Scholastic Book Clubs, Inc. v. State Bd. of Equalization

In Scholastic Book Clubs, Inc. v. State Bd. of Equalization (1989) 207 Cal.App.3d 734, the Court of Appeal affirmed the trial court's finding that an out-of-state mail-order bookseller had a sufficient taxation nexus with California based on agency relationships with in-state school teachers who voluntarily solicited book orders from their students. Although the teachers were not obligated to solicit orders from their students, once they did "they were obviously acting under Scholastic's authority, and certainly as Scholastic's agents or representatives." (Scholastic, supra, 207 Cal.App.3d at p. 737.) "By accepting the orders, the payment and shipping the merchandise, Scholastic clearly and unequivocally ratified the acts of the teachers and confirmed their authority as Scholastic's agents or representatives." (Id. at p. 738.)