Law 413: Commercial Law Review

Second Semester 2017-2018

A. Course Description
This course shall involve the review of the various laws and legal principles under Mercantile
Law, namely (1.) Letters of Credit, (2.) Warehouse Receipts Law, (3.) Trust Receipts Law, (4.)
Negotiable Instruments Law, (5.) Insurance Code, (6.) Transportation Law (Civil Code/Code
of Commerce/Warsaw Convention/Carriage of Goods by Sea Act), (7.) Corporation Law, (8.)
Securities Regulation Code, (9.) Banking Laws (General Banking Law/Secrecy of Bank
Deposits/New Central Bank Act/Foreign Currency Deposits Law; Other Banking Laws), (10.)
Intellectual Property Law, (11.) Financial Rehabilitation and Insolvency Law (FRIA), (12.)
Ant-Money Laundering Law, (13.) Foreign Investments Law; (14.) Civil Code provisions on
partnership and agency; and other related special commercial laws.

B. Course Objective

At the end of the course, the students should be able to critically discuss the various legal
principles and jurisprudence on Philippine Commercial Law and integrate and apply the
appropriate legal principle and jurisprudence in commercial law to a specific transaction and
case.

C. Course Outline and Timeframe

WEEK TOPIC
1 I. Introduction

A. Definition of Commercial Law

B. Importance/Rationale of Studying Commercial Law

C. Coverage of study

D. Comparison of Philippine Commercial Law with other jurisdictions

E. Constitutional Provisions relevant to Commercial Law

1. Article II, sections 19, 20

2. Article XII, sections 1, 10 - 20

II. Law on Letters of Credit

A. Governing Law: Code of Commerce, Arts. 567-572

B. Definition
 C. Essential Conditions for a Letter of Credit

D. Rationale and Character of Letter of Credit

E. Difference between a Letter of Credit and a Negotiable Instrument

F. Parties to a Letter of Credit and their respective duties and

responsibilities

G. Important Doctrines in the Law on Letters of Credit

1. Independence Doctrine
2. Fraud Exception Principle
3. Strict Compliance Rule

H. Kinds of Letters of Credit

I. Case Assignments

1. Rafael Galvez, et.al. vs. Court of Appeals and Asia United

Bank, G.R. No. 187919. April 25, 2012.,

2. Transfield Philippines vs Luzon Hydro Electric Corp. ,GR No

146717, Nov 22, 2004

3. Bank of America vs. Court of Appeals, 228 SCRA 357

4. Insular Bank vs. IAC, 167 SCRA 450

5. Feati Bank and Trust Company vs. Court of Appeals and

Villaluz, G.R. no.94209, April 30, 1991

6. Bank of the Philippine Islands vs. De Reny Fabric Industries,

Inc., GR no.L-24821, October 16, 1970

7. MWSS vs. Reynaldo Daway, GR no.160732, June 21, 2004

2 III. Law on Trust Receipts

A. Governing Law : Presidential Decree 115

B. Definition

C. Character
 D. Parties to a Trust Receipts Transaction

c.1 Rights and Obligations

c.2 Liabilities
c.3 Rules in case of loss

E. Remedies

F. Criminal Law Aspect of Trust Receipts Law

G. Case Assignments

1. Landl and Company (Phil) vs. Metropolitan Bank

and Trust Company, GR no.159622, July 30, 2004
2. Melvin Colinares and Lordino Veloso vs. Court of
Appeals, GR no.90828, September 5, 2000

IV. Law on Warehouse Receipts

A. Governing Law : Commonwealth Act 2137

B. Purpose of the Law

C. Definition of a warehouse receipt

D. Parties to the transaction and their respective rights, duties and

obligations

E. Kinds of warehouse receipts

F. Warehousemans Lien

e.1 Objective of the Lien

e.2 Nature of the lien
e.3 How is it enforced
e.4 Remedies

G. Jurisprudence on Warehouse receipts:

a.) Philippine National Bank vs. Se et., al. GR 119231, April

18, 1996
3 V. Law on Transportation
A. Arts.1732 1756, Civil Code of the Philippines

B. Common Carriers

1. Diligence Required of Common Carriers

2. Liabilities of Common Carriers

C. Vigilance over Goods

1. Exempting Causes

a. Requirement of Absence of Negligence

b. Absence of Delay
c. Due Diligence to Prevent or Lessen the Loss

2. Contributory Negligence

3. Duration of Liability

a. Delivery of Goods to Common Carrier

b. Actual or Constructive Delivery
c. Temporary Unloading or Storage

4. Stipulation for Limitation of Liability

a. Void Stipulations
b. Limitation of Liability to Fixed Amount
c. Limitation of Liability in Absence of Declaration of
Greater Value

5. Liability for Baggage of Passengers

a. Checked-In Baggage
b. Baggage in Possession of Passengers

D. Safety of Passengers

1. Void Stipulations
2. Duration of Liability

a. Waiting for Carrier or Boarding of Carrier

b. Arrival at Destination

3. Liability for Acts of Others

 a. Employees
b. Other Passengers and Strangers

4. Extent of Liability for Damages

E. Bill of Lading

1. Three-Fold Character
2. Delivery of Goods

a. Period of Delivery
b. Delivery Without Surrender of Bill of Lading
c. Refusal of Consignee to Take Delivery

3. Period for Filing Claims

4. Period for Filing Actions

F. Maritime Commerce

1. Charter Parties

a. Bareboat/Demise Charter
b. Time Charter
c. Voyage/Trip Charter

2. Liability of Ship Owners and Shipping Agents

a. Liability for Acts of Captain

b. Exceptions to Limited Liability

3. Accidents and Damages in Maritime Commerce

a. General Average
b. Collisions

4. Carriage of Goods by Sea Act

a. Application
b. Notice of Loss or Damage
c. Period of Prescription
d. Limitation of Liability
4
The Warsaw Convention

