Expanded Tertiary Education Equivalency and Accreditation Program

Midterm Examination
ProSales- Professional Salesmanship
RESEARCH
Name: Angelica Avelino Navarro

RESEARCH THE FOLLOWING TOPICS:

1. Social Responsibility of the business firm
2. What is consumerism? What are the consumer’s rights? What is environmentalism?
3. What are the two implied warranties under the law on contract of sales? Explain each.

I. SOCIAL RESPONSIBILITY OF THE BUSINESS FIRM

Social Responsibility of business has become a widely discussed topic in the recent years;

yet most of the research done so far has concentrated on the area of corporate social

responsibility. So, the question now is, what is the firm’s stand on business responsibility on

society? Are we not going to discuss about it just because no research has been done about this?

Let us first define what Social Responsibility is. According to Investopedia, social

responsibility means that businesses, in addition to maximizing shareholder value, should act in a

manner that benefits society. (“Social Responsibility During The Pandemic | BloggingJar | Jar”)

“Socially responsible companies should adopt policies that promote the well-being of society and

the environment while lessening negative impacts on them.” (“Social Responsibility Definition”)

(“What social responsibility does business have to society ...”) While socially responsible

companies or firm gives value to the society it also bolsters company’s image and brand. Especially
nowadays that people are incorporating businesses with their movements in their involvements in

society. Do you know that people see their buying decisions to support the issues they care about?

Therefore, companies are increasingly ramping up their focus on social responsibility, whether it

is championing women’s rights, protecting the environment, or attempting to obliterate poverty,

on local, national, or global levels.

II. CONSUMERISM AND CONSUMER RIGHTS

In this modern age, developed nations have access to products that have profoundly change

the society. It can feel like the entire world is looking to what is next. A mentality based around

that buying circulates everywhere. This idea is known as consumerism – the idea that buying items

fulfills a purpose rather than just what is needed. To simplify it, the more you acquire the happier

you become. An example of this is buying a huge house when you can live in a smaller house.

Although consumerism can increase economic output and create more jobs however it can lead

companies to develop low quality products because of resource depletion and could even promote

poor labor standards and pay for workers. It is difficult to say how many Filipinos are aware of

their consumer rights in developing countries like the Philippines, where rights are frequently

overlooked and taken for granted. But now, there is a consumer movement that raise global

awareness about consumer rights. It is important for the consumer to know these to have the upper

hand in purchasing a product especially that this is something you have paid for. In the Philippines,

we have Republic Act No. 7394 or The Consumer Act of the Philippines wherein it “is the policy

of the State to protect the interests of the consumer, promote his general welfare and to establish

standards of conduct for business and industry.” As consumers, we have eight (8) basic rights and

five (8) responsibilities. “These are the rights to basic needs; safety; information; choice; redress;
representation; consumer education, and a healthy environment.” (“What are the rights of the

consumer under copra 1986 ...”) The five (5) responsibilities are critical awareness; action; social

concern; environmental awareness; and solidarity. These rights aim to protect consumers’ interest.

These also serves as a reminder for the consumer to be more vigilant in purchasing a

product/service.

III. ENVIRONMENTALISM

The Philippines is one of the fastest growing countries in Asia, although it is known as to

have a biodiverse resource, but because of ineffective management, this value has degraded.

Environmentalism according to Britannica is a political and ethical movement that seeks to

improve and protect the quality of the natural environment. For countries like the Philippines, it

is important that the leaders or the government are also invested in preserving the health of the

environment most especially that the natural resources play a vital role in the country’s economy.

Due to its location, the Philippines is prone to natural disasters therefore environmentalism should

be given importance. Typhoon Haiyan, or "Yolanda," was one of the most catastrophic typhoons

to hit the Philippines in 2013, killing at least 6,300 people in that country alone. “Thousands of

trees were uprooted leading to a massive release of carbon dioxide and loss of habitat with resulting

effects on wildlife.” (“Tropical storm case study - Typhoon Haiyan - Tropical ...”) Flooding

knocked over ‘Power Barge 103’ causing an oil spill affecting mangrove ecosystems. These are

effects of natural disasters when we do not take care of our environment. Therefore,

environmentalists regard the need for a healthy environment as an economic necessity so that the

earth can continue to produce wealth. As a result, they consider soil, water, and air protection to

be critical. They advocate for energy efficiency and the responsible use of natural resources.
 IV. IMPLIED WARRANTIES UNDER THE LAW ON CONTRACT OF SALES

What is implied warranty? In common law jurisdictions, an implied warranty is a contract

law term for certain assurances that are presumed to be made in the sale of products or real

property, due to the circumstances of the sale. There are two implied warranties under the law on

contract of sales. One is the breach of warranty against eviction and the other is against hidden

defects.

