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ARELLANO UNIVERSITY SCHOOL OF LAW
Commercial Law 2
Atty. Rochelle Marie J. Cortez, MDC, LLM
Recommended Books:
• Special Commercial Laws by Atty. Raiza Nicole G. Mendiola-Ladlad
• Commercial Law II by Timoteo Aquino (2024)
INSURANCE LAW
Course Outline
INSURANCE CODE (P.D. 1460 as amended by Republic Act No. 10607)
INTRODUCTION
Governing Laws
CONCEPT
CHARACTERISTICS OF INSURANCE
DISTINGUISHING ELEMENTS
CLASSES OF INSURANCE
VARIABLE CONTRACTS
• Concept
• Perfection
• Consent; Cognition
• Parties to insurance contract
• Subject Matter of Insurance
INSURABLE INTEREST
• Concept
• Basis of insurable interest in life and health insurance
• Basis of insurable interest in property insurance
• Change of insurable interest
• Distinctions between insurable interest in life and in property
• Other Pertinent Clauses
DEVICES ON ESTIMATION/CONTROL OF RISK OR LOSS
• Concealment
• Test of Materiality of Information
• Representations
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• Remedies in case of Concealment or False Representation; Incontestability
• Right of rescission; when to exercise
• Two-year period to contest life insurance
• Purpose of the 2-year period
• Clear and convincing evidence
• Defenses not barred by incontestability
• Warranties
• Condition
• Exceptions
POLICY OF INSURANCE
• Contents of the Policy
• Kinds of Policy
• Cover Notes
PREMIUM
• Cash and Carry Rule
• Exceptions to the Cash and Carry Rule
• Return of premiums
• Cancellation of Policy
• Prescriptive period for legal action
PERSONS ENTITLED TO RECOVER ON THE POLICY
• Beneficiary
• Limitations on the designation of beneficiary
REINSTATEMENT OF A POLICY
LOSS
NOTICE/PROOF OF LOSS
DOUBLE INSURANCE
• Concept
• Requisites of Double Insurance
• Distinguished from Over-insurance
• Rules on payment where there is over-insurance by double insurance
• Other insurance clause
REINSURANCE
• Concept
• Insured’s right to recover from reinsurer
• When reinsurance is mandatory
• Distinguished from double insurance
• Duty of reinsured to disclose facts
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NOTES ON SPECIFIC TYPES OF INSURANCE
MARINE INSURANCE
• Concept and Scope
• Perils covered
• All-risks marine policy
• Insurable interest
• Concealment
• Representations
• Implied warranties in marine insurance
• Seaworthiness
• When complied with; exceptions
• Warranty that necessary documents are carried
• Warranty against improper deviation
• Loss
• Actual Loss
• Constructive Total Loss
• Cases of constructive total loss
• Abandonment
• Co-insurance
FIRE INSURANCE
• Nature
• Friendly vs. Hostile Fire
• Alteration
• Measure of Indemnity
• Option to rebuild
CASUALTY INSURANCE
• Concept
• Insurable Interest
• “Accident” and “Accidental” in casualty insurance
SURETYSHIP
• Concept
• Liability of surety
LIFE INSURANCE
• Nature
• When payable
• Life insurance of a minor
• Kinds of Life Insurance
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• Liability of insurer in case of suicide
• Assignment of life insurance policy
• Measure of indemnity
• Non-default options
COMPULSORY MOTOR VEHICLE LIABILITY INSURANCE (CMVLI)
• Legal Basis
• Nature
• Persons covered
• No-fault indemnity claim
COMPULSORY INSURANCE COVERAGE FOR AGENCY-HIRED WORKERS
CLAIMS SETTLEMENT
• Period to pay insurance claim
• Delay in the payment of claim
• Unfair claim settlement practices
SUBROGATION
• Cases when subrogation does not apply
THE BUSINESS OF INSURANCE
• Paid-up capital
POWERS OF THE INSURANCE COMMISSION
• In general
• Rule-making power
• Other powers
• Power to sanction
• Adjudicatory power
• Judgment and appeal
TRANSPORTATION LAW
Course Outline
GOVERNING LAWS
• Concept of Public Utility
• Constitutional Limitations on operation of public utilities
• General Conditions for the grant of franchise/certificate of public
Convenience and necessity
• Pertinent Guiding Principles
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COMMON CARRIER
• Tests of Common Carrier
• Pipeline Operators
• Limited clientele/integral part of business
• School bus operator
• Forwarder
• Arrastre Operator
• Stevedore
• Travel agency
• Lack of CPCN
• Compared with Private Carrier
• Not commercially offered to the public
• Registered Owner Rule
• Kabit System
• Boundary System
• Owner not exempt from liability
VIGILANCE OVER THE GOODS
• Duration of liability
• Presumption of negligence
• Defenses of common carriers
• Fire
• Mechanical failure
• Fault of shipper
• Improper packaging
• Order of a public authority
• Stipulation limiting liability of carrier
• Invalid stipulations
• Duty to accept goods
• Grounds for valid refusal to accept goods
• Duty to deliver goods
SAFETY OF PASSENGERS