1. Applicability
 2. Limitation of Liability

a. Liability to Passengers
b. Liability for Checked Baggage
c. Liability for Handcarried Baggage

3. Willful Misconduct

H. Case Assignments

1. Civil Code

a. Philtranco Service Enterprises vs. Felix

Paras and Island Trailways, GR no.161909,
April 25, 2012
b. Spouses Teodoro and Nanette Parena vs.
Spouses Nicolas and Teresita Zarate, PNR,
GR.n0.157917, August 29, 2012
c. Malayan Insurance vs. Philippine First
Insurance Company, GR no.184300, July 11,
2012
d. PNR vs. Purifacion Vizcara, GR no.190022,
February 25, 2012
e. Au Navigation vs. FGU Insurance and
Pioneer Insurance,
GR no.171597, June 25, 2012
f. Insurance Company of North America vs.
Asian Terminals, GR no.180784, February 25,
2012.

2. Warsaw Convention

a. [G.R. No. 151783. July 8, 2003.],VICTORINO

SAVELLANO, VIRGINIA B. SAVELLANO
and DEOGRACIAS B. SAVELLANO,
petitioners, vs. NORTHWEST AIRLINES,
respondent.
b. [G.R. No. 120334. January 20,
1998.],NORTHWEST AIRLINES, INC.,
petitioner, vs. COURT OF APPEALS and
ROLANDO I. TORRES, respondents.
 c. [G.R. No. 171092. March 15, 2010.],EDNA
DIAGO LHUILLIER, petitioner, vs. BRITISH
AIRWAYS, respondent.
d. [G.R. No. 149547. July 4, 2008.],PHILIPPINE
AIRLINES, INC., petitioner, vs. HON.
ADRIANO SAVILLO, Presiding Judge of RTC
Branch 30, Iloilo City, and SIMPLICIO
GRIO, respondents.
e. GR nos.116044-45, March 9, 2000, American
Airlines vs. Court of Appeals
f. PAL vs. Court of Appeals, GR no.119641, May
17, 1996

3. Carriage of Goods by Sea Act

a. Coverage

b. Prescriptive Period to file claim

c. Process for claims

d. Cases

d.1 National Development Company vs.

The Court of Appeals, G.R. No. L-49469,
August 19, 1988
d.2 Loadstar Shipping Co., Inc., vs.
Court of Appeals, G.R. No. 131621
September 28, 1999
d.3 Eastern Shipping Lines, Inc., vs.
Intermediate Appellate Court, G.R. No. L-
69044 May 29, 1987
d.4 Philippine First Insurance Co. Inc.,
vs. Wallem Phils. Shipping, Inc., G.R.
No. 165647, 26 March 2009
d.5 Sea-Land Service, Inc.,vs.
Intermediate Appellate Court, G.R.
No. 75118 August 31, 1987
d.6 Domingo Ang vs. American
Steamship Agencies, Inc.,G.R. No. L-
 22491, January 27, 1967
d.7 Belgian Overseas Chartering and
Shipping N.V. vs. Philippine First
Insurance Co., Inc., G.R. No. 143133, June
5, 2002
d.8 Wallem Philippines Shipping vs SR
Farms, GR No. 161849, July 9, 2010
d.9 Asian Terminals Inc., v. Philam
Insurance Co. G.R. No.181262 , July 24,
2013

5 VI. Law on Insurance

A. Governing Law : PD 612 as amended by Republic Act

10607

B. Concept of Insurance

C. Elements of an Insurance Contract

D. Characteristics/Nature of Insurance Contract

E. Classes

1. Marine
2. Fire
3. Casualty
4. Suretyship
5. Life
6. Compulsory Motor Vehicle Liability Insurance

F. Insurable Interest

1. In life/health
2. In property
3. Double Insurance and Over Insurance
4. Multiple or Several Interests on Same Property

