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1. Which of the following reflects a correct legal precept? a. Private corporations under the Corporation Code are created by law. b. A private corporation may always be held civilly liable for negligent acts committed by its employees. c. The corporate obligations are, as a rule, not the obligations of the corporate officers as long as the absence of liability of the latter is reflected in the corporate by laws. d. Private corporations under the Corporation Code may either be de facto or de jure. 2. Which of the following is in conformity with both law and jurisprudence? a. The separate personality of a corporation may be disregarded when an incorporator dominates and controls the outstanding capital stock. b. Shareholders cannot maintain a suit in their own names to recover corporate property. c. A corporation does not fall within the constitutional protection against unreasonable searches and seizures. d. A corporation has a right against self-incrimination. 3. Ten persons, all Filipinos, and acting as incorporators, filed an application for the incorporation of XYZ Bank, Inc. Which of the following is correct? a. The incorporators are not disqualified by reason of their nationality. b. XYZ Bank, Inc. may issue no-par value shares as long as the consideration thereof is not less than P5.00. c. The incorporators must all be Philippine residents. d. None of the above. 4. When the articles of incorporation provide for non-voting shares, the holders of such shares shall nevertheless be entitled to vote on the following matters, except: a. Dissolution of the corporation. b. Sale, lease, exchange, mortgage, pledge or other disposition of all or substantially all of corporate property. Amendment of the articles of incorporation. c. Incurring, creating, increasing or assignment of bonded indebtedness. 5. ABC Corporation, a private corporation engaged in the business of importing used cars from Japan was issued a certificate of incorporation by virtue of R.A. 27890. Because of a failed business transaction, ABC Corporation sued Mr. X for a damage arising from the latter’s alleged breach of its contractual obligations. a. Mr. X cannot allege “lack of legal capacity to sue’ of ABC Corporation in its motion to dismiss because it has a legal personality conferred by law. b. Mr. X cannot allege “lack of legal capacity” in its motion to dismiss because it is not allowed to attack the existence of the corporation collaterally. c. ABC Corporation is a de jure corporation and its existence can be attacked only through a quo warranto proceeding. d. Attacking the existence of ABC Corporation may be done through a motion to dismiss because its creation is void. 6. No 1 - Within five (5) years from issuance of its certificate of incorporation, the newlyformed corporation must formally organize and commence business operations. Failure to do so within such period is a ground for dissolution. No. 2 - Every member of the
Which of the following is correct? a. A corporation was formed by fifteen (15) incorporators and its certificate of incorporation was duly issued. not exceeding twenty (20). Acts of directors or trustees who are guilty of gross negligence or bad faith in directing the affairs of the corporation. The corporation is a corporation by estoppel because although it operates as a corporation. c. providing for the following (i) That all of the corporation’s issued stock of all classes. c. d. it did not comply with certain legal requirements for the establishment of a close corporation. 7. the stockholders. The corporation is a close corporation because the resolution contains the elements of a close corporation. a. c. The second statement is true. 10. The corporation is an open corporation. d. a. To all issues of shares or dispositions of shares of any class. b. stock. 9. shall be held of record by not more than a specified number of persons. The members of the board are liable whenever they vote for unlawful acts. b. d. He must be also a member of the board. the quorum in a board meeting is eight (8). A director may be removed by the vote of all the stockholders in any meeting. who are themselves the members of the board adopted a resolution. A year after its attainment of juridical personality. If there are only ten (1) directors elected although the articles of incorporation provide for fifteen (15) directors. d. Acts of directors constituting an approval of patently unlawful acts. b. b. c. the second is false. a. The pre-emptive right extends to the right to subscribe. Acquisition of a business opportunity which should belong to the corporation. The secretary of a corporation must be a citizen of the Philippines and a resident of the Philippines. Only to the issuance of previously unissued portions of the outstanding capital stock. The corporation is de facto because although it has a certificate of incorporation. The first statement is true. To all issues or dispositions of shares of any class other than redeemable or treasury shares. thereby acquiring profits which should belong to the corporation. the first is false. Only to new issues of shares arising out of an increase of the capital . exclusive of treasury shares. Which of the following acts could be ratified by a vote representing at least 2/3 of the outstanding capital stock? a.board of every corporation must own at least one (1) share of stock standing in his name in the books of the corporation. the provisions in the resolution should have been contained n the articles. An attempt by a director to acquire or actual acquisition of any interest adverse to that of the corporation in respect of any matter reposed upon him in confidence. b. c. 8. Both statements are true. (ii) That all of the issued stock of the corporation shall be subject to certain specified restrictions. Both statements are false. and (iii) That the corporation shall not list in any stock exchange or make any public offering of any of its stocks of any class.
