Philippine Bar review · Question

Practice question: Limitations on Management Prerogative

Multiple Choice Hard

Practice question

A company defends two managerial acts with one argument: because it owns the enterprise, no statute or CBA may limit either act. The first contradicts an express statutory protection; the second removes an agreed CBA benefit by memorandum. Which assessment is correct?
  1. Ownership does not remove legal or CBA limits; each act must be assessed against the obligation it contradicts
  2. Ownership conclusively validates both acts
  3. Only the statutory violation matters because CBAs never bind employers
  4. Only the CBA matters because statutes cannot regulate management
  5. The word prerogative prevents inquiry into either act

Legal references

  • Philippine Airlines v.Ahmee, GR221065/221164, April7,2025, main opinion: https://lawphil.net/judjuris/juri2025/apr2025/gr_221065_2025.html

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