G. Perfection of the Contract of Insurance

1. Offer and Acceptance/Consensual

a. Delay in Acceptance
 b. Delivery of Policy

2. Premium Payment

3. Non-default Options in Life Insurance

4. Reinstatement of a Lapsed Policy of Life Insurace

5. Refund of Premiums

H. Rescission of Insurance Contracts

1. Concealment
2. Misrepresentation/Omissions
3. Breach of Warranties

I. Claims Settlement and Subrogation

1. Notice and Proof of Loss

2. Guidelines on Claims Settlement

a. Unfair Claims Settlement; Sanctions

b. Prescription of Actions
c. Subrogation
6 A. Case Assignments

j.1 Philippine Health Care Providers, Inc., vs. Commissioner

of Internal Revenue, G.R. No. 167330, September 18, 2009
j.2 Philamcare Health System vs. Court of Appeals, 379
SCRA 356, 2002
j.3 Lalican vs. Insular Life Assurance Company, Ltd. 597
SCRA 159, 2009
j.4 Alpha Insurance and Surety Co. vs. Castor, GR No.
198174, September 2, 2013
j.5 Fortune Medicare Inc. vs Amorin. G.R. No. 195872,
March 12, 2014.
J.6 Heirs Of Loreto c. Maramag vs. Eva Verna De Guzman
Maramag, et al., G.R.No. 181132, June 5, 2009
j.7 Cathay Insurance Co., vs. The Court of Appeals, et al.,
G.R. No. L-76145, June 30, 1987
j.8 Philippine Home Assurance Corporation vs. Court of
Appeals, G.R. No. 106999, June 20, 1996
j.9 Filipino Merchants Insurance Co., Inc., vs. Court Of
Appeals, et al., G.R. No. 85141, November 28, 1989
j.10 First Lepanto-Taisho Insurance Corporation vs.
Chevron Philippines, Inc., G.R. No. 177839,
January 18, 2012
j.11 Country Bankers Insurance Corporation vs.
Antonio Lagman, G.R. No.165487, July 13,
2011
j.13 Sun Insurance Office, Ltd., vs. The Court of
Appeals, G.R. No. 92383, July 17, 1992
j.14 Heirs of Loreto C. Maramag vs. Maramag, GR No.
181132, June 5, 2009
j.15 The Heirs of George Y. Poe vs. Malayan Insurance
Company, Inc., G.R. No. 156302, April 7, 2009
14, 1996
j.16 Jewel Villacorta vs. The Insurance Commission, et
al., G.R. No. 54171. October 28, 1980
j.17 Philamcare Health System vs. Court of Appeals,
379 SCRA 356, 2002
j.18 Spouses Nilo Cha and Stella Uy Cha vs. Court of
Appeals, G.R. No.124520. August 18, 1997
j.19 Malayan Insurance Company vs. PAP Co. (PHIL.
BRANCH). G.R. No. 200784, August 07,
2013
j.20 Armando Geagonia vs. Court of Appeals, et al.,
G.R. No. 114427, February 6, 1995
j.21 People of the Philippines vs. Yip Wai Ming, G.R.
No. 120959, November 14, 1996
j.22 Great Pacific Life Assurance Company vs.
Honorable Court of Appeals, G.R.
No. L-31845. April 30, 1979)
j.23 Jose Marques and Maxilite Technologies, Inc., vs.
Far East Bank And Trust Company, et al.,
G.R. No. 171379, January 10, 2011
j.24 Ma. Lourdes s. Florendo vs. Philam Plans, Inc., et
al., G.R. No. 186983, February 22,
2012
j.25 Manila Bankers Life Insurance Corporation vs.
Cresencia p. Aban, G.R. No. 175666,
July 29, 2013
j.26 Malayan Insurance Company, Inc. vs. Pap Co.,
Ltd., G.R. No. 200784, August 7, 2013
j.27 United Merchants Corporation vs. Country Bankers
Insurance Corporation, G.R. No. 198588, July
11, 2012
j.28 Eastern Shipping Lines, Inc. vs. Prudential
Guarantee and Assurance, Inc., G.R. No.
174116, September 11, 2009
7

VII. Corporation Code

A. Governing Law : Batas Pambansa 68

B. Corporation

1. Definition
2. Attributes of the Corporation
3. Classes of Corporation

C. Nationality of Corporations

1. Place of Incorporation
2. Control Test
3. Grandfather Rule

D. Corporate Juridical Personality

1. Doctrine of Separate Juridical Personality

a. Liability for Torts and Crimes
b. Recovery of Moral Damages

2. Doctrine of Piercing the Corporate Veil

a. Grounds for Application of Doctrine
b. Test in Determining Applicability

E. Incorporation and Organization

1. Promoter
a. Liability of Promoter
b. Liability of Corporation for Promoters Contracts

2. Number and Qualification of Incorporators

3. Corporate Name Limitations on Use of Corporate Name
4. Corporate Term
5. Minimum Capital Stock ad Subscription Requirements
6. Articles of Incorporation
a. Nature and Function of Articles
b. Contents
c. Amendment
 d. Non-Amenable Items

7. Registration and Issuance of Certificate of Incorporation

8. Adoption of By-Laws
a. Nature and Function of By Laws
b. Requisites of Valid By Laws
c. Binding Effects
d. Amendment or Revision

F. Corporate Powers
1. General Powers, Theory of General Capacity
2. Specific Powers, Theory of Specific Capacity
a. Power to Extend or Shorten Corporate Term
b. Power to Increase or Decrease Capital Stock or Incur,
Create,
Increase Bonded Indebtedness
c. Power to Deny Pre-Emptive rights
d. Power to Sell or Dispose of Corporate Assets
e. Power to Acquire Own Shares
f. Power to Invest Corporate Funds in Another Corporation or
Business
g. Power to Declare Dividends
h. Power to Enter Into Management Contract
i. Ultra Vires Acts
i. Applicability of Ultra Vires Doctrine
ii. Consequences of Ultra Vires Acts
3. How Exercised
a. By the Shareholders
b. By the Board of directors
c. By the Officers
4. Trust Fund Doctrine

G. Board of Directors and Trustees

1. Doctrine of Centralized Management
2. Business Judgment Rule
3. Tenure, Qualifications and Disqualifications of Directors or
Trustees
4. Elections
a. Cumulative voting/Straight voting
b. Quorum
5. Removal
 6. Filling of Vacancies
7. Compensation
8. Fiduciaries Duties and Liability Rules
9. Responsibility for Crimes
10. Inside Information
11. Contracts
a. By Self-Dealing Directors with the Corporation
b. Between Corporations with Interlocking Directors
c. Management Contracts
8 MIDTERM EXAM
9 12. Executive Committee
13. Meetings
a. Regular or Special
i. When and Where
ii. Notice
b. Who Presides
c. Quorum
d. Rule on Abstention

H. Stockholders and Members

1. Rights of a Stockholder and Members
a. Doctrine of Equality of Shares
2. Participation in Management
a. Proxy
b. Voting Trust
c. Cases When Stockholders Action is Required
i. By a Majority Vote
ii. By a Two-Thirds Vote
iii. By a Cumulative Voting

3. Proprietary Rights
a. Right to Dividends
b. Right of Appraisal
c. Right to Inspect
d. Pre-Emptive Right
e. Right to Vote
f. Right to Dividends
g. Right of First Refusal
4. Remedial rights
a. Individual Suit
b. Representative Suit
 c. Derivative Suit
5. Obligation of a Stockholder
6. Meetings
a. Regular or Special

i. When and Where

ii. Notice

b. Who Calls the Meetings

c. Quorum
d. Minutes of the Meetings
I. Capital Structure
1. Subscription Agreements
2. Consideration for Stocks
3. Shares of Stock
a. Nature of Stock
b. Subscription Agreements
c. Consideration for Shares of Stock
d. Watered Stock
i. Definition
ii. Liability of Directors for Watered Stocks
iii. Trust Fund Doctrine for Liability for Watered Stocks

e. Situs of the Shares of Stock

f. Classes of Shares of Stock

4. Payment of Balance of Subscription

a. Call by Board of Directors
b. Notice Requirement
c. Sale of Delinquent Shares
i. Effect of Delinquency
ii. Call by Resolution of the Board of Directors
iii. Notice of Sale
iv. Auction Sale and the Highest Bidder

