Facts:

In the year 1960, Caltex conceived a promotional scheme and called

it "Caltex Hooded Pump Contest". It calls for participants to estimate the
actual number of liters a hooded gas pump at each Caltex Station will
dispense during a specified period. For the privilege to participate, no
fees or consideration, nor purchase of Caltex products were required.

Foreseeing the extensive use of mails relative to the contest,

representations were made by Caltex with the postal authorities for the
contest to be cleared in advanced for mailing. The acting Postmaster
General opined that the scheme falls within the purview of sections
1954, 1982 and 1983 of the Revised Administrative Code and declined to
grant the requested clearance.

Issues:
W/N construction should be employed in this case and W/N the
contest violates the provisions of the Postal Law

Held:
Yes. Construction of a law is in order if what is in issue is an
inquiry into the intended meaning of the words used in a certain law. As
defined in Black's Law Dictionary: Construction is the art or process of
discovering and expounding the meaning and intention of the author's of
the law with respect to a given case, where that intention is rendered
doubtful, amongst others, by reason of the fact that the given case is not
explicitly provided for in the law. In the present case, the prohibitive
provisions of the Postal Law inescapably require an inquiry into the
intended meaning of the words therein. This is as much as question of
construction or interpretation as any other. The Court is tasked to look
beyond the fair exterior, to the substance, in order to unmask the real
element and pernicious tendencies that the law is seeking to prevent.

Lottery extends to all schemes for the distribution of prize by

chance. The three essential elements of a lottery are: (1) consideration,
(2) prize, and (3) chance. Gift enterprise is commonly applied to a
sporting artifice under which goods are sold for their market value but by
way of inducement, each purchaser is given a chance to win a prize.
Gratuitous distribution of property by lot or chance does not constitute
lottery. In the present case, the element of consideration is not observed.
No payment or purchase of merchandise was required for the privilege to
participate.