Law Summary
SECTION 1: Grant of Franchise
- Legal Principle/Provision: This section grants All-in-One-Service, Incorporated a franchise to conduct a messenger and delivery express service outside the City of Manila.
- Key Definitions:
- "Franchise": Authorization to operate a specific service.
- "Grantee": All-in-One-Service, Incorporated.
- Requirements/Procedures:
- Conduct services for packages and oral messages at regular intervals or in rush emergency cases.
- Services may be offered at any hour.
- Timeframes/Deadlines: The franchise is valid for a period of fifty years from the approval date of this Act (June 17, 1961).
- Penalties/Liabilities:
- The grantee cannot handle items defined in Sections 1954 and 1955 of the Administrative Code; non-compliance could lead to franchise repeal.
- Non-mailable items received must be forfeited to the government or returned to the sender when feasible.
SECTION 2: Service Charges
- Legal Principle/Provision: The grantee has the authority to set its own service charges.
- Key Definitions: None specified in this section.
- Requirements/Procedures:
- Service charges must be approved by the Public Service Commission.
- Timeframes/Deadlines: None specified.
- Penalties/Liabilities: None specified.
SECTION 3: Tax Obligations
- Legal Principle/Provision: The grantee must pay taxes in addition to those outlined in the Internal Revenue Code.
- Key Definitions:
- "Net profit": The company's profit after deducting all expenses.
- Requirements/Procedures:
- An additional annual tax of one percent on net profit must be paid.
- Timeframes/Deadlines: None specified.
- Penalties/Liabilities: Failure to comply with tax obligations could result in penalties as per tax regulations.
SECTION 4: Conditions of the Franchise
- Legal Principle/Provision: The franchise is subject to amendments, alterations, or repeal based on public interest.
- Key Definitions: None specified in this section.
- Requirements/Procedures:
- The franchise should not be interpreted as exclusive; it may be modified or revoked.
- Timeframes/Deadlines: None specified.
- Penalties/Liabilities: Repeal of the franchise may occur if deemed necessary for public interest.
SECTION 5: Bond Requirement
- Legal Principle/Provision: The grantee must secure a bond.
- Key Definitions:
- "Bond": A financial guarantee against potential claims.
- Requirements/Procedures:
- A bond in the amount of five thousand pesos must be filed to cover any customer losses or damages.
- Timeframes/Deadlines: None specified.
- Penalties/Liabilities: Failure to file the required bond could jeopardize the franchise.
SECTION 6: Effectivity
- Legal Principle/Provision: This Act becomes effective upon approval.
- Key Definitions: None specified in this section.
- Requirements/Procedures:
- The franchise takes effect immediately from the approval date (June 17, 1961).
- Timeframes/Deadlines: Effective immediately upon approval.
- Penalties/Liabilities: None specified.
Key Takeaways
- All-in-One-Service, Incorporated is granted a 50-year franchise for messenger and delivery services outside Manila.
- The company must comply with regulations regarding non-mailable items, and violations could lead to franchise repeal.
- Service charges are subject to approval by the Public Service Commission.
- The grantee must pay an additional 1% tax on net profits.
- A bond of 5,000 pesos is required to cover customer losses or damages.
- The franchise can be amended or repealed based on public interest considerations.