• Duration of liability
• Presumption of Negligence
• Liability for acts of employees
• Liability for acts of strangers
• Effect of stipulation on liability
• Contributory negligence of the passenger
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• Passenger’s Baggage
• Checked-in Baggage
• Hand-carried Baggage
• Prescriptive Period and conditions precedent
• Overland transportation of goods and coastwise shipping
• COGSA
• One-year period to file legal action
• Notice of claim not a condition precedent
• Limit of liability
OTHER CASES INVOLVING BREACH OF
CONTRACT OF CARRIAGE
• Luggage
• Taxi fare
• Checking of travel documents
• Bad faith
• Upgrade
MARITIME
• Limited Liability Rule
• Exceptions to the Limited Liability Rule
• Charter Party
• Kinds of Charter Party
• Liability to third persons
• Clauses that may be included in a charter party agreement
• Loans on Bottomry and Respondentia
• Distinguished from ordinary loan
• Effect of loss of the vessel/cargo
• Cases where the loan is regarded as simple loan
• Averages
• Classes of average and the persons liable
Simple average
General average
• Collisions
• Pertinent rules on collision
• Zones in collision
• Doctrine of Error in Extremis
• Arrival under stress
• Shipwreck
• Pertinent Provisions on Shipwreck
• Transhipment
• Bill of Lading
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• Demurrage
WARSAW CONVENTION
• Categories of international transportation
• Jurisdiction
• Claims covered
• Hague Protocol
• Successive air carriers
INTELLECTUAL PROPERTY LAW
Course Outline
V. INTELLECTUAL PROPERTY
Republic Act No. 8293, as amended
• State Policy
• Intellectual Property Rights
• Functions of Intellectual Property Office (IPO)
• Inter Partes Proceedings of the IPO
• Protection of Undisclosed Information
• Copyright, Patent and Trademark, distinguished
1. PATENTS
• Concept
• Three-Fold Purpose
• Patentable inventions
• Requisites of Patentability
• Registration needed
• Non-patentable inventions
• Term of patent
• Ownership of Patent
• Commissioned Inventions
• Created in the course of employment
• First-to-File Rule
• Confidentiality before Publication
• Novelty and Non-Prejudicial Disclosure
• Right of Priority
• Cancellation of Patent
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• Remedies of the true and actual inventor
• Rights conferred by Patent
• Limitations on Patent
• Patented drugs (R.A. No. 9502)
• Doctrine of Patent Exhaustion
• Prior User
• Use by Government
• Rule on Divisional Applicants
• Patent Infringement
• Inequitable Conduct
• Doctrine of File Wrapper Estoppel
• Defenses in an Action for Infringement
• Licensing
• Voluntary Licensing
• Mandatory Clauses
• Prohibited Clauses
• Compulsory Licensing
• Grounds for Compulsory Licensing
• Terms and Conditions of Compulsory License
• Assignment and Transmission of Patent
2. UTILITY MODEL
• Concept
• Term
• Conversion of Applications
• Parallel Applications
3. INDUSTRIAL DESIGN
• Concept
• Term of Protection
• Prior Actual Use
• Acquisition of Ownership of Mark and Tradename
• Functions of a Mark
• Non-registrable Marks
• Surname as Trademark
• Related Goods
• Well-known Mark
• Geographic, Generic and Descriptive Terms; Secondary Meaning
• “Pale” and “Pilsen” are generic words
• “Master” is neither a generic nor descriptive term
• Secondary Meaning
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• Suggestive Term
• Trademark Dilution
• Rule on Division of Application
• Certificate of Registration; Duration
• Actual Use
• Rights conferred by registration
• Tests to determine confusing similarly
• Types of Confusion
• Infringement and Remedies
• Unfair Competition
• Elements of Unfair Competition
• Trademark Infringement vs. Unfair Competition
• No prejudicial question
4. COPYRIGHT
• Basic Principles
• Copyright vs. Tradename
• Copyrightable Works
• Original
• Derivative Works
• Non-Copyrightable Works
• Game show format
• Rights of Copyright Owner
• Economic Rights
• Moral Rights
• Rules on Ownership of Copyright
• In General
• Joint Authorship
• Work created in the Course of Employment
• Commissioned Work
• Audiovisual Work
• Letters
• Anonymous and Pseudonymous Works
• Term of Protection
• Term of Moral Right
• Calculation of Term
• Limitations on Copyright
• General Limitations
• Debates
• Materials for the blind, etc.
• Fair Use of a Copyrighted Work
• Work of Architecture
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• Private use of published work
• Repographic reproduction by libraries
• Reproduction of computer program
• Importation for personal purposes
• Copyright Infringement
• Piracy
• Subconscious Copying Doctrine
• Plagiarism
GRADING SYSTEM
20% -Class Recitation, Seatworks and Group work
30%- Midterms
50%-Finals
