Professional Documents
Culture Documents
REVIEWER ON
MERCANTILE LAW
I. LETTERS OF CREDIT
A. Definition and Nature of Letter of Credit --------------------- Page 01
B. Parties to a Letter of Credit
1. Rights and Obligations of Parties ------------------------ Page 02
C. Basic Principles of Letter of Credit
1. Doctrine of Independence --------------------------------- Page 03
2. Fraud Exception Principle --------------------------------- Page 04
3. Doctrine of Strict Compliance ---------------------------- Page 04
V. TRANSPORTATION LAWS
A. Common Carriers ------------------------------------------------- Page 93
1. Diligence Required of Common Carriers --------------- Page 94
2. Liabilities of Common Carriers --------------------------- Page 95
B. Vigilance over Goods
1. Exempting Causes ------------------------------------------ Page 95
a. Requirement of Absence of Negligence ----------- Page 97
b. Absence of Delay ------------------------------------- Page 97
c. Due Diligence to Prevent or Lessen the Loss ----- Page 98
2. Contributory Negligence ----------------------------------- Page 98
3. Duration of Liability
a. Delivery of Goods to Common Carrier ------------ Page 98
b. Actual or Constructive Delivery -------------------- Page 98
c. Temporary Unloading or Storage ------------------- Page 99
4. Stipulations Limiting Liability
a. Void Stipulations -------------------------------------- Page 99
b. Limitation of Liability to Fixed Amount --------- Page 100
c. Limitation of Liability in Absence of Declaration of
Greater Value ---------------------------------------- Page 100
5. Liability for Baggage of Passengers -------------------- Page 100
a. Checked-In Baggage -------------------------------- Page 101
b. Baggage in Possession of Passengers ------------- Page 101
C. Safety of Passengers
1. Void Stipulations ------------------------------------------ Page 102
2. Duration of Liability -------------------------------------- Page 102
a. Waiting for Carrier or Boarding of Carrier ------ Page 103
b. Arrival at Destination ------------------------------- Page 103
3. Liability for Acts of Others
a. Employees -------------------------------------------- Page 104
b. Other Passengers and Strangers ------------------- Page 105
4. Extent of Liability for Damages ------------------------ Page 105
D. Bill of Lading
1. Three-Fold Character ------------------------------------- Page 108
2. Delivery of Goods ----------------------------------------- Page 108
a. Period of Delivery ----------------------------------- Page 108
b. Delivery Without Surrender of Bill of
Lading ------------------------------------------------- Page 109
c. Refusal of Consignee to Take Delivery ---------- Page 109
3. Period for Filing Claims ---------------------------------- Page 109
4. Period for Filing Actions --------------------------------- Page 110
E. Maritime Commerce
1. Charter Parties --------------------------------------------- Page 111
a. Bareboat/Demise Charter -------------------------- Page 111
b. Time Charter ----------------------------------------- Page 112
c. Voyage/Trip Charter -------------------------------- Page 112
2. Liability of Ship Owners and Shipping Agents ------- Page 112
a. Liability for Acts of Captain ----------------------- Page 113
b. Limited Liability Rule ------------------------------ Page 114
c. Exceptions to the Limited Liability Rule --------- Page 114
3. Accidents and Damages in Maritime Commerce
a. General and Particular Averages ------------------ Page 115
b. Collisions --------------------------------------------- Page 116
4. Carriage of Goods by Sea Act
a. Application ------------------------------------------- Page 117
b. Notice of Loss or Damage -------------------------- Page 117
c. Period of Prescription ------------------------------- Page 118
d. Limitation of Liability ------------------------------ Page 118
F. The Warsaw Convention
1. Applicability ----------------------------------------------- Page 118
2. Limitation of Liability ------------------------------------ Page 119
a. Liability to Passengers ------------------------------ Page 120
b. Liability for Checked Baggage -------------------- Page 120
c. Liability for Handcarried Baggage ---------------- Page 120
3. Willful Misconduct --------------------------------------- Page 120
I. Capital Structure
1. Subscription Agreements --------------------------------- Page 181
2. Consideration for Shares of Stock ---------------------- Page 182
3. Shares of Stock
a. Nature of Shares of Stock -------------------------- Page 183
b. Consideration for Shares of Stock ---------------- Page 183
c. Watered Stock
i. Definition ----------------------------------------- Page 183
ii. Liability of Directors for Watered Stocks ---- Page 184
iii. Trust Fund Doctrine for Liability for
