifies location, product, and channel inputs; 5: explains their role in approved calculation.
Nexus	10	5: explains economic nexus; 5: proposes state/period monitoring without a nationwide threshold.
Marketplaces	10	5: explains facilitator collection; 5: distinguishes remaining direct-sales and business duties.
International issues	10	5: distinguishes VAT and customs; 5: explains country-specific verification and responsibility for charges.
Professional boundaries	10	5: assigns legal decisions to business/adviser; 5: assigns implementation and escalation to developer.
Checkout fragment	30	5 each: associated labels and semantic controls; four distinct totals; accessible status feedback; server recalculation on address change; safe failure handling; three tests with actions and expected results.
Research trail	10	5 per source: 1 for authoritative and relevant source; 1 for title; 1 for URL; 1 for access date; 1 for explaining its use.

For each 5-point criterion in Parts A and B: 5 = accurate, complete, and applied; 3 = mostly correct with a meaningful omission; 1 = relevant attempt with major gaps; 0 = absent or incorrect. Part C uses the five listed 1-point items per source. Add earned points out of 100 for the percentage. No keyword-based grading is used.