2 – A foreign corporation engaged in business in the Philippines may sue and be sued n the Philippines. Which of the following is correct? a. No. A bid of P40. An indorsement is restrictive if: a. c. The corporation must have unrestricted earnings in its books to cover the purchase of shares.000 for 500 shares. All dividends are taxable as income of the stockholder. Both statements are true. No. X subscribed to 1. b. d. including the balance. c. c. 1 is true. The following are the requisites for the corporate power to acquire its own shares. it is indorsed to Jose or bearer. The total liability of X.000 for 504 shares. b. it is indorsed to Jose. no. Which is the exception? a. 16. Which of the following is not a negotiation of a negotiable instrument? a. accrued interest. d.000 for 300 shares. b. No. The corporation must have unrestricted earnings in its books to cover the purchase of the shares except in the case of redeemable shares. No. 2 is false.000 for 900 shares. indorsement and delivery of an instrument payable to the order of Jose. . a. Both statements are true. No. no. No. 2 – A transfer of shares to a non-stockholder is binding to the corporation as long as the transfer is in a public document. No. 2 is false. The acquisition must be for a legitimate purpose. costs and other expenses amounted to P50. Delivery to the payee of an instrument payable to bearer. 14. Both statements are false. Delivery to the payee of an instrument payable to bearer Jose. The acquisition must be for the sole purpose of acquiring shares in order to eliminate fractional shares. No.000. it is indorsed to Jose in trust for my child. b. d. Dividends may be declared out of a reappraisal surplus or revaluation increment because they constitute profits. d. 1 is false. A bid of P50. 2 is true. 1 – A foreign corporation intending to sue in Philippine courts must always have a license to engage in business n the Philippines. A bid of P43. No 1 is true. c. 1 is false. Dividends are profits but not all profits are dividends. d. Both statements are false.11. c. b. 12. Delivery of an instrument payable to the order of Superman. 15. Which bidder is considered the highest bidder in the delinquency sale? a.000 shares of stock in ABC He paid 50% of the subscription but such subscription was later on declared delinquent. 2 is true. a. d. b. c. No. A bid of P45. 1 – Holders of delinquent shares are not entitled to dividends. 17. The declaration of any kind of dividend requires the assent of at least 2/3 of the outstanding capital stock. c. 13. b.
a. X wants to lend money to third persons but asks his friend. b. B receives no consideration for lending his name. c. but X is. Through illegal means. X is a party accommodated. it is payable to cash. Pay to the order of P P50. F gets hold of the check. I promise to pay O or bearer P50. To D. B can collect from X. b. 19. If B cannot collect from the maker because of forgery of the latter’s signature.000. d. 21. a. I promise to pay Pedro Santos P50. 23. it is payable to the order of the King of the Philippine Islands.Which is correct? a. it is payable as in all of the above. All of the above. P can still collect from Drawer. X indorses a note sans recourse and delivers it to B. B is an accommodation party. d. c. 22. b. A may negotiate to B by indorsement completed by delivery. and deposits it in his account in M Bank which indorses the check for clearing with the words” All prior indorsements guaranteed”. B is not an accommodation party.000 out of my money in your hands. As payee. DR. c. D issues a note payable to the order of P. B cannot collect from X.000 and such other sums he may be entitled to. 24. B is not a party to the note. it is payable to the order of cash. O Bank is liable to Drawer for reimbursement of the amount deducted from the account of Drawer. d. I promise to pay P or his order P30. c. P indorses the note thus: “To A. indorses the check to himself by forging P’s signature. If B cannot collect from the maker because of forgery of the latter’s signature.000 with interest. d. c. Pay to X or his order P50. If B cannot collect from the maker. B can collect from X after giving him a notice of dishonor. Pay to the order of P P50. 18. d. B to sign promissory notes of the borrowers as the lender/ payee. If B cannot collect from the maker.000 and deliver 10 sacks of rice.000 b. A may negotiate to B by delivery alone. d. M Bank is liable to O Bank as an indorser. a. It is indorsed to the order of Jose.d. 20. non-negotiable? a. The instrument is payable to bearer if a. I promise to pay to the order of P P50. Sgd P”. Drawer issues a check to the order of P drawn against O Bank. None of the above is conditional. Sgd. B indorses the notes to X. b. A cannot negotiate the note any further. The following instrument is negotiable assuming all other requisites are present: a. b. B can never collect from X. To D. Which among the following has a conditional promise hence. A is an assignee. c. c. b. . Sgd DR.000 on the day his father passes away. d.