5. Certificate of Stock
a. Nature of the Certificate
b. Uncertified Shares
c. Negotiability
i. Requirements for Valid Transfer of Stocks
 d. Issuance
i. Full payment
ii. Payment Pro-Rata
e. Lost or Destroyed Certificates

6. Stock and Transfer Book

a. Contents
b. Who May Make Valid Entries
7. Disposition and Encumbrance of Shares
a. Allowable Restrictions on the Sale of Shares
b. Sale of Partially Paid Shares
c. Sale of a Portion of Shares Not Fully Paid
d. Sale of All of Shares Not Fully Paid
e. Sale of Fully Paid Shares
f. Requisites of a Valid Transfer
g. Involuntary Dealings with Shares

10 J. Dissolution and Liquidation

1. Modes of Dissolution
a. Voluntary
i. Where No Creditors Are Affected
ii. Where Creditors Are Affected
iii. By Shortening of Corporate Term
b. Involuntary
i. By Expiration of Corporate Term
ii. Failure to Organize and Commence Business
Within 2 Years
from Incorporation
iii. Legislative Dissolution
iv. Dissolution by the SEC on Grounds Under
Existing Laws
2. Methods of Liquidation
a. By the Corporation Itself
b. Conveyance to a Trustee within a Three-Year Period
c. By Management Committee or Rehabilitation Receiver
d. Liquidation after Three Years

K. Other Corporations
1. Close Corporations
a. Characteristics of a Close Corporation
 b. Validity of Restrictions on Transfer of Shares
c. Issuance or Transfer of Stock in Breach of Qualifying
Conditions
d. When Board Meeting is Unnecessary or Improperly Held
e. Pre-Emptive Right
f. Amendment of Articles of Incorporation
g. Deadlocks
2. Non-Stock Corporations
a. Definition
b. Purposes
c. Treatment of Profits
d. Distribution of Assets upon Dissolution
3. Religious Corporations Exclude

4. Foreign Corporations
a. Bases of Authority over Foreign Corporations
i. Consent
ii. Doctrine of Doing Business(related to
definition under the Foreign Investments Act,
R.A. No. 7042)

b. Necessity of a License to Do Business

i. Requisites for Issuance of a License
ii. Resident Agent

c. Personality to Sue
d. Suability of Foreign Corporations
e. Instances When Unlicensed Foreign Corporations May
Be Allowed to Sue Isolated Transactions
f. Grounds for Revocation of License
11 L. Mergers and Consolidations
1. Definition and Concept
2. Constituent vs. Consolidated Corporation
3. Plan of Merger or Consolidation
4. Articles of Merger or Consolidation
5. Procedure
6. Effectivity
7. Limitations
8. Effects

