Philippine Bar review · Question

Practice question: Requisites and Limitations on Franchises

Multiple Choice Medium

Practice question

Congress grants an entity a single sixty-year authorization to operate an admitted public utility. The entity says the term is valid because it invested heavily. Does investment remove the Article XII, section 11 limit?
  1. No; the single sixty-year grant exceeds the constitutional fifty-year maximum.
  2. Yes; investment always authorizes any term.
  3. Yes; the constitutional maximum governs only small utilities.
  4. Yes; a promise of efficient service creates an exception.
  5. Yes; an exclusive grant has no maximum.

Legal references

  • 1987 Constitution, Article XII, section 11, https://lawphil.net/consti/cons1987.html

Answer this question in flashcards to review your response and continue practicing.