Inchong etc. et al vs.

Hernandez,
etc. and Sarmiento

Facts:
Republic Act No. 1180 An Act to
Regulate the Retail Business
-

In effect nationalizes the retail

trade business (prohibition
against ownership of alien
businesses)

Petitioner brought this action to obtain

a declaration that said act is
unconstitutional.

Alleged Violation of International

Treaties
-

1. It denies alien equal protection

of the laws
2. The subject of the act is not
expressed or comprehended in
the title thereof
3. The act violates
international and treaty
obligations
Respondents (Solicitor-General) and
Fiscal of City of Manila contend that
1. The act was passed in the
valid exercise of the Police
power of which is authorized
in the constitution in the
interest of national
economic survival
2. The act has only one subject
embraced in the title
3. No treaty or international
obligation is infringed
Alien Control and Dominance
-

According to the offered

evidence of the statistics, it is
true of course that Filipinos

have the edge in the number of

retailers, but aliens more than
make up for the numeral gap
thru their assets and gross sales
which average six and seven
times than of those of Filipinos.
The Filipino retailers are
practically helpless in matters of
capital, credit, price, and supply.
Ex. Hoarding of commodities
and creating of artificial scarcity
(Led to the creation of RA No.
1168)

Charter of the United Nations

and of the United Nations
General Assemble
o We find no merit. The UN
charter imposes no strict
or legal obligations
regarding the rights and
freedom of their subjects
o Can be inferred from the
fact that members such
as Denmark and Norway
prohibit the same.
Treaty of Amity (ChinaPhilippines) April 18, 1947
o Guarantees equal
treatment to the Chinese
nationals upon the same
terms as the nationals of
any other country

Issue:
Whether or not Republic Act No. 1180
is constitutional?
Held:
The court ruled in favor of the
respondent denying the petition.

The law was enacted to address

real, actual threat, and danger
to national economy.
Clearly falls on the scope of
Police Power

active of all
governmental processes,
the most essential and
illimitable
-

Police power
o Derives its existence from
the very existence of the
state itself; it does not
need to be expressed or
defined in its scope; it is
said to be co-existent
with self-protection and
survival, and as such it is
the most positive and

It cannot be said to be void for

supposed conflict with the
treaty obligations because no
treaty has actually been
entered into on the subject and
the police power may not be
curtailed or surrendered by any
treaty or any other conventional
agreement.
Police power, inherent and
could not be bargained away or
surrendered through the
medium of treaty.