Case Summary (G.R. No. L-29881)
Background of the Case
In August 1968, Philippine Refining Company initiated a sales promotion called "Grand Slam," encouraging participation through a matching game that offered prizes for correct submissions of product labels. The promotion advertised various prizes, including cash and electronics, which could be obtained by fulfilling certain requirements, such as submitting half pictures found on the product labels or requesting free half-photos through mail.
Issuance of Fraud Order
On October 7, 1968, Enrico Palomar, in his capacity as Postmaster General, declared the "Grand Slam" promotion to be a lottery under the Postal Law through "Fraud Order No. 2." This order instructed postal officials to return any mail to the Philippine Refining Company with a notation of "fraudulent," effectively stifling the promotion.
Legal proceedings
Following the issuance of the Fraud Order, Philippine Refining Company filed a complaint on October 15, 1968, seeking a mandatory injunction against its enforcement, asserting that the promotion did not involve consideration and thus was not a lottery. The Court of First Instance temporarily granted an injunction on October 16, 1968, requiring Palomar to refrain from implementing the Fraud Order.
Trial Court Decision
After hearings, the trial court ruled on November 14, 1968, that the Grand Slam promotion did not constitute a lottery as it lacked the required element of consideration. The court stated that participation could occur without making a purchase and that the promotional scheme did not increase the product price.
Appeal Process
Palomar, through the Solicitor General, filed a notice of appeal on November 20, 1968. By March 1969, it was determined that due to the amendment of R.A. 5440, a petition for review on certiorari was necessary for this case, which was subsequently filed on May 15, 1969, and admitted by the Supreme Court on May 20, 1969.
Issue on Consideration
The core legal issue was whether the element of consideration existed in the Grand Slam promotion, which would classify it as a lottery per the Postal Law. Palomar argued that the necessity of purchasing products to participate indicated the presence of consideration, while Philippine Refining Company contended that the promotion retained its original pricing and did not require any additional expenditure for entry.
Court's Ruling
The Supreme Court referenced its previous rulings and established that promotions allowing for the acquisition of prizes without additional payment beyond the usual price of products do not constitute
...continue readingCase Syllabus (G.R. No. L-29881)
Case Citation
- G.R. No. L-29881
- Date of Decision: August 31, 1988
- Jurisdiction: Supreme Court of the Philippines
Background of the Case
- The case arises from a petition for review filed by Hon. Enrico Palomar against the Court of First Instance of Manila, Branch XIV, regarding the validity of "Fraud Order No. 2."
- The order was issued by Palomar in his official capacity as Postmaster General, declaring the promotional scheme "Grand Slam" by Philippine Refining Co., Inc. as a lottery under the Postal Law.
- The promotional scheme involved submission of matching halves of pictures found on product labels to win various prizes, including cash and consumer goods.
Factual Context
- Promotion Details:
- The "Grand Slam" promotion was introduced in August 1968 for products such as "Breeze," "Rinso," "Lifebuoy," and "Lux."
- Participants could win prizes by submitting matching halves of pictures, which were available on product labels.
- Advertisements indicated that free half-photos could be obtained by requesting them through mail, accompanied by a self-addressed stamped envelope.
- Prizes included items like transistor radios, wristwatches, sewing machines, TV sets, refrigerators, and a Volkswagen 1200.
Procedural History
- On October 7, 1968, Palomar issued "Fraud Order No. 2," claiming the promotion constituted a lottery and directed all postmasters to return mail addressed to the private respond