New York's highest court ruled Thursday the state can collect sales tax from out-of-state retailers, rejecting claims by Amazon.com and Overstock.com that the tax law violates the U.S. Constitution's Commerce Clause.

The Court of Appeals said in a 4-1 ruling that the 2008 amendment meets the U.S. Supreme Court test that the sellers have "a substantial nexus" with the taxing state. Taxes apply when the online retailers generate at least $10,000 in annual sales to New Yorkers from in-state websites that earn commissions by bringing in potential customers through links to the big retailers.

Amazon.com, with corporate offices in Washington state, has an "Associates Program" where others put such links on their websites. Overstock.com, based in Utah, suspended its similar "Affiliates" program in New York after the state statute was enacted.

New York's sales tax is 4 percent and all its counties and New York City add an additional tax ranging from 3 percent to near 5 percent. Both apply to applicable Internet sales, according to the state Department of Taxation and Finance.

The Supreme Court says a Guam man can sue the government for a Navy surgeon's unsuccessful cataract surgery.

A unanimous court ruled on Monday for Steven Alan Levin, who was operated on in March 2003 at the United States Naval Hospital in Guam, a U.S. territory. Levin said he withdrew his consent before the operation began but doctors proceeded anyway. Levin suffered complications, which require ongoing treatment.

Levin sued for medical malpractice and battery. The courts threw out the medical malpractice complaint and kept the battery charge. But the 9th U.S. Circuit Court of Appeals said the government is also immune from being sued for battery.

The Supreme Court reversed that decision, with Justice Ruth Bader Ginsburg writing for the court that Levin's battery lawsuit against the government can move forward.

A former Massachusetts chemist accused of faking test results at a state drug lab has pleaded not guilty to four counts of obstruction of justice in a scandal that could jeopardize thousands of drug convictions.

Annie Dookhan was indicted on a total of 27 charges accusing her of fabricating test results and tampering with drug evidence while testing substances in criminal cases.

The 35-year-old Dookhan was arraigned Wednesday on four obstruction counts in Brockton Superior Court. She was scheduled to be arraigned later Wednesday on additional charges in Fall River Superior Court.

An estimated 200 convicted defendants have been released from jail and had their cases put on hold while their legal challenges are pending.

Authorities shut down the lab in August.