Asked by Harry Singh on Jun 11, 2024
Verified
A state law regulating the activities of a foreign corporation does not unduly burden interstate commerce if:
A) the law serves both the state's and the foreign corporation's legitimate interest.
B) the foreign corporation has chosen the least burdensome means of promoting that interest.
C) the legitimate state interest outweighs the statute's burden on interstate commerce.
D) a foreign corporation enters interstate commerce to do intrastate business in a state.
Interstate Commerce
Economic activity that involves trade, traffic, or transportation across state lines, falling under the regulatory power of the federal government.
Foreign Corporation
A company that is incorporated in one country but conducts business operations in another country where it is considered foreign.
- Recognize the distinctions and responsibilities involved in operating a corporation across state lines, including the necessity for qualification in foreign states.
- Understand the due process requirements for bringing a foreign corporation into a state's court.
Verified Answer
MH
Marcellus HughesJun 15, 2024
Final Answer :
B
Explanation :
When a foreign corporation enters interstate commerce to do intrastate business in a state,the state may regulate the corporation's activities,provided the regulation does not unduly burden interstate commerce.A state law regulating the activities of a foreign corporation does not unduly burden interstate commerce if (1)the law serves a legitimate state interest, (2)the state has chosen the least burdensome means of promoting that interest,and (3)that legitimate state interest outweighs the statute's burden on interstate commerce.
Learning Objectives
- Recognize the distinctions and responsibilities involved in operating a corporation across state lines, including the necessity for qualification in foreign states.
- Understand the due process requirements for bringing a foreign corporation into a state's court.
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