30. Which stipulation is not void? a. 1 is false. 28. d. There is no exception.00 only per luggage except if the shipper or passenger declares a higher value. b. c. d. No. d. Both are false. Which is the exception? a. when there is collision. The common carrier’s duty to observe extraordinary diligence in the vigilance over the goods. No. It is possible for a customs broker to be a common carrier if it transports goods for a fee. No. b. d. a. 2 is false. b. Travel agencies as such are common carriers. The doctrine of last clear chance in case of collisions. 31. Contributory negligence of the plaintiff. d. It was established that the ship was unseaworthy but would have successfully completed the voyage had it not been for the typhoon. The doctrine of inscrutable fault applies a. begins upon the execution of a bill of lading. None of the above. That the shipper will be liable for P500. 2 is true. Common carriers are required to cater to every member of the public. b. No. Which of the following statements is not legally true? a. c. a. If there are liabilities under the Workmen’s Compensation Law. To be a common carrier. ends when the goods are lost in transit. c. If there are expenses incurred when the vessel was repaired before its loss. c.00 per baggage. b. 2 The indorser warrants that the instrument is genuine only n certain cases. b. No one is liable. when there is no evidence as to which vessel is negligent. All forms of fortuitous events.25. 1 is true. b. whenever a collision occurs. c. The ship owner may invoke fortuitous event as a defense. ends when the shipper has availed of his right of stoppage in transitu. The ship agent may not be held liable because he is acting for a disclosed principal. ends when they are temporarily unloaded in transit. a. 27. c. Which could be availed of as a complete defense by a common carrier? a. . The vessel is insured. 29. Both are true. d. 26. No. That the shipper will be liable only for P500. when a vessel makes a wrong maneuver in the second zone of collision. an entity must have a certificate of public convenience. A commercial vessel was sunk when it was overtaken by a typhoon in the ocean. d. The doctrine of limited liability may not be availed of as a defense in the following cases. c. b. No. 1 – The maker engages to pay according to the tenor of his acceptance. 32. The ship agent may be held liable in case the ship owner is not found.
there is only a duty to observe ordinary diligence. The insured shall have the right to change his beneficiary as a rule. Recovery cannot be had because of material misrepresentation. At the same time D arrived in the warehouse claiming the cement and presenting the warehouse receipt. No. Both are false. Terrorists cannot be insured because they are public enemies. none of the above. The insurer may legally refuse to pay. No. 35. Y can recover because he is the owner. W should . X can recover from the policy because there was no change in the policy. Two years after the policy became effective. The latter issued a negotiable warehouse receipt to D. Confronted with conflicting claims of ownership. Recovery can be had. d. except a. Recovery may be had under the policy because the ailment concealed was not the cause of death. d. No. 37. All are void. 34. Which is false? a. Both are true. b. a. 2 is true. No. 38. d. D deposited 500 bags of cement in the warehouse of W. . the duty of extraordinary diligence of the carrier continues for a limited period. No. c. c. if the insurer waives the premium in the meantime. c. b. No. a. 2 is false. d.00 per baggage whatever be the value declared.A contract of suretyship can never be an insurance contract. The shipper will be liable only for P500. If a loss occurs. X can recover because he is the one who is paying the premiums. 33. X insured his house against fire. O came to the warehouse to claim the goods alleging that the cement deposited by D were merely stolen by the latter. 39. a. if the insured deposits a check. a. the duty of extraordinary diligence may be lessened by stipulation. When a passenger is carried gratuitously by a common carrier. 2 . b. X died of a liver ailment. d. The insurer is entitled to the payment of premiums as soon as the thing insured is exposed to the peril insured against. During the effectivity of the insurance. Five months after. X answered “NO”. 36. 1 . In answer to a question in the insurance application on whether or not he had suffered from a heart ailment. 1 is true. a. c. b. he sold the house to Y without a corresponding change in the policy but X continued to pay the premiums. Recovery cannot be had because of a material concealment.When there is double insurance. there is always over insurance. b. d. 1 is false. b.c. c. d. A wife has an insurable interest in the life of her creditor. deliver the cement to O because he is the owner. c. the duty of extraordinary diligence of the carrier ceases. if there is an agreement to the contrary. The interest of a beneficiary continues even if his negligence caused the death of the insured.
