What is required for a foreign corporation to sue in a state's courts when it has conducted in-state business?

• A. It must obtain a certificate of authority to transact business
• B. Only if it has a treaty with the state
• C. Formal permission is not required to sue
• D. Only if it has a local subsidiary

Answer: (C)

This question tests how jurisdiction over a foreign corporation works in state court and how registration to transact business relates to bringing a lawsuit. Once a foreign corporation has been doing business in a state, the state court generally has personal jurisdiction over it for disputes arising from that activity, so the corporation can sue there without needing a separate “permission to sue.” The requirement to obtain a certificate of authority to transact business is a separate rule about the privilege to operate in the state; it governs whether the corporation may legally conduct business there, not whether it may initiate a lawsuit. Treaty status or having a local subsidiary are not the conditions that determine the right to bring a civil action in the state courts.