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Question

JURISDICTION: G. Jurisdiction vs. Exercise of Jurisdiction

Mr. Reyes, a resident of Manila, filed a complaint for damages against ABC Corporation, a foreign company based in the United States, in the Regional Trial Court (RTC) of Quezon City. ABC Corporation, through its counsel, filed a motion to dismiss the complaint on the ground of lack of jurisdiction. The counsel argued that since ABC Corporation is a foreign company and does not have a local presence in the Philippines, the Philippine courts do not have jurisdiction over the case. Mr. Reyes opposed the motion, claiming that the RTC of Quezon City has jurisdiction based on the nature of the complaint.

Discuss the concept of jurisdiction and the distinction between jurisdiction and the exercise of jurisdiction. Analyze the arguments of ABC Corporation and Mr. Reyes, and explain whether the RTC of Quezon City has jurisdiction to hear and decide the case. Support your answer with relevant laws and jurisprudence.

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Answer