Practice question
A dominant supplier’s contract is labeled a franchise. It imposes a restriction alleged substantially to foreclose rivals. The supplier says the label alone proves it is a permissible franchise and immunizes every clause, while the investigator says every exclusive distribution term is automatically illegal. Which is sound under Section 15(e)?
- Every franchise label creates unlimited immunity
- Every exclusive contract is automatically prohibited
- Only the contract title may be read
- No contract evidence is relevant
- The Commission must examine the restriction and the statutory qualifications; neither categorical position substitutes for that inquiry
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14-15 and 24-27: https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
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