AMENDING REPUBLIC ACT NO. 1180 ENTITLED "AN ACT TO REGULATE THE RETAIL BUSINESS".

• Number: Presidential Decree No. 714
• Sections: 3

Preamble

WHEREAS, the statutory definition in Republic Act No. 1180,

otherwise known as the Retail Trade Nationalization Law, of the term

"retail business" is vague and ambiguous, and this ambiguity has given

rise to conflicting theories as to its precise scope;

WHEREAS, it is believed to be not within the intendment of

the said nationalization law to include within its scope sales made to

industrial or commercial users or consumers;

WHEREAS, it is likewise in the interest of the national

economy to exclude from the provisions of the said law the business of

restaurants located in hotels, irrespective of the amount of capital, as

long as the restaurant is merely incidental to the hotel business;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,

do hereby order and decree:

Section 1

SECTION 1. Section 4 of Republic Act No. 1180 is hereby

amended to read as follows:

"SECTION 4. As used in this Act, the term "retail

business" shall mean any act, occupation or calling of habitually

selling direct to the general public merchandise, commodities or goods

for consumption, but shall not include:

"(a) a manufacturer, processor, laborer or worker selling to

the general public the products manufactured, processed, or produced by

him if his capital does not exceed five thousand pesos.

"(b) a farmer or agriculturist selling the product of his

farm.

"(c) a manufacturer or processor selling to industrial mid

commercial users or consumers who use the products bought by them to

render service to the general public and/or to produce or manufacture

goods which are in turn sold by them.

"(d) a hotel-owner or keeper operating a restaurant,

irrespective of the amount of capital, provided that the restaurant is

necessarily included in, or incidental to, the hotel business."

Section 2

SECTION 2. This decree shall take effect immediately.

Done in the City of Manila, this 28th day of May, in the year of

Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary