Code of Alabama

Ala. Code § 10-2B-15.02 (2026)

Consequences of Transacting Business Without Authority.

✓ official Alabama Legislature (ALISON) text, current July 2026
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All provisions of Title 10 have been repealed or transferred to Title 10A, effective January 1, 2011.

(Acts 1994, No. 94-245, p. 343, §1; repealed by Acts 1995, No. 95-663, p. 1374, §2; added by Acts 1995, No. 95-663, p. 1374, §3; Act 99-665, 2nd Sp. Sess., §3.)

Notes of Decisions
Cited in 32 cases, 1995–2014 · leading case: Briarcliff Nursing Home, Inc. v. Turcotte, 894 So. 2d 661 (Ala. 2004).
Briarcliff Nursing Home, Inc. v. Turcotte, 894 So. 2d 661 (Ala. 2004). · cites it 5× “However, in Community Care, this Court also stated: "The test of the enforceability of the arbitration clause in the Admission Contract in this case is not, as Community Care contends, whether the transaction substantially affects interstate commerce — which is the proper…”
Delta Const. Corp. v. Gooden, 714 So. 2d 975 (Ala. 1998). · cites it 6× “" § 10-2B-15.02, Ala.Code 1975 (1994 repl. vol.”
Ryan's Fam. Steak Houses, Inc. v. Regelin, 735 So. 2d 454 (Ala. 1999). · cites it 7× “More specifically, those cases do not stand for the proposition that Ala.Code 1975, § 10-2B-15.02(a), the "door closing statute," is unconstitutional as violating the Commerce Clause, United States Const.”
Archer W. Contractors, Ltd. v. Benise-Dowling & Assocs., Inc., 33 So. 3d 1216 (Ala. 2009). · cites it 8× “[3] Therefore, Archer Western contended, pursuant to § 10-2B-15.02(a), Ala. Code 1975, Benise-Dowling was barred from suing on the subcontract in Alabama.”
Penick v. Most Worshipful Prince Hall Grand Lodge F & a M of Alabama, Inc., 46 So. 3d 416 (Ala. 2010). · cites it 4× “Penick contends that, if the Lodge is a foreign corporation lacking a certificate to do business in Alabama from the Alabama Secretary of State, then it would have no standing to maintain an action in the courts of this State pursuant to § 10-2B-15.02(a), Ala.Code 1975. [8] A…”
Martin v. Cohen, 988 So. 2d 508 (Ala. 2008). · cites it 15× “2002) ], this Court also stated: “ ‘The test of the enforceability of the arbitration clause in the Admission Contract in this case is not, as Community Care contends, whether the transaction substantially affects interstate commerce — which is the proper analysis in cases not…”
Kennedy v. Boles Investments, Inc., 53 So. 3d 60 (Ala. 2010). · cites it 2× “65 million to BI and Boles because, he says, BI and Boles’s counterclaims are barred by the door-closing statute, § 10-2B-15.02, Ala.Code 1975. The door-closing statute provides: “(a) A foreign corporation transacting business in this state without a certificate of authority .”
Hays Corp. v. Bunge Corp., 777 So. 2d 62 (Ala. 2000). · cites it 10× “In response to motions filed by Hays, the court extended Hays's time for submitting responsive materials and three times it extended the time for the hearing.”
CAG MLG, L.L.C. v. Bart Smelley & Smelley Fam. Investments, L.L.C., 163 So. 3d 346 (Ala. 2014). · cites it 8× “Code 1975, was repealed and replaced by § 10-2B-15.02, Ala.Code 1975. See Ala. Acts 1994, Act No.”
Nat. Am. Ins. Co. v. Boh Bros. Const. Co., 700 So. 2d 1363 (Ala. 1997). · cites it 4× “94-245, § 3; Ala.Code 1975, § 10-2B-15.02. We note the same.”
Ex Parte Dial Kennels of Alabama, Inc., 771 So. 2d 419 (Ala. 1999). · cites it 2× “on January 1, 1995, and was replaced by § 10-2B-15.02(a), we conclude that § 10-2A-247 applies in this action.”
BMW of North Am., Inc. v. Gore, 701 So. 2d 507 (Ala. 1997). “Code 1975, § 8-19-10(a)(2) (providing for treble damages for certain violations of the Deceptive Trade Practices Act); § 37-2-18 (providing treble damages for certain harm caused by common carriers); § 10-2B-15.02 (levying a penalty "equal to treble the amount of all fees and…”
— Ala. Code § 10-2B-15.02(a) — 23 cases
Briarcliff Nursing Home, Inc. v. Turcotte, 894 So. 2d 661 (Ala. 2004). “However, in Community Care, this Court also stated: "The test of the enforceability of the arbitration clause in the Admission Contract in this case is not, as Community Care contends, whether the transaction substantially affects interstate commerce — which is the proper…”
Ryan's Fam. Steak Houses, Inc. v. Regelin, 735 So. 2d 454 (Ala. 1999). “More specifically, those cases do not stand for the proposition that Ala.Code 1975, § 10-2B-15.02(a), the "door closing statute," is unconstitutional as violating the Commerce Clause, United States Const.”
Delta Const. Corp. v. Gooden, 714 So. 2d 975 (Ala. 1998). “" § 10-2B-15.02, Ala.Code 1975 (1994 repl. vol.”
Archer W. Contractors, Ltd. v. Benise-Dowling & Assocs., Inc., 33 So. 3d 1216 (Ala. 2009). “[3] Therefore, Archer Western contended, pursuant to § 10-2B-15.02(a), Ala. Code 1975, Benise-Dowling was barred from suing on the subcontract in Alabama.”
Penick v. Most Worshipful Prince Hall Grand Lodge F & a M of Alabama, Inc., 46 So. 3d 416 (Ala. 2010). “Penick contends that, if the Lodge is a foreign corporation lacking a certificate to do business in Alabama from the Alabama Secretary of State, then it would have no standing to maintain an action in the courts of this State pursuant to § 10-2B-15.02(a), Ala.Code 1975. [8] A…”
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