Question

Mr. Santos purchased a car from Mr. Cruz. After a month of using the car, Mr. Santos discovered that there were several hidden defects in the vehicle, which were not disclosed by Mr. Cruz during the sale. Feeling deceived and aggrieved, Mr. Santos decided to file a case in court to seek redress for his damages.

During the proceedings, Mr. Santos's lawyer cited a recent Supreme Court decision that held sellers responsible for undisclosed defects in the goods sold. However, the lawyer representing Mr. Cruz argued that this decision should not apply because the case at hand involves a private sale between individuals, and not a commercial transaction.

Based on the given scenario, analyze the effect and application of judicial decisions in the Philippines. Discuss the following points:

1. Explain the concept of judicial decisions and their role in the Philippine legal system.
2. Discuss the relevance and applicability of judicial decisions in resolving disputes.
3. Assess whether or not the Supreme Court decision cited by Mr. Santos's lawyer should apply in the case of the private sale of the car.
4. Cite any relevant laws or provisions to support your analysis.