Practice question
In the Philippine investment-contract test applied in Power Homes Unlimited v. SEC, the expected profits must come primarily from whose efforts?
- The investor's own efforts alone in every case
- The government's tax collection
- The efforts of others
- The buyer's household consumption
- No person's efforts because effort is legally irrelevant
Legal references
- RA8799, Securities Regulation Code, Section3.1: https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html
- Power Homes Unlimited v. SEC, GR164182, February26 2008, main decision: https://lawphil.net/judjuris/juri2008/feb2008/gr_164182_2008.html
- SEC v. Prosperity.Com, GR164197, January25 2012, main decision: https://lawphil.net/judjuris/juri2012/jan2012/gr_164197_2012.html
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