yes it does. you will see a pin like object sticking out from the plastic bezel that is above the keyboard. this pin is depressed when the screen is in the closed position. - oops, i was thinking of the D600... not sure where it is on the C. since there is no obvious pin switch then i would suspect that it has a magnetic switch with a small magnet hidden somewere in the plastic bezel that surrounds the screen.
I have open the computer a couple of times both the display and the base of the laptop. I have not found the part. I know that I had one person point out what they thought the switch was but all it was a microphone and IR Leds. I wouldn't be looking so hard but this was a gift given to a child for christmas. So if you or anyone else have any idea's I would deeply appreciate it.