Basics of Law and Tourism Law

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Questions and Answers

What is the maximum percentage of capital stock that can be owned by foreign nationals in a public utility corporation in the Philippines?

  • 0%
  • 100%
  • 60%
  • 40% (correct)

According to the provided text, which of the following can hold executive and managing officer positions in public utility enterprises in the Philippines?

  • Foreign Investors
  • Filipino Citizens (correct)
  • Both Foreign Investors and Filipino Citizens
  • None of the above

Based on the information provided, what does the "Foreign Investment Negative List" specifically prohibit foreign investors from engaging in?

  • Investing in the Philippines
  • Operating public utility enterprises
  • Owning capital stock in Philippine corporations
  • Practicing professions in the Philippines (correct)

What is the key justification the text provides for limiting foreign ownership in Philippine public utility corporations?

<p>To preserve national identity (C)</p> Signup and view all the answers

The text mentions that the legislature can impair the obligation of franchises when the "common good" so requires. What is the most likely interpretation of this statement?

<p>The government can impose additional regulations on public utilities if it believes it benefits society. (C)</p> Signup and view all the answers

Based on the text, what is the primary focus of the "sustained development of a reservoir of national talents" initiative?

<p>Developing a skilled Filipino workforce (A)</p> Signup and view all the answers

If Mr. Walker is an American investor who wants to open saunas and massage clinics in the Philippines, based on the provided text, would he be allowed to do so?

<p>No, because the practice of massage therapy is limited to Filipino citizens. (D)</p> Signup and view all the answers

What is the main purpose of the legislation discussed in the text regarding foreign investment in public utilities?

<p>To protect the interests of Filipino citizens and businesses (C)</p> Signup and view all the answers

What is a defining characteristic of law?

<p>It is a rule of conduct established by a legitimate authority. (A)</p> Signup and view all the answers

Which of the following correctly describes Substantive Law?

<p>A law that creates, defines, and regulates rights. (A)</p> Signup and view all the answers

What distinguishes Adjective Law from Substantive Law?

<p>Adjective Law is concerned with procedures and methods. (A)</p> Signup and view all the answers

What type of law applies equally to all people in a given state?

<p>General or Public Law (C)</p> Signup and view all the answers

Which statement about the power to create laws is true?

<p>Congress holds the authority to create laws. (A)</p> Signup and view all the answers

Which of the following is NOT a characteristic of law?

<p>It strictly governs only criminal behavior. (B)</p> Signup and view all the answers

What is a Bill in the context of law?

<p>A proposed law that is awaiting approval. (A)</p> Signup and view all the answers

What is an example of Special or Private Law?

<p>A law addressing specific contracts between two parties. (C)</p> Signup and view all the answers

What does Civil Law primarily regulate?

<p>Relations and obedience among family and society members (D)</p> Signup and view all the answers

Which area does Maritime Law specifically pertain to?

<p>Regulations of ships and harbors (B)</p> Signup and view all the answers

What does Tourism Law encompass?

<p>Regulations regarding tourist travel and accommodation (A)</p> Signup and view all the answers

The definition of tourism by the World Tourism Organization includes which of the following elements?

<p>Travel for both personal and business purposes (B)</p> Signup and view all the answers

Why is there a need to study tourism law?

<p>Due to multiple commercial transactions and regulations in tourism (D)</p> Signup and view all the answers

What roles do food services and hotel services play in tourism?

<p>They provide entertainment for travelers (C)</p> Signup and view all the answers

How has electronic commerce influenced the tourism industry?

<p>It has become a necessity for doing business in tourism (D)</p> Signup and view all the answers

Which of the following sectors is NOT a part of the hospitality industry within tourism?

<p>Manufacturing of travel gear (C)</p> Signup and view all the answers

What is the primary purpose of the power of eminent domain?

<p>To forcibly acquire private property for public use (C)</p> Signup and view all the answers

What must occur before a business establishment can be demolished for a government project?

<p>Just compensation must be paid to the owners. (B)</p> Signup and view all the answers

What principle does the equal protection of the law embody?

<p>All persons subject to legislation should be treated alike under similar conditions. (A)</p> Signup and view all the answers

Which of the following is an essential aspect of procedural due process?

<p>Providing individuals an opportunity to be heard (C)</p> Signup and view all the answers

How can the government utilize its power of taxation in regulating business?

<p>By increasing taxes on businesses that may be harmful (D)</p> Signup and view all the answers

What right is guaranteed to individuals under Article III regarding employment in the tourism industry?

<p>The right to be informed and heard before dismissal (D)</p> Signup and view all the answers

What does the term 'police power' refer to in the context of government actions?

<p>The ability to regulate businesses for public safety (D)</p> Signup and view all the answers

In the context of due process, what must individuals be afforded regarding accusations against them?

