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State defined. International personality of a nation does not bar a nation to be considered as a "foreign
country", i.e. California of the American Union, although not internationally recognized, is still refered as
a foreign country.
- "Government" may be defined as "that institution or aggregate of institutions by which an
independent society makes and carries out those rules of action which are necessary to enable men to
live in a social state, or which are imposed upon the people forming that society by those who posses
the power or authority of prescribing them"
- Government functions are two-fold: Constituent and Ministrant
- CONSTITUENT: constitute the very bounds of society (keeping order and protection) and are
compulsory in nature
- keeping of order and providing for the protection of persons and property from violence and
- fixing of legal relations between man and wife and parents and children
- regulation of the holding, transmission and interchange of property and the determination of its
liabilities for debt and crime
- determination of contract rights between individuals
- definition and punishment of crime
- administration of justice in civil cases
- determination of the political duties, privileged and relations of citizens
- dealing of the state of foreign powers
- MINISTRANT: undertaken only by way of advancing the general interests of society, and are merely
- Municipal/Public corporations vs. private corporations
- The Principles determining whether or not a government shall exercise certain of these optional
functions are:
- that a government should do for the public welfare those things which private capital would not
naturally undertake
- that the government should do this things which by its very nature it is better equipped to
administer for the public welfare than any private individual or group of individuals.

- PVTA was established mainly to improve the quality of locally manufactured cigarettes
- The Bacani doctrine has been laid down to rest