M. Case Assignments:
1. Benny Hung vs BPI Finance Corporation . G.R. No.
182398, 20 July 2010
2. Ryuichi Yamamoto vs. Nishino Leather Industries,
Inc. and Ikuo Nishino, G.R. No. 150283, April 16,
2008
3. Sappari K. Sawadjaanvs. the Honorable Court of
Appeals, the Civil Service Commission and Al-
amanah Investment Bank of the Philippines, G.R.
No. 141735, June 8, 2005
4. Stronghold Insurance Company, Inc. vs. Tomas
Cuenca, et. al., G.R. No. 173297, March 6, 2013
5. Mercy Vda. de Roxas, represented by Arlene C.
Roxas-Cruz, in her capacity as substitute appellant-
petitioner v. Our Lady's Foundation, Inc. G.R. No.
182378, March 6, 2013.
6. Development Bank of the Philippines vs. Hydro
Resources Contractors Corporation, GR. No.
167603, March 13, 2013
7. ABBOT LABORATORIES VS. ALCARAZ, G.R.
No. 192571, July 23, 2013
8. NUCCIO SAVERIOS VS. PUYAT, G.R. No.
186433, November 27, 2013 Manila Electric
Company vs. T.E.A.M. Electronics Corporation,
Technology Electronics Assembly and Management
Pacific Corporation; and Ultra Electronics
Instruments, Inc., G.R. No. 131723, December 13,
2007
9. Kukan International Corporation vs. Hon. Judge
Amor Reyes, G.R. No. 182729, 29 September 2010
10. Gold Line Tours vs. Heirs of Maria Concepcion
Lacsa, GR No. 159108, 18 June 2012
11. Pacific Rehouse Corporation vs. Court of Appeals,
GR. No. 199687, March 24, 2014
12. Livesey vs. Binswanger Philippines, GR No.
177493, March 19, 2014
13. Heirs of Fe Tan Uy, represented by her heir, Mauling
Uy Lim vs. International Exchange Bank, G.R. No.
166282 & 83, February 13, 2013
14. Development Bank of the Philippines vs. Hydro
Resources Contractors Corporation, GR. No.
167603, March 13, 2013
15. Industrial Refractories Corporation of the
Philippines vs. Court of Appeals, Securities and
 Exchange Commission and Refractories
Corporation of the Philippines, G.R. No. 122174,
October 3, 2002
16. Zuellig Freight and Cargo Systemsvs. National
Labor Relations Commission, et al., G.R. No.
157900, July 22, 2013
17. Wilson P. Gamboa vs. Finance Secretary Margarito
B. Teves, et al., G.R. No. 176579, June 28, 2011
18. Heirs of Wilson P. Gamboa vs. Finance Secretary
Margarito B. Teves, et al., G.R. No. 176579, October
9, 2012
19. Matling Industrial and Commercial Corporation, et
al. vs. Ricardo R. Coros, G.R. No. 157802, October
13, 2010
20. Cebu Country Club, Inc., et al. vs. Ricardo F.
Elizagaque, G.R. No. 160273, January 18, 2008
21. WolrgangAurbach, John Griffin, David P.
Whittinghamand Charles Chamsay vs. Sanitary
Wares Manufacturing Corporatoin, Ernesto V.
Lagdameo, Ernesto R. Lagdameo, Jr., Enrique R.
Lagdameo, George F. Lee, Raul A. Boncan,
Baldwin Young and Avelino V. Cruz, G.R. No.
75875, December 15, 1989
22. LigayaEsguerra, et al. vs. Holcim Philippines, Inc.,
G.R. No. 182571, September 2, 2013
23. San Miguel Bukid Homeowners Association, Inc. vs
City of Mandaluyong, et al, GR no.153653, October
2, 2009; Republic of the Philippines vs. Coalbrine
International Philippines, et al GR No. 161838,
April 7, 2010
24. Mid Pasig Land and Development Corporation v.
Tablante, G.R. No. 162924, February 4, 2010;
PNCC Skyway Traffic Management and Security
Division Workers Organization vs PNCC Skyway
Corporation, GR No. 171231, February 17, 2010
25. Esguerra vs. Holcim Philippines G.R. No. 182571,
September 2, 2013
26. Spouses Afulugencia vs. Metropolitan Bank and
Trust Co. G.R. No. 185145, February 05, 2014
27. Banate vs. Philippine Countryside Rural Bank
(Liloan, Cebu), Inc., G.R. No. 163825, July 13, 2010
28. Advance Paper Corporation vs Arma Traders
Corporation , G.R. No 176897, December 11, 2013
29. Ryuichi Yamamoto vs. Nishino Leather Industries,
Inc. and Ikuo Nishino, G.R. No. 150283, April 16,
2008
12 1. Valle Verde Country Club, Inc., et al. vs. Victor
Africa, G.R. No. 151969, 4 September 2009
2. Heirs of Fe Tan Uy, represented by her heir, Mauling
Uy Lim vs. International Exchange Bank, G.R. No.
166282 & 83, February 13, 2013
3. Alert Security and Investigation Agency, Inc. and/or
Manuel D. Dasig vs. SaidaliPasawilan,
WilfredoVercelesand MelchorBulusan, G.R. No.
182397, September 14, 2011
4. United Coconut Planters Bank vs. Planters Products,
Inc., Janet Layson and Gregory Grey, G.R. No.
179015, June 13, 2012
5. Mercy Vda. de Roxas vs. Our Lady's Foundation,
Inc., G.R. No. 182378, March 6, 2013
6. Polymer Rubber Corporation vs. Ang, G.R. No.
185160. July 24, 2013
7. Elizabeth M. Gaguivs. Simeon Dejeroand
TeodoroPermejo, G.R. No. 196036, October 23,
2013
8. Turner vs. Lorenzo Shipping Corporation, G.R. No.
157479, November 24, 2010
9. Majority of Stockholders of Ruby Industrial
Corporation vs Lim, GR No. 165887, June 6, 2011
10. (Gilda C. Lim, Wilhelmina V. Joven and Ditas A.
Lerios, vs. Patricia Lim-Yu, in her capacity as a
minority stockholder of Limpan Investment
Corporation, G.R. No. 138343, February 19, 2001
11. Oscar C. Reyes vs. Hon. Regional Trial Court of
Makati, Branch 142, Zenith Insurance Corporation,
and Rodrigo C. Reyes, G.R. No. 165744, 11 August
2008
12. Legaspi Towers 300, Inc., vs. Muer G.R. No.
170783, June 18, 2012.
13. ANG, FOR AND IN BEHALF OF SUNRISE
MARKETING (BACOLOD), INC. V. SPS.
ANG.G.R. No. 201675, June 19, 2013
14. Africa vs. Hon. Sandiganbayan , G.R. Nos.
172222/G.R. No. 174493/ G.R. No. 184636,
November 11, 2013
15. Fil-Estate Golf and Development vs. Vertex Sales
and Trading Inc., G.R. No. 202079, June 10, 2013
16. Aguirre vs. FQB +7, Inc, GR No. 170770, January 9
2013.
17. Rene Knecht and Knecht, Inc. vs. United Cigarette
Corp., represented by Encarnacion Gonzales Wong,
 and Eduardo Bolima, Sheriff, Regional Trial Court,
Branch 151, Pasig City, G.R. No. 139370, July 4,
2002
18. Lucia Barramedavda. de Ballesteros vs. Rural Bank
of Canaman, Inc., represented by its liquidator, the
Philippine Deposit Insurance Corporation, G.R. No.
176260, November 24, 2010
19. Vigilla vs. Philippine College of Criminology, GR
No. 200094, June 10, 2013
20. Cargill, Inc. vs. Intra Strata Assurance Corporation,
G.R. No. 168266, March 15, 2010
21. Global Business Holdings, Inc. vs. Surecomp
Software, B.V., G.R. No. 173463, October 13, 2010)
22. Steelcase, Inc. vs. Design International Selections,
Inc., G.R. No. 171995, April 18, 2012
23. SME BANK INC, vs. GASPAR, G.R. No. 186641,
October 8, 2013
24. Commission of Internal Revenue vs, Bank of
Commerce, GR No. 180529, November 25, 2013
25. Mindanao Savings and Loan Association, Inc.,
represented by its Liquidator, the Philippine Deposit
Insurance Corporation vs. Edward Willkom; Gilda
Go; RemediosUy; MalayoBantuas, in his capacity as
the Deputy Sheriff of Regional Trial Court, Branch
3, Iligan City; and the Register of Deeds of Cagayan
de Oro City, G.R. No. 178618, October 11, 2010
26. (Bank of the Philippine Islands vs. BPI Employees
Union-Davao Chapter-Federation Of Unions In Bpi
Unibank, G.R. No. 164301, October 19, 2011
27. Bank of Philippine Islands v. Lee, G.R. No. 190144,
August 1, 2012

