BM1808

SITUATION ANALYSIS

Analyze the following situations and answer the questions that follow. (2 items x 5 points)

1. After many years of shopping in the Metro Manila area, Faith has developed the sound habit of
making cash purchases only, none on credit. In one shopping trip to a mall, she got the shock of her
shopping life when a store’s salesperson refused to accept her coins in payment for a purchase
worth not more than P100.00. Faith was paying P70.00 in 25-centavo coins and P25.00 in 10-centavo
coins. Strange as it may seem, the salesperson told her that her coins were not legal tender.

Do you agree with the salesgirl regarding her understanding of legal tender? Explain your answer.
 No. Under the Circular No. 536 of BSP Series of 2006, centavo coins have a legal tender as
long as it will not exceed 100 pesos. In the scenario, Faith paid P70 in 25-centavo coins and
P25 in 10-centavo coins which both does not exceed P100. Hence, the payment is in legal
tender and the salesperson is wrong.

2. John, an owner of a sari-sari store, purchased several bags of candies worth P5,000.00 from Luke, an
authorized dealer of the product. On the due date, John, who sells the candies at P1.00 each,
tendered his payment to Luke consisting of 5,000 pieces of P1.00 coin. Luke did not accept the
payment of John, explaining that his coins were not legal tender.

Do you agree with Luke? Explain your answer.

 Yes. Under the Circular No. 536 of BSP Series of 2006, 1-peso coins can be paid for up to
1000 pesos only. In the scenario, John paid 5,000 pieces of 1-peso coin which amounted to
5,000 pesos. Hence, it is not in legal tender and John can’t compel Luke to accept the
payment.

Rubric for scoring:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting details, and factual 3
scenarios
Grammar Used correct grammar, punctuation, spelling, and capitalization 1
Organization of ideas Expressed the points in clear and logical arrangement of ideas in 1
the paragraph
TOTAL 5

11 Activity 2 *Property of STI

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