FLOW OF PRESENTATION

PART I (Intro) (mabilis lng to mga 1-1.5 mins siguro) o Land Cruiser TV Ad o Land Cruiser speeding on a highway o Some Broken Engine Sound o Smoking hood o Picture of Engine + Close up o Blackout PART II (PRE-NEGOTIATION) o *Phone rings* (CSI answers) CSI (Answering Machine) Thank you for calling CSI. For English Instructions, press 1. For Filipino Instructions, press 2.

Pablo (poker #1 face) CSI (Answering Machine) PABLO (Impatient) CSI (Answering Machine) PABLO CSI (Agent) PABLO (Angry Troll Face) PRINCIPLE #1 CSI (Agent) PABLO CSI (Agent) For Car of the Month inquiry, press 1. For Zero Percent Downpayment inquiry, press 2. For Special Discounts and Other Related Promos inquiry, press 3. If you wish to talk to a Customer Service Representative, press 4. #4 For Exclusive VIP Members Transactions, press 1. For Other Transactions, press 2. For... TWO!!!!!!!!!!!!!!!!!!! RAWR!!! Thank you for Calling... I WANT AN ENGINE REPLACEMENT NOW!!!

RECOGNIZE AND UNDERSTAND EMOTIONS Alright, Sir, I understand you are upset. But before anything else may I know your name please? PABLO PABLO MAGALONA... Okay, Sir Pablo, upon checking, our records show that you bought a 2008 Toyota Land Cruiser V6 last November 27, 2008. Am I speaking to the right person sir? AH HINDEEEE! HINDI AKO YAN! IBANG TAO SIGURO YON! SYEMPRE AKO YAN! ANO KLASENG TANONG YAN?!

PABLO

PRINCIPLE #2

ALLOW THE OTHER SIDE TO LET OFF STEAM

CSI (Agent): Alright Sir Pablo, how may I help you sir? PABLO This is ridiculously unacceptable! The engine of my Brand New Land Cruiser gave up already just less than a year since I bought it! As a matter of fact it only has a mileage of 12,000 km! What kind of brand new SUV is this?! I haven't even paid the full amount of the price and now I will be shelling out money already for its repair! This is utterly unacceptable! The thought alone that I will have my brand new SUV repaired FREAKS ME OUT! $#!%@^!$#^@@#$%! PRINCIPLE #3 ACKNOWLEDGE HIS EMOTIONS AS LEGITIMATE

CSI (Agent): Okay Sir Pablo, I understand it was a very unfortunate incident and I can see you are upset with it. Let me assure you, however, Mr. Pablo, that our company is committed to look into this matter very seriously. Being one of our deeply valued clients, Sir Pablo, would you be willing to have your car checked by our Automobile Repair Specialists? PABLO CSI (Agent) Aba'y dapat lang!!! Noted! One more thing Sir Pablo, as to your request for engine replacement, Sir Pablo, would you like me to set you up an appointment with our Warranty Services Officer for proper evaluation of your warranty status? Okay Very well, Sir, thank you for calling CSI. Etc...

PABLO CSI (Agent)

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Preparation for Negotiation (The table below will not be shown in the projector. This is for elaboration or discussion purposes in class. So one of us will talk about what happens during the pre negotiation on the part of Pablo. Another one on the part of CSI. Remember that even if this things occurred before the negotiation proper, they are still part of the negotiation process) PABLO Naturally, Pablo would now feel better and more relaxed since CSI made him realize that they are committed to look into the matter - the problem, very seriously. In other words, from the point of view of Pablo, CSI ACKNOWLEDGES that, indeed, there exists a problem. This thought alone is CARSHOP, INC. (CSI) By setting up an appointment, CSI already took a step ahead. What we dont usually realize under the situation is that by doing so, CSI had already bought TIME and INFORMATION. CSI, being aware already of Pablo's position and his interests, they already know exactly what to expect in the meeting and can better prepare for it.

already very relieving because what we could usually expect under the circumstances is that an agent working for the company, more often than not, will come to the rescue of the latter and would not expose the company to any liability at all if given the chance. But the agent did exactly the opposite. The principle involved here is: MIXED SIGNAL. - Sending a message inconsistent with the other side's perceptions. Note however: Nowhere in the conversation did CSI promise to replace his engine. CSI did not say yes or no to his demands. Nevertheless, the CSI agent did a good job in converting his anger in the company into an opportunity of MUTUAL ATTACK ON THE PROBLEM. Of course, Pablo, by this time, must have realized that he cannot just go the meeting unprepared. Pablo anticipates that CSI will definitely have to check his engine if indeed it needs a brand new replacement or just a simple and minor repair. So, being bright as he is, he took his Land Cruiser to a repair shop and had it assessed already.