The mortgage is binding even to third persons because it is in a public instrument. 2 is false. Which among the following is not a function of the Bangko Sentral ng Pilipinas? a. The deed of mortgage which is embodied in a public instrument is denominated as a chattel mortgage. 1 is true. a. no. 2 . a. He goes to Baguio City. 40. d. c. 1 .The Ombudsman may inquire into the bank deposit of a public officer whose case is pending criminal investigation in the Ombudsman even if there is no actual case filed in court. 2 is false . Universal bank. B cannot foreclose the mortgage. d. No. b. c. d. orally or in writing. d. 41. buys vegetable in bulk and after filing up his truck. d. c. deliver the cement to D because he is the holder of the warehouse receipt. Both are false. a. a. deliver the cement to D because he is the depositor. b. b. 45. Commercial bank. a. As official depositary of the Philippine government. c. receiving deposits. No. B can foreclose the mortgage. d. As fiscal agent of the Philippine government. If the debt is not paid. V is a vegetable buyer. he travels to Divisoria and sells all the contents of his truck. discounting and negotiating promissory notes. 1 is true. c. no. M mortgaged his concrete house located in a rented lot to B. No. 43. 2 – A deposit in a bank in foreign currency may be inquired into provided the depositor gives his consent. No. b. The mortgage is totally void because the house is a real property. It is a bank which creates or accepts demand deposits subject to withdrawal by checks and primarily organized to carry on the business of accepting drafts and issuing letters of credit. d. As the watchdog of government funds.A writ of garnishment directed to a bank deposit is prohibited by law. No.b. 2 is true. b. 44. V does not have to perform any of the above because his sale is in the ordinary course of business. 1 is true. c. No. If the debt is not paid. No. c. Both are true. b. No. 42. 1 – A bank may be may lend to a single borrower more than fifteen (15%) of the bank’s unimpaired capital. Both are true. Both are false. V does not have to perform any of the above acts if his business is not registered. V must prepare an affidavit listing his creditors. No. V must notify his creditors before selling all the contents of the truck. 1 is false. Thrift bank. buying and selling foreign exchange and gold and silver bullion and lending money against the borrower’s security in property. No. the amount of their credits and their due dates. compel the claimants to interplead so the court could decide who has the right to the goods. 2 is false. Rural bank. As financial adviser of the Philippine government.
X may be sued for estafa. 47. opened and maintained the following accounts with Allied Bank Recto. c. b. a. one to be affixed by him at the time it is issued and the second or counter-signature.000. Mendoza did not pay the corresponding freight charges. c. However. c. his wife his mother his mistress his daughter 52. They also have the same deposits with the same amount in Allied Bank Makati. Mendoza claims P 50. An instrument is rendered non-negotiable if. One of the following has no insurable interest in the life of Alberto: a. X is only civilly liable to the bank. not valid as it is contrary to public policy. otherwise it is incomplete. X got hold of the gods and sold the same but failed to remit to the bank the proceeds of the sale corresponding to his balance. to be affixed by him before it is paid. b. X may be deprived of his import license .00 on the ground that the airline ticket stipulates that unless a higher value is declared. not valid as it is not in accordance with law. executed a trust receipt agreement with the bank.00 for each baggage. (c) Time deposit P350. d. The corporate opportunity theory. d. Mendoza sues the airline company.000. 50. six deposits. Jose and his wife. 49. The distribution of dividends from capital and the acquisition of corporate shares without corporate unrestricted retained earnings is not allowed by law because of: a.000. b. The refusal of the airline company to pay the claim is: a. X imports goods from Japan through a letter of credit issued by National Bank.000. (a) Savings deposit – P300. d. X had no money to pay for the balance of the importation. Mendoza has not declared a greater value. If Allied bank becomes insolvent the Philippine Deposit Insurance Corporation will be bound to be liable to the spouses for its insurance liability equivalent to a. None of the above. Mr. two deposits. certified check stale check traveller’s check answer not given 51. one deposit. 48. d. c. A check upon which the holder’s signature must appear twice. b. Perla. b. d. is called: a. PAL is willing to pay only P 4. Mendoza did not pay any freight. any claim for loss cannot exceed P 2. c. (b) Demand deposit – P400. valid because Mr. He therefore. Mr. The trust fund doctrine. When the goods arrived in Manila. d. despite the fact that the clerk had called his attention to the stipulation in the ticket. three deposits.000.46. valid because no declaration had been made on the actual value of the baggage and Mr.000. b. The corporate entity doctrine. .00 for the loss of both of his suitcases during his flight from Manila to Davao via Philippine Air Lines. X may be sued for theft by the bank. c.
