Read the "PanAsian Imports, Inc." hypothetical fact pattern attached below.

Based on what was covered in this week's learning material:

a. Develop an argument that PanAsian must pay the 12% fee on its imports of Z Men toys;

b. Develop an argument that PanAsian must only pay the 3% fee on its imports of Z Men toys; and

c. Explain which argument is the better argument.

PanAsian Imports, Inc. PanAsian Imports, Inc. (\"PanAsian\") began in 1999 as an importer and distributor of Chinese manufactured goods. Over the past two decades, PanAsian has invested time and money developing contacts with Chinese toy manufacturers that make the \"Z Men\" line of toys. The Z Men are comic book superheroes who appear human but, in reality, are aliens from the planet genes. PanAsian has been awarded a contract from a Chinese toy manufacturer to be the exclusive distributor of the Z Men toys for the Midwestern United States for the next three years. The contract includes a provision whereby if PanAsian meets certain sales measures, it can become the exclusive distributor for the entire United States for the following decade. Recently, a major Hollywood studio has optioned a script for a movie based on the Z Men comic book, as comic book-based movies have been generating extremely large box ofce receipts the past several summers. Experts estimate that the movie will be hitting theaters the summer after PanAsian's initial distribution contract expires. Presumably, the movie will drive demand for Z Men toys through the roof, and PanAsian stands to make a fortune in the event it can capture the exclusive nationwide distributing contract. Recent news reports have uncovered a high level of lead in the paint used in a number of Chinese-made toys. While the levels of lead in the paint are not a risk if the toys are used normally, the lead levels are high enough to cause adverse health effects to children in the event that paint is chewed on and swallowed. The most in-depth news report focused on lead paint found on Prissy Polly dolls, a popular doll for girls aged 3-8. Prissy Polly dolls were immediately recalled following the report. No Z Men toys have been found with lead paint, yet. In response to the news reports, a number of parents groups, manufacturers, and \"Buy American\" lobbying rms have convinced Congress to pass a bill targeting imported toys. The law creates the Imported Toy Safety Administration (\"ITSA\"), which is empowered to require additional testing for lead paint in toys. In order to pay for additional testing, the law allows the Imported Toy Safety Administration, \"at its discretion, to impose a fee not to exceed 15% to be paid by importers on toys imported from overseas." The ITSA adopts regulations imposing a 12% fee on all \"dolls.\" \"Dolls\" is dened as \"toys representing only human beings and parts and accessories thereof.\" The ITSA imposes a 3% fee on all \"action gures,\" which is defined as \"toys representing animals or other non-human creatures (for example, robots and monsters) and parts and accessories thereof