Moving treaty or moving rd boundaries rule 3 state

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Unformatted text preview: o decide what and how much shall be produced, and on 222 competition, among producers who will manufacture it. (Energy Regulatory Board v. CA G.R. No. 113079, April 20, 2001) Q: Are monopolies prohibited by the Constitution? A: Monopolies are not per se prohibited by the Constitution but may be permitted to exist to aid the government in carrying on an enterprise or to aid in the interest of the public. However, because monopolies are subject to abuses that can inflict severe prejudice to the public, they are subjected to a higher level of State regulation than an ordinary business undertaking. (Agan, Jr. v. PIATCO, G.R. No. 155001, May 5, 2003) Q: Are contracts requiring exclusivity void? A: Contracts requiring exclusivity are not per se void. Each contract must be viewed vis‐à‐vis all the circumstances surrounding such agreement in deciding whether a restrictive practice should be prohibited as imposing an unreasonable restraint on competition. (Avon v. Luna, G.R. No. 153674, December 20, 2006) Q: What is prohibited by Section 19? A: Combinations in restraint of trade and unfair competition are prohibited by the Constitution. (Sec. 19, Art. XII, 1987 Constitution) Q: When is a monopoly considered in restraint of trade and thus prohibited by the Constitution? A: From the wordings of the Constitution, truly then, what is brought about to lay the test on whether a given an unlawful machination or combination in restraint of trade is whether under the particular circumstances of the case and the nature of the particular contract involved, such contract is, or is not, against public policy. (Avon v. Luna, G.R. No. 153674, December 20, 2006) Q: Does the government have the power to intervene whenever necessary for the promotion of the general welfare? A: Yes, although the Constitution enshrines free enterprise as a policy, it nevertheless reserves to the Government the power to intervene whenever necessary for the promotion of the general welfare, as reflected in Sections 6 and 19 of Article XII. (A...
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This document was uploaded on 03/12/2014.

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