According to Article 1548, warranty against eviction is a judicial process whereby the

vendee is deprived by virtue of a final judgment based on a right prior to the sale or an act

imputable to the vendor. (“Law on Sales Flashcards | Quizlet”) In this case, eviction means that

the buyer has lost or is in danger of losing the entirety of the thing sold due to a third party's right

that existed at the time of the transaction. The seller can only defeat an action for the warranty

against eviction by demonstrating that the title is perfect. Every transaction includes an implied

warranty to rights that existed at the time of the sale. As a basis, it is critical that you, as a seller,

disclose everything relevant to what is being offered. And, as a buyer, make certain that you have

thoroughly studied the history of the property being sold to avoid filing a lawsuit. Here are essential

elements of warranty against eviction. One is that the vendee is deprived of the entire or a portion

of the item purchased. Second, by virtue of the final judgment, the vendee is deprived. Third, the

judgment is based on a pre-sale right or an act imputed to the vendor. Fourth, the vendor was

summoned in the eviction suit at the request of the vendee. Finally, the vendee does not waive any

rights.

Another implied warranty is the warranty against hidden defects. Rehibatory action or

Accion Rehibatoria (Article 1561), states that the vendor shall be responsible for warranty against
the hidden defects which the thing sold may have, should they render it unfit for the use for which

it is intended, or should they diminish its fitness for such use to such an extent that, had the vendee

been aware thereof, he would not have acquired it or would have given a lower price for it; but

said vendor shall not be answerable for patent defects or those which may be visible, or for those

which are not visible if the vendee is an expert who, by reason of this trade or profession, should

have known them. (“Hidden Defect in Sales - BATASnatin.com”)

There are requisites under this warranty that should also have to be considered. One, the

defect must be important or serious – if it renders the thing sold unfit for the use which it is rendered

or diminishes. Second, it must be hidden. There is no warranty if the defect is visible. Third, it

must exist at the time of sale. Fourth, the vendor must be notified of the fault within a reasonable

period. Fifth, the actions for rescission or reduction of the price must be brought w/in the proper

period – 6 months from the delivery of the thing sold or within 40 days from the date of delivery

in case of animals. Finally, there must be no warranty waiver on the part of the vendor.

The main takeaway here is that we should always be aware of our rights when purchasing

a product, service, or land title. If it is a product, inspect the quality and speak clearly with the

seller about warranties and any defects that must be declared to avoid future legal disputes. If it is

a service, check sure the price you are paying covers the service you desire. Most importantly, if

it is a land title, ensure that no one else has purchased the lot before you and that the seller is the

sole proprietor.
REFERENCES:

CONSUMERS’ AWARENESS ON THEIR EIGHT BASIC RIGHTS: A ...,

http://www.theibfr2.com/RePEc/ibf/ijmmre/ijmmr-v7n2-2014/IJMMR-V7N2-2014-6.pdf.

What are the rights of the consumer under copra 1986 ..., https://www.theburningofrome.com/users-

questions/what-are-the-rights-of-the-consumer-under-copra-1986/.

"FINAL REPORT re EFFECTS of Typhoon "YOLANDA" (HAIYAN)" (PDF). NDRRMC. 2014. Archived
from the original (PDF) on November 5, 2020. Retrieved November 5, 2020.

Law on Sales Flashcards | Quizlet, https://quizlet.com/64219716/law-on-sales-flash-cards/.

Hidden Defect in Sales - BATASnatin.com, https://batasnatin.com/law-library/civil-law/sales/304-hidden-

defect-in-sales.html.