13
VIII. Securities Regulation Code (R.A. No. 8799)

A. State Policy, Purpose

B. Securities Required to Be Registered
1. Exempt Securities
2. Exempt Transactions
C. Procedure for Registration of Securities
D. Prohibitions on Fraud, Manipulation and Insider Trading
1. Manipulation of Security Prices
2. Short Sales
3. Fraudulent Transactions
4. Insider Trading
E. Protection of Investors
1. Tender Offer Rule
2. Rules on Proxy Solicitation
3. Disclosure Rule
F. Civil Liability
G. Case Assignments

1. Abacus Securities Corporation vs. Ruben Ampil,

G.R. No. 160016, February 27, 2006
2. Betty Gabionza and Isabelita Tan vs. Court of
Appeals, G.R. No. 161057, September 12, 2008
3. Betty Gabionza and Isabelita Tan vs. Court of
Appeals, G.R. No. 161057, September 12, 2008
4. Timeshare Realty vs. Cesar Lao, G.R. No. 158941,
February 11, 2008
5. Securities and Exchange Commission vs.
Prosperity.Com, Inc., G.R. No. 164197, January 25,
2012
6. Securities and Exchange Commission vs. Oudine
Santos, G.R. No. 195542, March 19, 2014
7. Union Bank of the Philippines vs. Securities and
Exchange Commission, G.R. No. 138949, June 6,
2001
8. Securities and Exchange Commission vs. Interport
Resources Corporation, et. al., G.R. No. 135808,
October 6, 2008
9. Philippine Veterans Bank v. Callangan, in her
capacity Director of the Corporation Finance
Department of the Securities and Exchange
Commission and/or the Securities and Ex-change
Commission, G.R. No. 191995, August 3, 2011
10. Cemco Holdings, Inc. vs. National Life Insurance
Company of the Philippines, G.R. No. 171815,
August 7, 2007
11. GSIS vs. Court of Appeals, G.R. No. 183905, April
16, 2009
12. Citibank N.A. vs. Tanco-Gabaldon, et al. G.R. No.
198444, September 4, 2013
13. Jose U. Pua vs. Citibank, N. A. G.R. No. 180064,
September 16, 2013
14
I. Banking Laws

a. The New Central Bank Act (R.A. No. 7653)

i. State Policies
ii. Creation of the Bangko Sentral ng Pilipinas (BSP)
iii. Responsibility and Primary Objective
iv. Monetary Board-Powers and Functions
v. How the BSP Handles Banks in Distress
1. Conservatorship
2. Closure
3. Receivership
4. Liquidation
vi. How the BSP Handles Exchange Crisis
1. Legal Tender Power
2. Rate of Exchange
b. Law on Secrecy of Bank Deposits (R.A. No. 1405, as amended)
i. Purpose
ii. Prohibited Acts
iii. Deposits Covered
iv. Exceptions
v. Garnishment of Deposits, including Foreign Deposits
c. General Banking Law of 2000 (R.A. No. 8791)
i. Definition and Classification of Banks
ii. Distinction of Banks from Quasi-Banks and Trust Entities
iii. Bank Powers and Liabilities
1. Corporate Powers
2. Banking and Incidental Powers
iv. Diligence Required of Banks Relevant Jurisprudence
v. Nature of Bank Funds and Bank Deposits
vi. Stipulation on Interests
vii. Grant of Loans and Security Requirements
1. Ratio of Net Worth to Total Risk Assets
2. Single Borrowers Limit
3. Restrictions on Bank Exposure to DOSRI
(Directors, Officers,
Stockholders and their Related Interests)

