Home›Bar Review›2016›Mercantile Law›Question XV
Question XV
ABC Corp. is engaged in the pawnshop business involving cellphones, laptops and other gadgets of value. In order to expand its business and attract investors, it offered to any person who invests at least P100,000.00 a "Promissory Note" where it obligated itself to pay the holder a 50% return on investment within one month. Due to the attractive offer, many individuals invested in the company but not one of them was able to realize any profit after one month. Has ABC Corp. violated any law with its scheme? Explain. (5%)
Model answer · ALAC
Answer — Legal basis — Application — Conclusion.
AI-drafted in ALAC form and AI-verified against landmark authorities — refined with every round of verification.