Note: It must be emphasized that during the time the agent was dealing with Pablo over the phone, they were not yet in the best time and position to deal with the matter directly as they would still necessarily have to study his records and their company's relevant policies.

While Pablo is busy having his land cruiser checked in preparation for the meeting, which would necessarily involve negotiations, CSI is also busy reviewing all the records and all the relevant company policies , more particularly, as to the enforcement of warranties. What must be emphasized clearly at this point is that, CSI did not set an appointment with Pablo because they are just simply a Good Samaritan. They may be playing the role of a Good Samaritan but they are definitely NOT a Good Samaritan. So what is the primordial interest of the CSI under the circumstances? Of course, it is none other than avoiding any liability as far as you can imagine. That is basic company policy.

In the case, Pablo was determined to sue the company if the latter does replace his engine. Take note, however, that this is not his main objective. Understandably, why spend for litigation if you can just simply succeed in having your engine replaced for free by the company?

Since it is the basic interest of any company existing on Earth today to protect itself from any pecuniary and related liabilities, CSI wasted no time in assessing their current standing from the point of view of the law vis-a-vis that of Pablo's. Upon consultation with the company's Corporate Legal Counsel Atty. Angelica

His motivation: Due to the peculiar circumstances of his situation, specifically, the extremely unusual and rare occurrence of a luxury SUV, bought just less than a year, would have to be subjected to a major repair, which costs as much as P250,000, he believes that he has a rightful standing in the law of equity and fairness. After all, he is convinced that no one, not even the CEO of CSI, would surely spend his five years of savings amounting to P2.5 Million to buy a luxury SUV only to have its engine replaced in less than a year.

Mateo, it was learned that Pablo had in fact no cause of action whatsoever against CSI. In the words of Lady lawyer: Pablo's redhibitory action and accion quanti minoris under Art. 1567 of the New Civil Code has prescribed pursuant to Art. 1571 of the same Code which states that "Actions arising from the provisions of the preceding ten articles shall be barred after six months from the delivery of the thing sold."

If he insists on demanding for the replacement of the engine on October 18, 2009, which is the date scheduled for the meeting and evaluation, and even if he will His thoughts precisely: if you still don't an action on the same date, it would be too see it as plain injustice on my part, late already as the SUV had been delivered then I do not know anymore what to him on November 29, 2008. Almost 11 justice is. months have lapsed already. The CSI General Manager was delighted upon hearing those words. In fact he already wanted to call and inform Pablo about the same. But Atty: Mateo advised the General Manager not to inform Pablo of the same. GEN. MANAGER and ATTY. MATEO Gen. Manager: Atty. Mateo: So What do we do now if he sues us? Nothing. His redhibitory actions under the law have already prescribed. The law provides that such actions must be brought within 6 months from delivery! Almost 11 months have passed already! He has no cause of action anymore! Gen. Manager: Atty. Mateo: Lol! Lawyers I used to hate lawyers until I met you Attorney. So should I inform him now? No. Not so fast. There's one more thing. He may sue us over implied warranty on the basis of RA 7394 otherwise known as the Consumer Act of the Philippines. Under that law, vehicles may be classified as consumer products and the action to enforce implied warranty prescribes in one year. Gen. Manager: Atty. Mateo How did you know that? Our present case is no different from a decided case. De Guzman

vs. Toyota Cubao. The only difference is, the car in that case was Toyota Hi Lux. Gen. Manager: Atty. Mateo: Gen. Manager: And how could you possibly know all these? Because I represented Toyota. And we won. Lol! Lawyers Hate 'em until you need one...

