University of the East – College of Law

SPECIAL COMMERCIAL LAWS

SY 2020-2021, 1st Semester (2 Units)
Atty. Patrick DL. Maglinao, LL.M.

COURSE SYLLABUS

I. WAREHOUSE RECEIPTS LAW

Reference: Act No. 2137

1. Definition of terms
2. Functions of Documents of Title
3. Negotiability of Warehouse Receipts
4. Formalities
5. Negotiation of Warehouse Receipts
6. Effects of negotiation of Warehouse Receipts
a. Transfer of title
b. Rights acquired
c. Vendor’s lien
d. Pledge of receipt
 Bank of the Philippine Islands v. J.R. Herridge, G.R. Nos. L-21000,
21002-21004, and 21006, 20 December 1924.
7. Person who may negotiate
8. Warranties
9. Non-negotiable Receipts
10. Warehouseman’s defenses for non-delivery or misdelivery
a. Legal excuses
 Philippine National Bank v. Sayo. G.R. No. 129918, 9 July 1998.
b. Effect if no excuse
11. Warehouseman’s lien
a. Claims included in warehouseman’s lien
b. Properties that are subject to lien
c. Loss of lien
12. Adverse Claimant
13. Attachment or levy

II. LETTERS OF CREDIT

1. Governing Laws
a. Code of Commerce
b. Customs
i. Bank of America, NT & SA v. CA, G.R. No. 105395 December 10,
1993
2. Parties
a. Charles Lee v. CA, G.R. No. 117913, 1 February 2002.
b. MWSS v. Daway, G.R. No. 160732, 21 June 2004.
3. Independent Contracts
a. Independence Principle
i. Kung Hua Paper Products v. CA, G.R. No. 116863 February 12, 1998
ii. BPI v. De Reny Fabric, G.R. No. L-24821 October 16, 1970
iii. Transfield Phils. v. Luzon Hydro Corp., G.R. No. 146717, 22
November 2004
 iv. Land Bank v. Monet’s Export Mfg. Corp., G.R. No. 161865, 10 March
2005.
b. Fraud Exception
c. Doctrine of strict compliance
i. Feati Bank & Trust Co. v. CA, G.R. No. 94209, 30 April 1991.
ii. The HSDC v National Steel Corp. G.R. No. 183486, 24 February
2016.

III. TRUST RECEIPTS LAW

Reference: Presidential Decree No. 115

1. Definition of terms
2. What is a Trust Receipt
3. Obligations of an Entruster and Entrustee
a. Remedies of the Entruster
i. Landl & Co. v. Metrobank, G.R. No. 159622, 30 July 2004
4. Nature of Entruster’s Title
a. Security Interest
i. Melvin Colinares v. CA, G.R. No. 90828, 5 September 2000
ii. Development Bank o8f the Phils. v. Prudential Bank, G.R. No.
143772, 22 November 2005

IV. GENERAL BANKING LAW

Reference: Republic Act No. 8791

1. Banks
a. Nature of Business
b. Authority to incorporate and operate
2. Classification of banks
3. Functions of banks*
a. Basic functions
b. Other functions
c. Prohibited acts
4. Deposit function
a. Secrecy of bank deposits (Republic Act No. 1405)
i. Marquez v. Desierto, G.R. No. 135882, 27 June 2001
ii. GSIS v. CA, G.R. No. 189206, 8 June 2011
iii. Bangko Filipino v., Purisima, G.R. No. L-56429 May 28, 1988
iv. Ejercito v. Sandiganbayan, G.R. Nos. 157294-95, 30 November 2006
v. Doña Adela Export International v. Trade and Investment
Development Corp., G.R. No. 201931, 11 February 2015.
vi. BSP Group Inc., v. Sally Go, G.R. No. 168644, 16 February 2010.
vii. Philippine Commercial and Industrial Bank v. CA, G.R. No. 84526,
January 28, 1991
b. Deposit insurance (Republic Act No. 3591)
c. Unclaimed balances (Act No. 3936)
5. Loan function
a. Rules/restrictions
b. DOSRI accounts
6. Prohibited acts of borrowers
7. Ownership of banks
a. Foreign ownership
b. Filipino stockholdings
c. Stockholdings of family groups or related interests
8. Conservatorship
 a. Grounds
b. Powers of conservator
9. Receivership and liquidation
a. Grounds
b. Duties of receiver
c. Effects
d. Judicial review
10. Trust operations of banks
a. Prior authority
b. Trust business
c. Powers of trust entity
d. Separation of trust business of banks

V. ANTI-MONEY LAUNDERING ACT

Reference: Republic Act No. 9160; Republic Act No. 10927; Republic Act No. 10365

1. Covered transactions
2. Covered entities
3. Suspicious transactions
4. Unlawful activity
5. Obligations of covered institutions
6. Freezing of monetary instrument or property
7. Authority of AMLC to inquire into and examine bank deposits
a. Republic v. Eugenio, G.R. No. 174629, 14 February 2008.
b. SPCMB Law Offices v. CA, G.R. No. 216914, 6 December 2016.