This is not negotiation of a negotiable instrument. Where the articles of incorporation so provides. The following shall produce the effect of payment of debts: a. Salvage Law . Assignment Delivery of a bearer instrument Indorsement completed by delivery of an instrument payable to order Delivery of an instrument to the payee 58. d. Stocks issued for a consideration more than its par or issued value. None of the above 56. None of the above 59. c. c. c. Exercised by the Board of Directors but not ratified by the stockholders. b. Stocks issued for a consideration less than P10. c. c. c. The Civil Code of the Philippines b. d. b. there is an indication of a particular account to be debited with the amount. When no payment is made within one (1) month from date as fixed in the contract or call. Contracts for water transportation from foreign ports to Philippine ports are primarily governed by: a. d. When no payment is made within fifteen (15) days from the date as fixed in the subscription contract or in the call made by the Board of Directors. b. Where the shareholder does not pay fifty percent of the value of the shares to be subscribed. d. d. None of the above 54. Stocks issued for a consideration less than its par or issued value. Ultra vires acts are acts of a corporation which are: a. Where a stockholder is delinquent in the payment of unpaid balance of his subscription. When can a corporation deny pre-emptive right to stockholders? a. b. c. there is an indication of a particular fund out of which reimbursement is to be made. When no payment is made within two (2) months as fixed in the contract or call. Necessary and incidental to the exercise of the powers conferred upon the corporation. The Code of Commerce c. b. b. 53. answer not given. b. When does a stock become delinquent? a. d. None of the above. 57. d. Delivery of check Tender of Central Bank notes Delivery of promissory note answer not given What are watered stocks? a. Not within the corporate powers conferred by the Code or articles of incorporation. a. 55.a. the instrument is payable out of a particular fund.
b. The corporation’s exercise of corporate powers is not recognized by the courts for reason of public policy. whether or not. The claim should be made within three (3) days from receipt when the damage or average could be ascertained from the outside.d. b. The claim should be made within twenty four (24) hours from receipt when the damage or average could be ascertained from the outside. Because it failed to incorporate under existing statutory authority. 61. d. The same as subscribed capital stock. Which one of the following is not a characteristic of a voting trust agreement? a. d. The corporation may acquire and dispose of properties. c. Why is a de facto corporation not considered a de jure corporation? a. The same as authorized capital stock. d. b. The corporation has a nationality or citizenship. 65. d. 63. c. must be a natural person and must own or subscribe to at least one share of stock. “outstanding capital stock” means: a. The stockholder remains the beneficial or equitable owner of the shares while the trustee is the legal owner. a. b. The corporation may sue but it cannot be sued. b. 62. d. Corporators are those who compose a corporation and is a term which includes stockholders. . as long as there is a binding subscription agreement. Every incorporator must be residents of the Philippines. As used in the Corporation Code. Which is not a consequence of the corporation’s separate personality? a. The total shares issued to subscribed or stock holders. A voting trust is irrevocable during the time stipulated. Which of the following conforms with the requirements of the Corporation Code? a. d. Its corporate existence may be challenged in court by any taxpayer. c. Carriage of Goods by Sea Act 60. if it is a life insurance policy within 2 years from its inception or last reinstatement on the ground of concealment or misrepresentation if all the above is present 66. members and incorporators. The corporation may enter into contracts with another corporation. claim has to be made for the damage sustained by goods. except treasury shares. It represents the paid up capital stock. b. A voting trust is created for the purpose of conferring upon the trustee the right to vote and other rights pertaining to the shares. All voting trust agreements shall not exceed five (5) years. Public Service Act e. Under the provisions of the Carriage of Goods by Sea Act. c. c. b. The claim should be made upon receipt when the damage or average could be ascertained from the outside. A policy of insurance is contestable: a. fully or partially paid. c. 64. None of the above. The claim should be made within twenty four (24) hours from receipt when the damage or average could be ascertained only upon opening the package.