PABLO and THE CAR MECHANIC Pablo: Car Mechanic Pablo: Car Mechanic: Pablo: Car Mechanic: Pablo: Car Mechanic: Pablo: Car Mechanic: Pablo: Ano sa tingin mo ang problem tsip? May crack boss yung cylinder head nyo. Posibleng hindi mo namalayan overheat na ho kotse mo. Bakit ho na overheat? Naku posible hong nasira fan belt mo or may problema sa radiator mo. Eh wala pa naman isang taon yan ah! Paktori depek yan bossing. Basta pag ganun may sira, wala pa isang taon, Land Cruiser pa, syurbol bossing paktori depek yan! Eh kung papalitan lang kaya yung cylinder head? Haha! Asa ka boy. Bili ka na lang bagong makina tutal may pera ka naman. Hindi yan side mirror na pwede palitan bossing! Mga magkano naman kaya ang makina na yan? Kapag oorder ho kayo sa kasa ng bago, aba'y barya lang yan! 250 lang bossing! P250,000 hehehe. Anak ng!!!!!! Saan ko nanakawin yan?! Teka isama nga kita sa CSI na yan.

BATNA (For discussion purposes in class) Pablo - Batna: Sue CSI Pablo realizes that given the enormous amount involved in the replacement of engine. He expects stiff disapproval from the CSI. This is going to be tough. But he holds on to the fact that this is an extremely unusual case which do not normally happen to brand new cars. His situation is something that any owner of a brand new car would protest to the full extent of law and reason. What else could be the basis of my demand other than simple fair play. Fair play is CSI - No Batna. Law is on our side. Being fully aware of the standing of both parties from the vantage point of the law, CSI through its General Manager, has already made a decision even before the actual meeting. Besides, they have something to lose and nothing to gain if they decide to engage in a negotiation agreement with Pablo. For this reason, expect a different CSI during the negotiation. They will be engaging in talks but only for professionalism and good will purposes. At the end of the day, this is precisely the reason why we have laws. To

just all I am asking. If they cannot give me fair play then I will ask it from the courts of justice! I will sue them if they cannot give me the fair-dealing on the basis of which I have parted with my own money in all honesty and good faith! (Note: at this point he was not yet aware that he has no cause of action against CSI.)

put an end to controversies through the determination of rights and obligations. And on this note alone, there is really nothing that can compel them to submit to the demands of Pablo. Insofar as they are concerned, no engine replacement will ever happen. Not even a screw!

PART III (THE NEGOTIATION PROPER) On October 18, 2009, at about 9:30 in the morning, Pablo, together with Gary, the Car Mechanic, proceeded to the CSI showroom and were assisted by the sales agents towards the visitors lounge. While waiting for the general manager, they were served with brewed coffee and a glass of water. The room was cozy, sophisticated and filled with an aura of peace and serenity, thanks to the oriental bamboo instrumental music being played in the speakers at the ceiling. Then, the Gen. Manager Ms. Casipit, accompanied by her legal counsel, Atty. Mateo, entered the visitor's lounge. Ms. Casipit Pablo Ms. Casipit Oh, it's nice to see you back again again Mr. Pablo Magalona right? So what can I do for you Sir? Yes. It's nice to see you too I.. Oh yes you were the one who talked to our agent a couple of days ago. Lovely conversation you had there. Heard it all. (smiles) Would you to want to place a job order for the repair of your engine Mr. Pablo? Pablo Ms. Casipit Pablo Did your agent not inform you that I was requesting for an engine replacement? Oh yes she did so would you like to place an order now? You may have been misinformed Ms. Casipit. I am here to avail of the warranty since the engine of my Land Cruiser broke just less than a year since I bought it. I'm sorry, Mr. Pablo but we don't recall having made such express warranty. Ms. Casipit, even my mobile phone is covered by a 1 year warranty. My laptop is covered by a 1 year warranty. That's true but that's only because there was a document expressing such warranty Mr. Pablo So, If I understood you correctly Ms. Casipit, if there is no such document, then I will have to bear the loss on any thing even on account of its hidden defects?