15 a. Case Assignments:
14. Ana Maria Koruga vs. Teodoro Arcenas, Jr., G.R.
No. 168332/ G.R. No. 169053, June 19, 2009
15. BSP Monetary Board vs. Hon. Antonio-Valenzuela,
G.R. No. 184778, October 2, 2009
16. Rural Bank of San Miguel vs. Monetary Board, G.R.
No. 150886, February 16, 2007
17. BSP Monetary Board vs. Hon. Antonio-Valenzuela,
G.R. No. 184778, October 2, 2009
18. Abacus Real Estate Development Center, Inc. vs.
Manila Banking Corp., G.R. No. 162270, April 06,
2005
19. Alfeo D. Vivas, vs. Monetary Board and PDIC, G.R.
No. 191424, August 7, 2013
20. Domingo Manalo vs. Court of Appeals, G.R. No.
141297, October 8, 2001
21. Rural Bank of Sta. Catalina vs. Land Bank of the
Philippines, G.R. No. 148019, July 26, 2004
22. Leticia G. Miranda vs. Philippine Deposit Insurance
Corporation, G.R. No. 169334, September 8, 2006
23. BSB Group, Inc. vs. Sally Go, G.R. No. 168644,
February 16, 2010
24. Intengan vs. Court of Appeals, G.R. No. 128996,
February 15, 2002
25. Ejercito vs. Sandiganbayan, G.R. Nos. 157294-95,
November 30, 2006
26. Marquez vs. Desierto, G.R. No. 135882, June 27,
2001; Office of the Ombudsman vs. Ibay, G. R. No.
137538, September 3, 2001
27. BSB Group, Inc. vs. Sally Go, G.R. No. 168644,
February 16, 2010
28. Rizal Commercial Banking Corporation vs. Hi-Tri
Development Corporation, 672 SCRA 514 (2012)
29. Salvacion vs. Central Bank of the Philippines, G.R.
No. 94723, August 21, 1997
30. Teodoro Baas vs. Asia Pacific Finance
Corporation, G.R. No. 128703, October 18, 2000
31. First Planters Pawnshop, Inc. vs. Commissioner of
Internal Revenue, G.R. No. 174134, July 30, 2008
32. Banco de Oro-EPCI, Inc. vs. JAPRL Development
Corporation, G.R. No. 179901, April 14, 2008
33. Spouses Raul and Amalia Panlilio vs. Citibank,
N.A., G.R. No. 156335, November 28, 2007
34. Gregorio Reyes vs. Court of Appeals, G.R. No.
118492, August 15, 2001
35. Consolidated Bank and Trust Corporation vs. Court
of Appeals, G.R. No. 138569, September 11, 2003
36. Citibank, N.A. vs. Spouses Luis & Carmelita
Cabamongan, G.R. No. 146918, May 2, 2006
37. Philippine Savings Bank vs. Chowking Food
Corporation, G.R. No. 177526, July 4, 2008
38. Central Bank of the Philippines vs. Citytrust
Banking Corporation, G.R. No. 141835, February 4,
2009
39. Equitable PCI Bank vs. Arcelito B. Tan, G.R. No.
165339, August 23, 2010
40. Comsavings Bank vs. Spouses Danilo and Estrella
Capistrano, G.R. No. 170942, August 28, 2013
41. Land Bank of the Philippines vs. Emmanuel Oate,
G.R. No. 192371, January 15, 2014
42. Development Bank of the Philippines vs. Guaria
Agricultural and Realty Development Corporation,
G.R. No. 160758, January 15, 2014
43. Consolidated Bank and Trust Corporation vs. Court
of Appeals, G.R. No. 138569, September 11, 2003
44. Ileana Macalinao vs. Bank of the Philippine Islands,
G.R. No. 175490, September 17, 2009
45. Heirs of Estelita Burgos-Lipat namely: Alan B.
Lipat and Alfredo B. Lipat, Jr. vs. Heirs of Eugenio
D. Trinidad namely: Asuncion R. Trinidad, et. al.,
G.R. No. 185644, March 2, 2010
46. Asia Trust Development Bank vs. Carmelo H.
Tuble, G.R. No. 183987, July 25, 2012
47. Advocates for Truth in Lending vs. BSP, G.R. No.
192986, January 15, 2013
48. Jose C. Go vs. BSP, G.R. No. 178429, October 23,
2009
49. Hilario P. Soriano vs. People of the Philippines, et.
al., G.R. No. 162336, February 1, 2010
 50. Republic of the Philippines vs. Sandiganbayan, et.
al., G.R. No. 166859/G.R. No. 169203/G.R. No.
180702, April 12, 2011

16 IX. Intellectual Property Code (Exclude Implementing Rules &

Regulations)

a. Intellectual Property Rights in General

i. Intellectual Property Rights
ii. Difference between Copyrights, Trademarks and Patent
iii. Technology Transfer Arrangements
b. Patents
i. Patentable Inventions
ii. Non-Patentable Inventions
iii. Ownership of a Patent
1. Right to a Patent
2. First-to-File Rule
3. Inventions Created Pursuant to a Commission
4. Right of Priority
iv. Grounds for Cancellation of a Patent
v. Remedy of the True and Actual Inventor
vi. Rights Conferred by a Patent
vii. Limitations of Patent Rights
1. Prior User
2. Use by the Government
viii. Patent Infringement
1. Test in Patent Infringement
i. Literal Infringement
ii. Doctrine of Equivalents
2. Defenses in Action for Infringement
ix. Licensing
1. Voluntary
2. Compulsory
x. Assignment and Transmission of Rights

c. Trademarks
i. Definition of Marks, Collective Marks, Trade Names
ii. Acquisition of Ownership of Mark
iii. Acquisition of Ownership of Trade Name
iv. Non-Registrable Mark
 v. Prior Use of Mark as a Requirement
vi. Test to Determine Confusing Similarity between Marks
1. Dominancy Test
2. Holistic Test
vii. Well-known Marks
viii. Rights Conferred by Registration
ix. Use by Third Parties of Names, etc. Similar to Registered
Mark
x. Infringement and Remedies
1. Trademark Infringement
2. Damages
3. Requirement of Notice
xi. Unfair Competition
xii. Trade Names or Business Names
xiii. Collective Marks
d. Copyrights
i. Basic Principles, Sections 172.2, 175 and 181
ii. Copyrightable Works
1. Original Works
2. Derivative Works
iii. Non-Copyrightable Works
iv. Rights of Copyright Owner
v. Rules on Ownership of Copyright
vi. Limitations on Copyright
1. Doctrine of Fair Use
2. Copyright Infringement
e. Rules of Procedure for Intellectual Property Rights Cases (A.M.No.
10-3-10-SC)
f. Case Assignments:

