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This section contains the nature of the case and procedural background.

P filed suit in April 1999, alleging that D owed it $160,322.90 plus interest for jewelry sold or consigned. D claimed that P could not sue in a North Carolina court because P had failed to obtain a certificate of authority to transact business in the state. The court found that P through its single employee had sold and consigned merchandise to jewelry stores in Franklin, Asheville, and Highlands, North Carolina, since 1970. The court found that P's employee came to North Carolina at least twice every six weeks during the year and at least twice every four weeks during the summer months for the purpose of transacting business. Sometimes he came to North Carolina to transact business as often as three times a month. The employee always brought jewelry with him for delivery. When he visited jewelry stores in the state, he would either (1) make a direct sale on the spot without any confirmation from any other person or entity in any other place or (2) consign the jewelry, also without any further confirmation or approval from any other person or entity anywhere. When the employee took orders, he either shipped the ordered items to the business in North Carolina or personally delivered the merchandise. He also took returns of merchandise from customers in the state. The district court granted D's motion and dismissed P's action. P appealed.

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