[Am-info] States' remedy?

[T. Guilbert]

In a message dated 2002 August 18 (Sunday), timestamp 09:28 AM, 
   on the topic Re: [Am-info] States' remedy?,
   Mitch Stone <mitch@accidentalexpert.com> wrote:

"|The inserted editorial remark defining "foreign" as "incorporated in
"| another state" seems suspect. 

No, that's a definitional term:  what "foreign corporation" means
pretty much universally. 

"|I believe it would be
"|unconstitutional for a  state to prohibit any corporation
"|incorporated in any other state from  conducting its business in
"|that state. 

There's conducting business, and there's "conducting business."  The
term as used in many state statutes means to maintain a permanent
office in the state, have permanent resident salespeople in the state,
own real property in the state for commercial purposes, etc.  Those
activities may properly be regulated (or taxed), but prohibiting an
out of state corporation from soliciting sales (except for sales of
alcoholic beverages, which have their own constitutional amendment and
thus are special) from domestic residents would raise the problems you
allude to. 

"|Someone who understands the law  better than I should
"|elaborate, but it would seem to be a pretty clear  violation of the
"|interstate commerce clause of the Constitution.

You're welcome. 

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