Case 1: Friendship in Business

1.) Mr. Dy has no right to rescind the contract.

The court provided that the general rule is that rescission will not be
permitted for a slight or casual breach of the contract, but only for
such breaches as are so substantial and fundamental as to defeat the
object of the parties in making the agreement.

It should be noted that the time of payment stipulated for in the contract
should be treated as of the essence of the contract. There was only a
slight breach of contract when the payment was delayed for 20 days and
does not violate essential condition of the contract which warrants
rescission for non-performance. Furthermore, MR. Dy accepted the
payment of the overdue accounts and continued with the contract,
waiving its right to rescind the same.

2.) It is not appropriate to extend friendship in business transaction

because a business has a different personality to that of the
owners. Being friends with suppliers, customers, employees and
etc. could hinder decision making of a business owner. When
friendship is present in making decisions it would lead to making
decisions that would favor the self-interest of the owner rather than of
the business and if things does not go smoothly as planned it would
only ruin the friendship of the two parties.

Case 2: The Immoral Video Shop

1.) No, it is not right to sell pirated VCDs, DVDs and X-rated tapes in the
shadow of a certified video shop. This is the reason why the showbiz
industry is dying. If no one buys the original creations of a film, later
on much of them will crumble and only a few would produce a good
one. Thus, the prohibition in the selling of pirated VCDs or DVDs, we
are supporting the industry to develop more good quality films.
2.) No, buying pirated VCDs, DVDs is contrary to the provisions of the
law. The sale of Illegal copies or downloads of CDs and DvDs
containing music, movies, or software, as well as the prolific sale of
fake or counterfeit goods, is inextricably linked to organized crime.
Thus, one who buys pirated CDs and VCDs are violating special Laws
such Copyright law and Anti-Piracy Law
Case 3: Expired Gravy

1.) The moral issue in the case is the habitual truthfulness amounting
to the existence of good faith. Every person must in the exercise of
its rights must act with justice, give everyone his due and observe
honesty and good faith (Article 19, Civil Code of the Philippines).

2.) As Bartolome, he must serve the client with utmost honesty and
good faith as conducive to principle of morality.

Case 4: Shared Secrets

1.) Yes, trade secrets remain as an ethical issue in the Age of

Globalization. Protecting trade secrets is important to encourage
innovation and technological development by assuring the inventor
or creator that he or she will have the first chance to reap the
benefits of the investment. Trade secret law promotes the sharing
of knowledge, and the efficient operation of industry; it permits the
individual inventor to reap the rewards of his labor by contracting
with a company large enough to develop and exploit it. In doing so,
trade secret law protects an economic investment against "free
riders" by discouraging unfair competition by those who might
otherwise attempt to gain unauthorized access to and use of the
information through improper means. (Eden Hannon& Co. v. Sumitomo Trust
& Banking Co)

2. The action of Pantaleon is unethical since upon using the

information he has gained from his previous company, he enriched
himself at the expense of the latter. Trade secrets are ought to be
assets of its inventor, thus any act of stealing its idea or by way
using it without the consent of its inventor is contrary to moral
principles.

3. No, it is contrary to moral principles and thus the law provides

that no one shall be unjustly enriched at the expense of another.
Case 5: Jack and Poy

1. Yes, Poy is guilty of stealing or theft. Pursuant to Article 308 of

the Revised Penal Code, Theft is committed by any person who,
with intent to gain but without violence against, or intimidation
of persons nor force upon things, shall take personal property of
another without the latter's consent.
In the case at bar, the act of Poy by keeping the property of
the other constitutes theft which is punishable by law.

2. No, coercion is not sufficient reason to excuse a person form

moral liability unless such damages from such coercion must
be greater than that can be sustained from which moral liability
arises.

Case 6: Golden Taurus Garment Company

1. The acts of the company constitute violation of the contract.

Once an employee sign a contract, the compensation included in the
statement should be given. Whether the company is experiencing a
bankruptcy or not, it has the liability to give its employees an appropriate
compensation. Morse as jurisprudence provides, once a company has
given a bonus or benefit in such a way that it is on customary basis, the
same shall be demandable unless the company decides to declare
bankruptcy.