1. What business practices does the Philippine Competition Act prohibit?

(5pts)
The law prohibits business practices that restrict market competition through anti-competitive
agreements and abuse of a dominant position and introduces a compulsory notification regime
for certain mergers and acquisitions. It additionally prescribes administrative and criminal
penalties for violations of the law. The Competition Act has extraterritorial effect, meaning that
it is enforceable against acts committed within or outside the Philippines which affect trade,
industry or commerce in the Philippines.
2. What are Anti-Competitive Agreements? (5pts)

These are agreements that substantially prevent, lessen or restrict the competition among
businesses or firms.

3. How do firms abuse their dominant position? (5pts)

In the conduct of their business, dominant companies considering their size, scope and
position of economic strength may have a disproportionately severe effect on the market. It is a
conduct of an entity whether a company or an individual with dominant position that
substantially prevents restricts or lessens competition in the market.
4. Mario Santos was issued Policy No. 7777 of the Travellers Life Insurance Co. on
January 15, 2017. Mario Santos is married to Katrina whom he has three legitimate
children. He, however, designated Liza, his common-law-wife, as the revocable beneficiary.
Mario Santos referred to Liza on his application and policy as the legal wife. Three years
later, Mario Santos died. Liza filed his claim for the proceeds of the policy as the
designated beneficiary therein. The widow, Katrina, also filed a claim as the legal wife. To
whom should the proceeds of the insurance policy be awarded? (5pts)

If Mario and Liza are guilty of adultery and concubinage, Liza cannot claim the proceeds of
the insurance policy. Under Section 28, moreover, each party to a contract of insurance must
communicated to the other, in good faith, all facts within his knowledge which are material to the
contract and as to which he makes no warranty, and which the other has not the means of
ascertaining and therefore it is rescissible. The proceeds shall go to the Katrina, the legal wife.

5. May a member of the MNLF be insured with a company licensed to do business under
the Insurance Code of the Philippines? (5pts)

Under Sec. 7 of the Insurance Code, anyone except a public enemy may be insured. A public
enemy is a nation with whom the Philippines is at war, and it includes every citizen or subject of
such nation. Considering the circumstances in the status of a member of MNLF, they are not a
public enemy and considered citizens of the Philippines and therefore they can be insured.
 6. In return for the 20 years of faithful service of Amelia as a house helper to Jojo, the
latter promised to pay Php1,000,000.00 to Amelia’s heirs if she dies in an accident
by fire. Amelia agreed. Is this an insurance contract? (5pts)

The Insurance Code states that every person, partnership, association, or corporation duly
authorized to transact insurance business as elsewhere provided in this code, may be an insurer.
The term "doing an insurance business" or "transacting an insurance business", within the
meaning of this Code, shall include:

(a) making or proposing to make, as insurer, any insurance contract;

(b) making or proposing to make, as surety, any contract of suretyship as a vocation and
not as merely incidental to any other legitimate business or activity of the surety;

(c) doing any kind of business, including a reinsurance business, specifically recognized
as constituting the doing of an insurance business within the meaning of this Code;

(d) doing or proposing to do any business in substance equivalent to any of the foregoing
in a manner designed to evade the provisions of this Code.

In the present case, applying provisions of the Insurance Code the fact that no profit is
derived from the making of insurance contract this shall not be deemed doing or transacting of an
insurance business, therefore this is not an insurance contract.

7. X insured the life of his wife Y. Later, they were legally separated pursuant to a judgment
of a court. Y dies after the legal separation. (10pts)

a. Can X recover the insurance proceeds?

Yes. The Insurance Cod states that every person has an insurable interest in the life
and health of himself, of his spouse and of his children. Upon entering to the contract,
the former wife does not lose its right to recover the proceeds.

b. Will your answer be the same if X insured the life of Y when they were already
legally separated?
Yes. It can be noted further, the code also stipulates that every person has an
insurable interest to any person on whom he depends wholly or in part for education
or support, or in whom he has a pecuniary interest. The former wife has a pecuniary
interest in the liabilities of their former conjugal property and their children especially
for the support of their children.
8. Does the buyer of the goods, after the perfection of the contract and before the delivery of
the articles purchased, have insurable interest in the goods? (5pts)

Under the Code, a carrier or depository of any kind has an insurable interest in a thing
held by him as such, to the extent of his liability but not to exceed the value thereof.

9. Maximo owns a condominium unit presently insured with Travellers Insurance Co. for
Php1,000,000.00. Maximo later sold the condominium unit to Oscar. Somehow, Oscar
failed to transfer the insurance policy to his name from Maximo. Subsequently, a fire of
unknown origin destroyed completely the condominium unit. Who may collect the
insurance? (5pts)
The same still goes to Maximo to whom the real property is named. The Insurance Code
provides that the transfer of a thing insured does not transfer the policy, but suspends it until
the same person becomes the owner of both the policy and the thing insured.