VI. FINANCIAL REHABILITATION AND INSOLVENCY ACT OF 2010

Reference: Republic Act No. 10142

1. Definition of terms
2. Proceedings covered by FRIA
a. Persons who will file and/or approve
3. Excluded debtors
4. Rehabilitation
a. Rehabilitation of sole proprietorship, partnership and corporation
b. Rehabilitation plan
i. BPI v. Sarabia Manor Hotel, G.R. No. 175844, 29 July 2013.
c. Stay order
i. PAL v. Sps. Kurongking, G.R. No. 146698, 24 September 2002.
d. Suspended claims
i. Rubberworld v. NLRC, 305 SCRA 721
ii. Sps. Sobrejuanite v. ASB Development Corp., G.R. No. 165675, 30
September 2005.
iii. Metrobank v. ASB Holdings, G.R. No. 166197, 27 February 2007.
e. Management
5. Court action on Petition for Rehabilitation
6. Out-of-court rehabilitation
7. Suspension of payments
a. Suspension of payments v. rehabilitation
b. Suspension of payments v. liquidation
c. Prohibited acts
8. Liquidation
a. Process
b. Order
c. Effects
 d. Rights of secured creditors
9. Distribution of Assets
10. Cross-border insolvency

VII. SECURITIES REGULATIONS CODE

Reference: Republic Act No. 8799

1. Securities
2. Definition of terms
3. Objectives of the SRC and its Implementing Rules & Regulations
4. Basic rules regarding registration of securities
a. Registration requirement
b. Public offering
c. When securities can be sold
5. Exempt Securities
6. Exempt Transactions
7. Grounds for revocation and/or rejection of the registration of securities
8. Manipulative devices and practices on manipulation of security prices identified
under the SRC
9. What is “Put”, “Call”, “Straddle”. Rule regarding the three (3) practices in SRC
10. Short sale
11. Unlawful acts with respect to the purchase and sale of securities
12. Who is an Insider
a. Duties of an Insider when he is trading securities
b. Presumption
c. Material fact or information
d. Material non-public information
e. Prohibitions imposed on insiders regarding material non-public information
f. Unlawful acts involving insiders connection with tender offer
g. Short swing profits
13. Tender offer
a. What is tender offer
b. When is tender offer mandatory
c. Exempt from mandatory tender offer requirement
d. Obligations of person making a tender offer
e. Direct and indirect acquisition
14. Proxy solicitation
15. Margin trading
a. Prohibitions
b. Parties to be considered in pari delicto
16. Violations of SRC