Ms. Casipit Pablo Ms. Casipit Pablo

Ms. Casipit Pablo Ms. Casipit Pablo Ms. Casipit

I'm afraid that's true Mr. Pablo. That is company policy. Alright. Since as you insist that there must be an express warranty, don't you think there is also such a thing as an implied warranty? You have done your homework Mr. Pablo! You're correct but not quite. Because that is not without limitation. Meaning? You see you have six months from the date of delivery within which to enforce it. In your case, Mr. Pablo it's almost a year since you brought this up to our attention. So, what do you think is the reason behind the six months period provided by the law Ms. Casipit? I wouldn't really know Mr. Pablo. You see I'm not a lawyer, and until you decide to avail of our services for a fee, I'm afraid I really don't have the whole day for you Mr. Pablo. Alright Ms. Casipit. Just 11 months ago, you do realize how much I took out from my life savings and delivered it right before your cashier right? Yes. I vividly remember that Mr. Pablo And you do remember what my reaction was when you delivered the SUV to me? You do remember that very moment I saw the Land Cruiser right? Just so you know Ms. Casipit, I really didn't see a Land Cruiser at that time. What I actually saw was the fruit of my labor, my father's and my father's father.

Pablo Ms. Casipit

Pablo

Ms. Casipit Pablo

Ms. Casipit

I hope you do realize also that a company has certain inflexible policies Mr. Pablo. And even if we forget about the policies, I hope you do realize where the company stands from the point of view of the law Mr. Pablo?

Pablo

Yes. Yes. I do. But, uhmm, you see I really have a problem understanding how we people follow something without even caring to know the reason behind it. Dont you? What is your point? I am not really making a point Ms. Casipit. I just find it a little weird how you are adamant in choosing something you cannot see and deliberately close your eyes to the things that unfold right before you. Do you have anything more to say Mr. Pablo? (Preparing to exit) Yeah. One last thing. Which is?

Ms. Casipit Pablo

Ms. Casipit Pablo Ms. Casipit

Pablo

(gets up, reaches something from his pocket and prepares to exit but stops by the door) just in case you don't recognize my face. I am a regular column writer in the Philippine Star. You have until Friday Ms. Casipit. (Hands a calling card and exits) Casipit calls up Atty. Mateo Attorney, we have a situation. Mr. Pablo is a regular column writer in one of the top three major newspaper companies! And? He said that I have until Friday. That means he's writing something if we dont give in to his demands! So what's the matter? Let him write then. The law doesn't cease to be on our side just because he wrote something. You dont get it Attorney! Yeah, the law doesn't cease to protect us but public perception will! We have about 26 confirmed buyers of Land Cruisers for next week! Do the math attorney!

Ms.

Ms. Casipit Atty. Mateo Ms. Casipit Atty. Mateo Ms. Casipit

Atty. Mateo: What math are you talking about? Thats precisely why I took up law! Just calm down ok? Ms. Casipit I can't! See if half of the 26 confirmed buyers read his article and half of those who read decided to changed their minds, just imagine the impact on us! The cheapest Land Cruiser now is 3 Milllion. You multiply that by, say 6 that's 18 Million Attorney. And that's just for next week only. You must do something!!! We only 2 more days and he gave me his calling card!!! Atty. Mateo: Ugh! Right! We cannot sue him for libel or anything he hasn't written anything yet! We can not also ask for a TRO. No TRO can stop the constitutional right of a journalist to write something. Ms. Casipit I'm fainting.

Atty. Mateo: But wait! What we can probably do at this point is to buy some time! Obviously we cannot just give in to his demand just like that. That's precisely why we must NOT negotiate with him bilaterally. Ms. Casipit Exactly. And we must understand, he's upset NOT so much because his engine cannot be repaired. Rather, he's upset because he feels that he's UNFAIRLY TREATED. What does this tell us? Attorney, he is not really after the expenses for the repair or replacement of his engine.

This is about a man who wants to point out and rectify a wrong. In fact, that is his calling. That is his bread and butter. Therefore, we must eliminate the idea that he's merely bluffing. Atty. Mateo Yeah he's not. This is precisely why we have laws. To put an end to controversies. Tsk! Now, these laws are useless. If you propose to negotiate, He will do just exactly what you did to him. So the only logical solution here is to open his mind. We must make him realize that agreeing 100% to his terms is also unfair on our part. If he does not believe so, then he's a hypocrite for invoking fairness. He certainly wouldn't want people to remember him that way.
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*brief discussion in class before proceeding to the last part*

PART IV (ONE-TEXT PROCEDURE - MEDIATION) <---- LAST PART