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Philippine Bar review · Question

Practice question: Requisites and Limitations on Franchises

Multiple Choice Hard

Practice question

An electricity-distribution operator is stipulated to be a public utility under RA 11659. It proposes an exclusive sixty-year franchise and appoints an alien as its managing officer. It argues that all restrictions disappeared because RA 11659 liberalized some public services. Which analysis is correct?
  1. Every public service is now free of every constitutional condition.
  2. RA 11659's treatment of other services removes all limits on electricity distribution.
  3. The stipulated public utility remains subject to the constitutional nonexclusivity, fifty-year maximum, and Filipino executive-and-managing-officer requirements.
  4. Only the title of the proposed franchise matters.
  5. The restrictions apply only if the operator consents.

Legal references

  • 1987 Constitution, Article XII, section 11, https://lawphil.net/consti/cons1987.html
  • Republic Act No. 11659, section 4 amending Commonwealth Act No. 146, section 13, https://lawphil.net/statutes/repacts/ra2022/ra_11659_2022.html

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