Watered Stocks ---------------------------------- Page 184
d. Situs of the Shares of Stock ------------------------ Page 185
e. Classes of Shares of Stock ------------------------- Page 185
4. Payment of Balance of Subscription -------------------- Page 189
a. Call by Board of Directors ------------------------- Page 190
b. Notice Requirement -------------------------------- Page 190
c. Sale of Delinquent Shares ------------------------- Page 191
i. Effect of Delinquency -------------------------- Page 191
ii. Call by Resolution of the Board of
Directors ------------------------------------------ Page 191
iii. Notice of Sale ------------------------------------ Page 191
iv. Auction Sale and the Highest Bidder --------- Page 191
5. Certificate of Stock --------------------------------------- Page 192
a. Nature of the Certificate ---------------------------- Page 193
b. Uncertificated Shares ------------------------------- Page 193
c. Negotiability ----------------------------------------- Page 194
i. Requirements for Valid Transfer of
Stocks --------------------------------------------- Page 194
d. Issuance ---------------------------------------------- Page 194
i. Full Payment ------------------------------------- Page 195
ii. Payment Pro-Rata ------------------------------- Page 195
e. Lost or Destroyed Certificates -------------------- Page 195
6. Stock and Transfer Book
a. Contents ---------------------------------------------- Page 196
b. Who May Make Valid Entries --------------------- Page 196
7. Disposition and Encumbrance of Shares
a. Sale of shares ---------------------------------------- Page 196
b. Allowable Restrictions on the Sale of Shares --- Page 197
c. Requisites of a Valid Transfer --------------------- Page 197
d. Involuntary Dealings with Shares ---------------- Page 197
C. Trademarks
1. Definition of Marks, Collective Marks,
Trade Names ----------------------------------------------- Page 249
2. Acquisition of Ownership of Mark --------------------- Page 249
3. Acquisition of Ownership of Trade Name ------------- Page 250
4. Non-Registrable Marks ----------------------------------- Page 250
5. Tests to Determine Confusing Similarity between Marks
a. Dominancy Test ------------------------------------- Page 251
b. Holistic Test ------------------------------------------ Page 251
6. Well-Known Marks --------------------------------------- Page 252
7. Rights Conferred by Registration ----------------------- Page 252
8. Infringement and Remedies
a. Trademark Infringement ---------------------------- Page 252
b. Damages ---------------------------------------------- Page 254
c. Requirement of Notice ------------------------------ Page 254
9. Unfair Competition --------------------------------------- Page 254
D. Copyrights
1. Basic Principles, Sections 172.2, 175 and 181 -------- Page 256
2. Copyrightable Works
a. Original Works -------------------------------------- Page 257
b. Derivative Works ------------------------------------ Page 258
3. Non-Copyrightable Works ------------------------------- Page 258
4. Rights of Copyright Owner ------------------------------ Page 260
5. Rules on Ownership of Copyright ---------------------- Page 261
6. Limitations on Copyright
a. Doctrine of Fair Use -------------------------------- Page 263
7. Copyright Infringement ---------------------------------- Page 263
X. SPECIAL LAWS
A. Anti-Money Laundering Act (R.A. No. 9160, as amended by
R.A. No. 9194)
1. Policy of the Law ------------------------------------------ Page 268
2. Covered Institutions --------------------------------------- Page 268
3. Obligations of Covered Institutions --------------------- Page 270
4. Covered Transactions ------------------------------------- Page 272
5. Suspicious Transactions ---------------------------------- Page 272
6. Money Laundering; How Committed ------------------ Page 273
7. Unlawful Activities or Predicate Crimes --------------- Page 274
8. Anti-Money Laundering Council ----------------------- Page 276
9. Functions --------------------------------------------------- Page 277
10. Freezing of Monetary Instrument or Property --------- Page 278
11. Authority to Inquire Into Bank Deposits --------------- Page 278
B. Foreign Investments Act (R.A. No. 7042)
1. Policy of the Law ------------------------------------------ Page 280
2. Definition of Terms
a. Foreign Investment ------------------------------------ Page 281
b. “Doing Business” in the Philippines ---------------- Page 281
c. Export Enterprise --------------------------------------- Page 281
d. Domestic Market Enterprise -------------------------- Page 281
C. Electronic Commerce Act of 2000 (R.A. No. 8792)
and A.M. No. 01-7-01-SC or the Rules on
Electronic Evidence -------------------------------------------- Page 281
D. Philippine Competition Act (R.A. No. 10667) -------------- Page 281