VIII. INTELLECTUAL PROPERTY LAW

Reference: Intellectual Property Code – Republic Act No. 8293

1. Intellectual Property Code defined

a. Definitions
b. Concepts
i. Kho v. CA, G.R. No. 115758, 19 March 2002
ii. Pearl and Dean v. Shoemart Inc., G.R. No. 148222, 15 August 2003
2. International Law Related Provisions
a. Reciprocity
i. Mighty Corporation v. E&J Gallo Winery, G.R. No. 154342, July 14,
2004
3. Copyright
 a.Definitions
b.Civil code provisions
c.When rights over copyrights are conferred
d.Owners of copyright
e.Duration of copyright
f.Copyrightable objects
i. Literary and artistic works
ii. Derivative works
g. Unprotected works
i. Olaño v. Co, G.R. No. 195835, 14 March 2016
h. Rights of authors
i. Economic rights
ii. Moral rights
i. Publisher’s rights
j. Performer’s rights
k. Acts that do not infringe copyright
l. Fair use
i. ABS-CBN Corp. v. Gozon, G.R. No. 195956, March 11, 2015.
m. Infringement
4. Trademark
a. Functions
i. Mirpuri v. CA, G.R. No. G.R. No. 114508 November 19, 1999
b. How marks are acquired
c. Marks that cannot be registered
d. Limitations
i. Doctrine of Secondary Meaning
1. Arce & Sons v. Selecta Biscuit, G.R. No. L-1476, January 28,
1961
2. Ang v. Teodoro, 74 Phil. 50 [1942]
3. Shang Properties Realty Corp. v. St. Francis Dev’t Corp., G.R.
No. 190706, July 21, 2014
ii. Composite Marks
iii. Contractions and Coined Marks
1. Marvex Commercial Co. v. Petra Hawpia & Co, G.R. No. L-
19297, December 22, 1966
iv. Arbitrary use
1. UFC Phils. v. Barrio Fiesta, Mfg., G.R. No. 198889, January
20, 2016.
e. Internationally well-known marks
i. Ecole De Cuisine Manille, Inc. v. Renau contreau, G.R. No. 185830,
June 5, 2013.
f. Rights conferred
g. Duration
h. Infringement
i. Elements
1. Prosource International, Inc. v. Horphag Research
Management, G.R. No. 180073, November 25, 2009.
ii. Types of Confusion
1. Mighty Corporation v. E&J Gallo Winery, G.R. No. 154342,
July 14, 2004
iii. Test
1. McDonald’s Corp. v. L.C. Big Mak Burger, Inc., G.R. No.
143993, August 18, 2004.
2. McDonald’s Corp. v. McJoy, G.R. No. 166115, February 2,
2007
3. Societas Des Produit Nestlé S.A. v. CA, G.R. No. 172276,
August 8, 2010.
 4. Sketchers USA, Inc. v. Interpacific Industrial Trading Corp.,
G.R. No. 164321, March 23, 2011
5. UFC Phils. v. Barrio Fiesta, Mfg., G.R. No. 198889, January
20, 2016.
6. Great White Shark Ent. v. Cavalde, Jr., G.R. No. 192294,
November 21, 2012.
7. Foriertrans Manufacturing Corp. v. Davidoff et cie, G.R. No.
197482, March 6, 2017.
8. Wilton Dy v. Koninklijke Philips Electronics, G.R. No. G.R.
No. 186088, March 22, 2017
9. Diaz v. People of the Philippines, G.R. No. 180677, February
18, 2013
iv. Aural Effects/Idem Sonans Rule
1. Dermaline Inc. v. Myra Pharmaceuticals, Inc., G.R. No.
190065, August 16, 2010
2. Prosource International, Inc. v. Horphag Research
Management, G.R. No. 180073, November 25, 2009.
3. Societas Des Produit Nestlé S.A. v. CA, G.R. No. 172276,
August 8, 2010.
4. Seri Somboonsakdikul v. Orlane S.A., G.R. No. 188996,
February 1, 2017.
v. Expansion Business Rule
vi. Use of identical marks not necessarily prohibited
1. Shell Company of the Phils v. CA, G.R. No. L-49145, May 21,
1979
2. Esso Standard Eastern, Inc. v. CA, 116 SCRA 336
3. Canon Kabushiki Kaisha v. CA, 336 SCRA 266
4. Taiwan Kolin Corp., Ltd. V. Kolins Electronics Co., G.R. No.
209843, March 25, 2015
5. Acoje Mining Co. Inc. v. Director of Patents, No. L-28744,
April 29, 1971
6. Philippine Refining Co., Inc. v. Ng Sam and Director of
Patents, No. L-26676, July 30, 1982
7. Hickok Manufacturing Co., Inc. v. Court of Appeals and
Santos Lim Bun Liong, No. L-44707, August 31, 1982
vii. Unfair Competition
1. Superior Commercial Enterprises, Inc. v. Kunnan Enterprises
Ltd., G.R. No. 169974, April 20, 2010.
2. Del Monte Corp. v. Ca, G.R. No. L-78325, January 25, 1990
viii. Inter Partes Cases
5. Patents
a. Patentable inventions
b. Classes of patentable inventions
c. Non-patentable inventions
d. Persons entitled to right
e. Limitations of patent rights
f. Prejudicial disclosure
i. Creser Precision Systems, Inc. v. CA, 286 SCRA 13
g. Non-prejudicial disclosure
h. Term of a patent
i. Infringement
i. Doctrine of Equivalents
1. Smith Kline Beckman Corp. v. CA, G.R. No. 126627, August
14, 2003.
j. Compulsory licensing
k. Voluntary licensing and technology transfer agreements
l. What is the concept of divisional applications