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G.R. No. L-19650 September 29, 1966
CALTEX (PHILIPPINES), INC vs. ENRICO PALOMAR, in his capacity as THE POSTMASTER GENERAL

FACTS:

In 1960, Caltex launched their "Caltex Hooded Pump Contest", which called for participants to estimate the actual number of liters a hooded gas pump at each Caltex station will dispense during a specified period .Participants were not required consideration nor pay a fee. No purchase of Caltex products were also required to be made. Entry forms were to be made available upon request at each Caltex station where a sealed can would be provided for the deposit of accomplished entry stubs.

Foreseeing the extensive use of the mails not only as amongst the media for publicizing the contest but also for the transmission of communications relative thereto, representations were made by Caltex with the postal authorities for the contest to be cleared in advance for mailing, having in view the Anti-lottery provisions of the Revised Administrative Code (sections 1954(a), 1982 and 1983). Postmaster General Enrico Palomar denied the request, arguing that the said contest violated the provisions of the law on subject. CALTEX sought judicial intervention wherein the trial court ruled in its favor. Respondent Palomar appealed, posing the same argument that the said contest violated the prohibitive provisions of the Postal Law.

Issue:
Whether or not the "Caltex Hooded Pump Contest" fell on the purview of the prohibitive provisions of the Postal Law.

HELD:
The Postal Law does not allow “any lottery, gift enterprise, or scheme for the distribution of money, or of any real or personal property by lot, chance, or drawing of any kind".

The Supreme Court held that the "Caltex Hooded Pump Contest" by CALTEX is not a “lottery” nor a “gift enterprise” but rather a gratuitous distribution of property by chance, which the law does not prohibit. The term "lottery" extends to all schemes for the distribution of prizes by chance,

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