The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.
Business Law and Labor Law Updates
RIGHTS OF PURCHASER UNDER THE TRUST RECEIPTS LAW
A letter of credit is a financial device developed by merchants as a safe mode of dealing with sales of goods to satisfy the seemingly irreconcilable interests of a seller, who refuses to part with his goods before he is paid, and a buyer, who wants to have in control of the goods before paying.
The use of credits in commercial transactions serves to reduce the risk of nonpayment of the purchase price under the contract of sale of the goods and to reduce the risk of non-performance of an obligation in a non-sale setting.
The purchaser of goods for value and in good faith, acquires goods free from the entruster’s security interest.
LIABILITY OF ENTRUSTEE FOR LOSS UNDER THE TRUST RECEIPTS LAW
A trust receipt transaction is one where the entrustee has the obligation to deliver to the entruster the price of the sale, or if the merchandise is not sold, to return the merchandise to the entruster.
The risk of loss shall be borne by the entrustee.
Loss of goods, documents or instruments which are the subject of a trust receipt, pending their disposition, irrespective of whether or not it was due to the fault or negligence of the entrustee, shall not extinguish his obligation to the entruster for the value thereof.
RIGHTS OF THE ENTRUSTER UNDER THE TRUST RECEIPTS LAW
Entruster shall be entitled to the proceeds from the sale of the goods, documents or instruments released under a trust receipt.
The entruster may cancel the trust and take possession of the goods, documents or instruments subject of the trust.
The proceeds of sale shall be applied (a) to the payment of the expenses thereof; (b) to the payment of the expenses of re-taking, keeping and storing the goods, documents or instruments; and (c) to the satisfaction of the entrustee’s indebtedness to the entruster.
FALSE ADVERTISEMENT OF CONSUMER PRODUCTS
Advertising means the business of conceptualizing an information about a product through mass media
Failure to reveal an important fact is a form of deceptive advertisement
No person is allowed to advertise any food unless such food products is duly registered and approved