<p>They must be notified and given a chance to respond. (D)</p> Signup and view all the answers

What is stated about the obligations of contracts in Section 10?

<p>Contracts must adhere strictly to their original terms. (B)</p> Signup and view all the answers

Under what condition can a law impair the obligation of a contract according to the given content?

<p>If there is a valid exercise of police power. (D)</p> Signup and view all the answers

What does the Supreme Court's stance imply regarding legislative interference in contracts?

<p>Legislative interference is unwarranted and illegal. (A)</p> Signup and view all the answers

What was the primary contention of Philippine Airlines and CREBA against Republic Act No. 7716?

<p>It impaired the obligations of contracts on existing sales. (D)</p> Signup and view all the answers

Which of the following is NOT a characteristic of contracts mentioned?

<p>Is subject to changes by legislative action. (D)</p> Signup and view all the answers

What role do the courts play concerning contracts as per the provided information?

<p>They enforce compliance with contractual terms. (D)</p> Signup and view all the answers

What happens if a law changes the terms of a legal contract?

<p>The contract becomes void and unenforceable. (A)</p> Signup and view all the answers

Which of the following statements reflects the principle of obligations in contracts?

<p>Obligations cannot be impaired by legislative actions. (C)</p> Signup and view all the answers

What is the main focus of the document regarding the tourism and hospitality industry?

<p>The potential legal issues related to privacy and wiretapping in the industry. (C)</p> Signup and view all the answers

According to the document, what is the purpose of Republic Act No. 4200?

<p>To protect the privacy of all forms of communication and correspondence. (C)</p> Signup and view all the answers

Which of the following is NOT a specific crime that allows for wiretapping as evidence under Republic Act No. 4200?

<p>Drug dealing (A)</p> Signup and view all the answers

What is the legal concept that requires the fairness, justness, and reasonableness of the law itself?

<p>Substantive due process (C)</p> Signup and view all the answers

In the case of the NBI's entrapment operation, how was the NBI's use of wiretapping justified?

<p>All of the above. (D)</p> Signup and view all the answers

Why is freedom of speech and expression important in the context of the tourism and hospitality industry?

<p>To prevent the exploitation of women and children by promoting open dialogue and transparency. (C)</p> Signup and view all the answers

What is the most likely implication of the statement that correspondence and communication are 'inevitable' in the tourism and hospitality industry?

<p>There is a significant risk of privacy breaches due to the nature of communication in the industry. (D)</p> Signup and view all the answers

Flashcards

Civil Law

Regulates relations among family and society members for private protection.

Maritime Law

Law governing commerce by sea, including ships, harbors, and seamen's status.

Mercantile Law

Law of commercial transactions, derived from merchants, including commercial paper and agency.

Tourism Law

Body of rules regulating tourist travel, accommodation, and services for tourists.

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Hospitality Industry

Sector of tourism comprising accommodation and food and beverage services.

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E-commerce in Tourism

Online transactions becoming essential in the tourism industry.

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Tourism Development Regulations

Government-imposed rules to promote tourism growth and safety.

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Tourism Stakeholders

Persons and businesses involved in providing service to tourists during travel.

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Definition of Law

A rule of conduct, just and obligatory, from legitimate authority for common observance.

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Characteristics of Law

Law is a rule of conduct that is just, obligatory, promulgated by legitimate authority, and for common benefit.

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Just and Obligatory

Laws are fair and must be followed; penalties must fit the offense.

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Legitimate Authority

Only those with power, like Congress, can create laws that bind society.

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Statute vs Bill

A statute is a law passed by Congress; a bill is merely a proposed law.

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Substantive Law

Law that creates, defines, and regulates rights and duties leading to a cause of action.

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Adjective Law

Law that provides methods for enforcing and protecting certain rights.

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General vs Special Law

General law applies to all; special law relates to specific persons or classes.

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Police Power

The government's authority to restrict private actions for public welfare.

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Eminent Domain

The power to acquire private property for public use with compensation.

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Compensation

Payment given to property owners when their property is acquired by the government.

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Power of Taxation

Government's right to collect taxes to fund public services.

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Bill of Rights

A list of fundamental rights guaranteed to citizens.

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Due Process

Legal requirement that the state must respect all legal rights owed to a person.

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Procedural Due Process

The method ensuring fair enforcement of laws and procedures.

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Equal Protection

The principle that requires all people to be treated equally under the law.

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Substantive Due Process

Legal principle requiring laws to be fair, just, and reasonable.

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Privacy of Communication

Constitutional right ensuring communication is confidential unless legally ordered otherwise.

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Anti-Wiretapping Law

Law prohibiting unauthorized interception of private communications with penalties for violations.

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Fruit of the Poisonous Tree

Legal doctrine that excludes evidence obtained illegally from being used in court.

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Lawful Order of the Court

A legal directive from a judge allowing actions that typically infringe on rights.