1. Pearl & Dean (Phil.), Inc. vs. Shoemart, Inc., G.R.

No. 148222, August 15, 2003
2. Jessie Ching vs. William Salinas, et. al., G.R. No.
161295, June 29, 2005
3. Smith Kline Beckman Corporation vs. Court of
Appeals, G.R. No. 126627, August 14, 2003
4. Phil. Pharmawealth, Inc. vs. Pfizer, Inc., G.R. No.
167715, November 17, 2010
5. Smith Kline Beckman Corporation vs. Court of
Appeals, G.R. No. 126627, August 14, 2003
6. Elidad C. Kho, doing business under the name and
style of KEC Cosmetics Laboratory vs. Court of
Appeals, et. al., G.R. No. 115758, March 19, 2002
7. E.Y. Industrial Sales vs. Shien Dar Electricity and
Machinery Co. , G.R. No. 184850, 20 October 2010
8. Superior Commercial Enterprises, Inc. vs. Kunnan
Enterprises Ltd. and Sports Concept & Distributor,
Inc., G.R. No. 169974, April 20, 2010
9. Birkenstock Orthopaedie Gmbh and Co. Kg vs.
Philippine Shoe Expo Marketing Corporation, G.R.
No. 194307, November 20, 2013
10. Berris Agricultural Co., Inc. vs. Norvy Abyadang,
G.R. No. 183404, October 13, 2010
11. Societe Des Produits Nestle, S.A. vs. Court of
Appeals and CFC Corporation, G.R. No. 112012,
April 4, 2001
12. McDonalds Corporation vs. L.C. Big Mak Burger,
Inc., G.R. No. 143993, August 18, 2004
13. McDonalds Corporation vs. Macjoy Fastfood
Corporation, G.R. No. 166115, February 2, 2007
14. Prosource International, Inc. vs. Horphag Research
Management SA, G.R. No. 180073, November 25,
2009
15. Dermaline, Inc. Vs. Myra Phamaceuticals, Inc., G.R.
No. 190065, August 1, 2010
16. Sketchers USA vs. Inter Pacific Industrial Trading
Corporation, GR No. 164321, March 28, 2011
17. Philip Morris, Inc. vs. Fortune Tobacco Corporation,
G.R. No. 158589, June 27, 2006
18. Mighty Corporation and La Campana Fabrica De
Tabaco, Inc. vs. E. & J. Gallo Winery and the
Andresons Group, Inc., G.R. No. 154342, July 14,
2004
19. Fredco Manufacturing Corporation vs. President and
Fellows of Harvard College, GR No. 185917, June
1, 2011
20. Melbarose R. Sasot and Allandale R. Sasot vs.
People of the Philippines, G.R. No. 143193, June 29,
2005
 21. Levi Strauss & Co., Levi Strauss (Phils.), Inc. vs.
Clinton Apparelle, Inc., G.R. No. 138900,
September 20, 2005
22. Tanduay Distillers, Inc. vs. Ginebra San Miguel,
Inc., G.R. No. 164324, August 14, 2009
23. William C. Yao, Sr., et. al. vs. People of the
Philippines, G.R No. 168306, June 19, 2007
24. Ong vs. People of the Philippines, GR No. 169440,
November 23, 2011
25. Republic Gas Corporation (REGASCO), et. al. vs.
Petron Corporation, et. al., G.R. No. 194062, June
17, 2013
26. Coffee Partners vs. San Francisco Coffee and
Roastery, Inc., G.R. No. 169504, 3 March 2010
27. Ecole De Cuisine Manille (Cordon Bleu of the
Philippines), Inc. vs. Renaus Cointreau & Cie and Le
Cordon Bleu Intl, B.V., G.R. No. 185830, June 5,
2013
28. Manly Sportwear Manufacturing, Inc. vs. Dadodette
Enterprises and/or Hermes Sports Center, G.R. No.
165306, September 20, 2005
29. ABS-CBN Broadcasting Corporation vs. Philippine
Multi-Media System, Inc., G.R. Nos. 175769-70,
January 19, 2009
30. NBI-Microsoft Corporation vs. Judy Hwang, et. al.,
G.R. No. 147043, June 21, 2005

17 X. Special Laws

A. Financial Rehabilitation and Insolvency Law (FRIA Law) /

RA 10142

i. Rationale
ii. Definition of Insolvency
iii. Definition of Debtor
iv. Three Modes of Rehabilitation and Procedures
v. Global Filing
vi. Issuance and effect of Stay Order
vii. Liabilities of Directors
viii. Remedies
B. Anti-Money Laundering Acdt. (R.A, No. 9160), as amended
by R.A, 9194) (Note: Anti-Financing of Terrorism Law/RA
10168)

ix. Policy of the Law

x. Covered Institutions
xi. Obligations of Covered Institutions
xii. Covered Transactions
xiii. Suspicious Transactions
xiv. When Is Money Laundering Committed
xv. Unlawful Activities or Predicate Crimes
xvi. Anti-Money Laundering Council
xvii. Functions
xviii. Freezing of Monetary Instrument or Property
xix. Authority to Inquire Into Bank Deposits
xx. Case Assignments:

1. Republic of the Philippines vs. Glasgow Credit and

Collection Services, Inc., G.R. No. 170281, January
18, 2008
2. Republic of the Philippines vs. Hon. Antonio
Eugenio, G.R. No. 174629, February 14, 2008
3. Republic of the Philippines vs. Cabrini Green &
Ross, Inc., G.R. No. 154522, May 5, 2006
4. Ret. Lt. Gen. Jacinto Ligot, et. al. vs. Republic of the
Philippines, G.R. No. 176944, March 6, 2013

C. Foreign Investments Act (R.A. No. 7042)

1. Policy of the Law

2. Definition of Terms
a. Foreign Investment
b. Doing Business in the Philippines
c. Export Enterprise
d. Domestic Market Enterprise
3. Registration of Investments on Non-Philippine
Nationals
4. Foreign Investments in Export Enterprise
5. Foreign Investments in Domestic Market Enterprise
6. Foreign Investment Negative List
7. Case Assignments:
 a. Alfred Hahn vs. Court of Appeals, G.R. No.
113074, January 22, 1997
b. Agilent Technologies Singapore (Pte.) Ltd. vs.
Integrated Silicon Technology Philippines
Corporation, G.R. No. 154618, April 14, 2004
c. Steelcase, Inc. vs. Design International Selections,
Inc., G.R. No. 171995, April 18, 2012
d. Heirs of Wilson Gamboa vs. Finance Secretary
Margarito Teves, G.R. No. 176579, October 9, 2012
18 FINAL EXAM