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Philippine Bar review · Question

Practice question: Service Charge (RA 11360; DO 242, s. 2024)

Multiple Choice Hard

Practice question

A sports club collects amounts added to service bills for rendered work. It denies any possible coverage solely because it is not a hotel or restaurant. Which is correct?
  1. The similar-establishment rule and express sports-club example must be considered.
  2. Only establishments using the word hotel qualify.
  3. The word club creates complete exemption.
  4. All billed charges are automatically government taxes.
  5. Only tips paid personally to owners are covered.

Legal references

  • RA 11360 Sections 1-2 amending Labor Code Article 96: https://lawphil.net/statutes/repacts/ra2019/ra_11360_2019.html
  • DOLE Department Order 242 s.2024, Sections 1-2 and 6-7, signed registered issuance: https://naro.law.upd.edu.ph/storage/01JWABFNVSG2YDB7B30BCY9PQB.pdf

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