BACHELOR OF SCIENCE IN HOSPITALITY MANAGEMENT

THC 322 – LEGAL ASPECTS IN TOURISM AND HOSPITALITY

CASE STUDY # 3
Case of the Delayed Retirement Village

Submitted by:

RECANA, ROSE ANNE M.

MORILLA, JERIC S.

BSHM Students

BSHM 3-2
Year & Section

Submitted to:

MARY SULEIDE P. MELENDREZ

Instructor, BSHM THC 322

JUNE 29, 2022

Date of Submission
 TITLE: Case of the Delayed Retirement Village

Rafael Valdez is a seasoned restaurateur who made his fortune via his two fine dining
restaurants which he solely owns in the financial district of Makati. But Mr.: Valdez
is still dreaming of bigger things. He would like to build a deluxe hotel, a retirement
village, and spa complex, and many more. In the retirement village, he was able to
convince some friends and suppliers to invest over P200 million and a bank loan was
secured for P300 million. The idea was to build 50 upscale retirement homes adjacent
to his hotel north of Manila for Japanese, Filipino-American, and European markets.
Each unit would sell for P8.2 million and even before they would get the
necessary permits, Mr. Valdez was able to sell eight units already. He was
warned: by the Housing and Land Use Regulatory. Board (HLURB) on the
consequences of preselling without a permit. He promised the buyers to have all the
units constructed by 2010. One year has passed and no work has been done on the
land development aspect of the project. Meanwhile, money invested by partners and
money received as sales were already spent on the new additional restaurant
being built. Dr. Pacifico Morales, one of the Filipino-American retirees, has been
inquiring about his units and no one could give a definite answer.

Name:

Guide Question for your Case Analysis

 What are your impressions of this business venture?
In my impression of this business venture of Mr. Valdez was aggressive to grow
her business. The business thought for expansion of restaurant and retirement
houses in Philippines is a good one but the potential for the place to serve as a
 retirement place is huge and possibly, and as seen, there would be many buyers
to agree and buy the place.

 Can you advertise and sell real estate to tourists desiring to retire in the
Philippines?
Yes, it is possible to advertise to the tourists to buy retirement places in
Philippines. The advertisement must be smartly done, and the marketing agency
should make sure that when people are coming to visit Philippines, the people
fall in love with the beauty and the way of living. It showed this investment option
in Philippines to make a subtle impulsive decision.
 What are the limitations in selling real-estate to foreigners?
The limitations to selling real estate to foreigners are will not be in a mood to
invest so heavily. It is possible that a lot of people don’t have a potential even to
spend so much. They might book the place but do not pay the money and retract
their decisions. It can be decision making issues as investment in real estate is
usually a family sort big decision.
 What violations did Mr. Valdez commit?
The violations done by Mr. Valdez are committed to construct a place by a
particular year of 2010 and not even started to construct it and pre-selling the
place to the people without getting the full permits.
 What are his liabilities to the investors and buyers?
Mr. Valdez liabilities to the investor was P200 million in supplier, P300 million in
bank loan and the money that give of buyers in the units that he sold.
 What are the possible consequences of his violations?
The possible consequences of his violation according to the law of
misappropriation or malversation of funds in Article 217 of penal code was
reclusion Perpetua because the amount involved is more than twelve thousands
and the amount exceeds the latter.

Instructions for Case Analysis:

 Please submit computerized copy. The case analysis is meant to show the
student's ability to apply course concepts and vocabulary to the business problem.
Students are expected to use theories, vocabulary, and models to describe the
components within the case. The case should be written in clear and concise language
that shows the student's ability to synthesize course material and relate it to business
problems. The required format is below. There are six sections. Use the Bold Titles to
begin each section.

1. Overview.
This case analysis shows the overview that has been portray in the situation.
Mr. Valdez was the problem in that case because he did not consult his plan
to build a retirement village and the recruitment was incomplete to construct
it. He was still dreaming bigger than her own restaurant but at the end of that
he was failed to build it. According to law of misappropriation of the funds it is
larceny and a betrayal of trust for the investor and her buyers. The case of
Mr. Valdez was under in Article 217 Penal Code that means, if the amount
involved is more than twelve thousand pesos and the amount exceeds the
latter, the penalty shall be reclusion temporal in its maximum period to
reclusion perpetua because it involved the money of their investor and buyer
that spent for his restaurant.
2. Problem/s
In this case, it shows that Mr. Valdez was not consult to her business and he
didn’t complete her recruitment before he constructs this village. He promised
the buyers to have all the units constructed by 2010. One year has passed
and no work has been done on the land development aspect of the project.
Meanwhile, money invested by partners and money received as sales
already spent by Mr. Valdez on his new additional restaurant being built.
3. Alternative Solutions /
According to this case, the possible alternative solutions are the following:
  Mr. Valdez will set a meeting to the investors and buyers to give him
enough of time to pay the money.
 Mr. Valdez should offer his restaurant and other properties as a collateral
while he didn’t able to pay the money
 Face the consequences and apologized to the investors.

4. Recommendation/s
It has been observe the consequence and problem in this case. As may
recommend, Mr. Valdez should set a meeting to the investors and buyers
to give him enough time to pay the money or offer his restaurant and other
properties as a collateral.

5. Possible Results and Obstacles to Implementation

In this case disagreement are the problem if the buyers and investor did not
agree to him because in this problem it involved their money that they invest
for the retirement village. As a result, the case will be filed against Mr. Valdez

6. References (5-10 references) 10 points.

Chapter “This Land Is Your Land, This Land Is My Land”: Cultural Conflict in
Environmental and Land-Use Regulation. (2019). HLURB.
https://www.taylorfrancis.com/chapters/edit/10.4324/9780429302503-3/land-
land-land-land-cultural-conflict-environmental-land-use-regulation-dennis-coyle

Case of Delayed Retirement Village. (2019). Chegg. Retrieved 2021, from

https://www.chegg.com/homework-help/questions-and-answers/read-case-
delayed-retirement-village-answer-questions--q91829106?
fbclid=IwAR1hDJMzOhL1DspH07D0E-
p0BLZqorPWPfCkQCaFDGWURAufTryzOQZNwas
\

Misappropriation of funds. (2019). Robert Helpend. Retrieved 2022, from

https://www.robertmhelfend.com/federal-defense/misappropriation-of-funds/

What is malversation. (2018). What Is Malversation. Retrieved 2022, from

https://ralblaw.com/what-is-malversation/#:~:text=The%20crime%20of
%20malversation%20of%20public%20funds%20is%20a%20crime,own
%20benefit%20or%20personal%20use.

HK Baker, JR Nofsinger, V Puttonen - … Investor's Guide to Avoiding …, 2020 -

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