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Entrapment Operation

Covert law enforcement strategy to catch individuals committing crimes.

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Inadmissible Evidence

Evidence that cannot be used in a court proceeding due to illegal acquisition.

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Wiretapping Authorization

Legal permission to intercept communications during investigations of serious crimes.

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Foreign Investor Participation

Limited to their proportionate share in a public utility's capital.

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Public Utility Operations

Can only be granted to Filipino citizens or corporations with 60% Filipino ownership.

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Executive Officers Requirement

All executive and managing officers of public utilities must be Filipino citizens.

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Foreign Ownership Limit

Foreign nationals can own no more than 40% of a public utility.

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Employment Prioritization

The state prioritizes Filipino talents for employment opportunities.

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Professional Practice Restriction

Practice of professions in the Philippines is reserved for Filipino citizens.

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Foreign Investment Negative List

Specifies prohibited activities for foreign investors in the Philippines.

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Development of National Talent

State promotes Filipino scientists and skilled workers for national benefit.

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Obligation of Contracts

Legal requirement to adhere to contract terms.

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Civil Code

A set of laws governing private rights and contracts.

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Impairment of Contracts

Legal actions that weaken or change contracts' terms.

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Null and Void

A term indicating that something is legally ineffective.

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Republic Act No. 7716

A law restructured VAT affecting property sales and contracts.

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Philippine Airlines (PAL) Case

A Supreme Court case questioning contract validity due to new laws.

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Tourism Contracts

Agreements specifically related to tourism and hospitality services.

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Study Notes

Basics of Law

  • Law is defined as a rule of conduct, just and obligatory, promulgated by legitimate authority, and of common observance and benefit.
  • Characteristics of law:
    • It is a rule of conduct, establishing order.
    • It is just and obligatory, with penalties for wrongful acts.
    • It is promulgated by legitimate authority, like the Congress of the Philippines.
    • It's for common observance and benefits, promoting welfare.

Kinds of Law

  • Categorized by purpose and scope.
  • Substantive Law: Defines and regulates rights, leading to causes of action.
  • Adjective Law: Provides methods for protecting rights.
  • General/Public Law: Applies to all people, including criminal law, international law, and political law.
  • Special/Private Law: Concerns specific persons or things, like civil law, maritime law, and mercantile law.

Tourism Law

  • Tourism is defined by the WTO as a social, cultural, and economic phenomenon involving movement of individuals for personal or business purposes.
  • Tourism law encompasses rules, principles, and actions related to regulation, authority, and obedience within the tourism industry, including travel and accommodation. It includes individuals and businesses providing services.

Importance and Application of Tourism Law

  • Businesses in tourism, such as food services, hotels, and travel operations, heavily rely on numerous commercial transactions within the industry.
  • Various laws regulate tourism development.

Sources of Law:

  • The 1987 Philippine Constitution.
  • Statutes/Legislative Enactments: laws passed by Congress (statutes).
  • Administrative or Executive Orders, Regulations, and Rulings: issued by administrative officials.
  • Judicial Decisions or Jurisprudence: court interpretations of laws.
  • Custom: rules practiced for a long time.
  • Other sources include foreign tribunal decisions.

The Philippine Constitution

  • Supreme law, to which all other laws conform.
  • Establishes fundamental powers of government, limits them, and defines their distribution.
  • "Tourism" is referenced in a section on autonomous regions' economic, social, and tourism development.

Article I: National Territory

  • Defines geographical scope, including islands, waters, and domains under Philippine sovereignty.
  • Ensures clear territorial jurisdiction for tourism establishments.

Article III: Bill of Rights

  • Protects fundamental rights of all individuals, including those employed in the tourism industry.
  • Includes due process, equal protection of laws, and freedom of speech and expression.
  • These protections apply to both public- and private-sector employees in the tourism industry.

Article VIII: Application of law (excerpts)

  • Discusses privacy of communication, wiretapping, and protection against unlawful evidence.
  • Addresses freedom of speech, expression, and the right to assemble.
  • Details the limits on these rights if national security, public safety, or public health is at risk.
  • Describes the inherent powers of the state, such as police power, eminent domain, and taxation, that affect the tourism industry.

Section 8

  • Government employees' right to form unions in the workplace but not to strike.
  • Employee rights in the private sector.
  • Rights of people.

Section 10

  • Impairments of contractual obligations and the role of police powers within the tourism sector.
  • Importance of compliance with the terms of contracts.

Section 14

  • Importance of preserving national talents.
  • Practicing professions are usually only for citizens of the nation.

Article XII: National Economy and Patrimony

  • Defines that certain areas of investment are reserved for Filipino citizens.
  • Defines "qualified Filipinos."

Section 11

  • Restrictions on public utilities, allowing foreign investors limited participation related to their proportionate share of capital ownership.
  • Executive and managerial officers must be Filipino citizens.

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