LINQ - which layer should LINQ typically fall into, DAL?

It depends on what you want to do with linq. When using linq2sql i`d recommend the DAL, but Linq is more than just database access. You can use it to manipulate lists, ienumerables of business objects and so on... Linq itself can be useful everywhere in your application.

LINQ = Language INtegrated Queries. This is the query extensions that allows you to query anything from databases to lists/collections to XML. The query language is useful in any layer.

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