LAO H.

ICHONG, in his own behalf and in behalf of other alien residents, corporations and
partnerships adversely affected by Republic Act No. 1180, petitioner
vs.
JAIME HERNANDEZ, Secretary of Finace, and MARCELINO SARMIENTP, City Treasurer of Manila,
respondents

G.R. No. L-7995

May 31, 1957

FACTS:
Republic Act No. 1180 or commonly known as “An act to Regulate the Retail Business”
was passed by the Congress. The said law provides for a prohibition against foreigners as
well as corporations owned by foreigners from engaging from retail trade in our
country. This was protested by the petitioner in this case. According to him, the said law
violates the international and treaty of the Philippines therefore it is unconstitutional.
Specifically, the Treaty of Amity between the Philippines and China was violated
according to him.

ISSUE:
Whether or not Republic Act 1180 is a valid exercise of police power.

HELD:
According to the court, RA 1180 is a valid exercise of police power. It was also then
provided that police power cannot be bargained away through the medium of a treaty or a
contract. The court also provided that RA 1180 was enacted to remedy a real and actual danger
to national economy posed by alien dominance and control. If ever the law infringes upon the
said treaty , the latter is always subject to qualification or amendment by a subsequent law and
the same may never curtain or restrict the scope of the police power of the state.