b. When there is payment of dividends without unrestricted retained earnings. d. the right does not extend to certain specified issuances enumerated below. b. d. Shares to be issued to incorporators. except in case of. except: a. the Trust Fund Doctrine is violated. b. c. 72. The pre-emptive right if not denied by the corporation generally extends to all issues of shares in proportion to a stockholder’s shareholdings. These requirements is a consequence of the. The theory of separate personality. When the corporation allows the issuance of watered stocks. a. except: a. a. The following are remedies available to a corporation to enforce payment of stocks except: . 68. In the following cases. d. c. The doctrine of limited capacity. Which of the following are prohibited considerations for the issuance of stocks? a. c. b. None of the above. b. Shares to be issued in good faith with the approval of the stockholders representing 2/3 of the outstanding capital stock in exchange for property needed for corporate purposes. c. The law also requires that shares should not be issued below its par or issued value. Which is the exception? a. Even if not denied. President Vice-President Treasurer Secretary 71. d. b. cash dividends property dividends stock dividends script dividends 70. whose names are mentioned in the articles of incorporation majority of whom have signed the said articles. c. Incorporators are those who originally compose the corporation. The trust fund doctrine. The Board of Directors alone may declare the following type of dividends. When the corporation releases or condones payment of the unpaid subscription. The acquisition of shares and the declaration of cash dividends require that the corporation has unrestricted retained earnings. 67. Shares to be issued in compliance with laws requiring stock offerings to the public. 69. d.c. The following are the corporate officers of a corporation. goodwill past services accounts receivables None of the above 73. Shares to be issued in payment of a previously contracted debt. d. c. The doctrine of general capacity. d. An incorporator in a domestic corporation may be an alien and a nonresident.
c. unilateral contracts 79. To deny pre-emptive right. spouse 78. To increase or decrease capital stock. mining corporation stock exchange educational institution All of the above 76. the policy remains compensable. The cause or consideration in insurance contracts is: a. c. Mandamus Extra-judicial sale Withholding of stock dividends Deduction from cash dividends In the following instances. Which of the following cannot be a close corporation? a. Reduction of term. Extension of term Appointment of an executive committee. A person has an insurable interest on the life of his: a. contracts of adhesion c. telling lies 81. d. b. grandfather c. the value of the thing to be insured c. except: a. appraisal right may be exercised. amend or repeal the by-laws. d. All provisions and stipulations in insurance contracts are prepared by the Insurer. the desire of the assured b. unlimited 82. 75. The extent of insurable interest in non-life insurance depends on: a. the proceeds c. the premium b. c. Concealment in insurance is: a. pro-forma contracts b. approval of the majority of the board and concurrence of the stockholders representing 2/3 of the outstanding capital stock is necessary in the exercise of the powers except: a. b. c. To adopt. hiding the truth b. Investment of corporate funds in another business or purpose. gratuitous 80. b. friend b. .a. thus they are: a. d. In the following instances. 74. failure to communicate c. b. d. 77. To declare stock dividends. If a thing insured under a fire insurance policy is lost or destroyed by some other means other than fire.
equipment and freight during the voyage. To be compensable. It is a written statement by the master of vessel. Error in Extremis Rule Doctrine of Declared Limitation in Maritime Law Real Nature of Maritime Law Doctrine of Presumed Negligence of Common Carriers 89. 87. is limited to the vessel. b. This established rule provides that the liability of the ship owner or agent. e. b. if lost or destroyed because of an earthquake 83. b. a. c. by a hostile fire by a friendly fire by voluntary scorching 86. A life insurance policy could no longer be questioned after two (2) years that the policy had been in force counted from: a. A public enemy who cannot be the object of a life insurance contract is one: a. who is a fugitive and has a prize on his head an American or Canadian a citizen of a country with whom the Philippines is at war. This doctrine is a recognition by the courts that the fiduciary standards could not be upheld where the fiduciary is acting for two entities with competing interests. attested by a proper judicial officer or a notary. to the effect that damage suffered by the ship or her voyage was caused by storms or other perils of the sea. c. at the tine of the loss at the inception of the contract of insurance. d. at the inception of the contract and at the time of the loss. c. if the loss or destruction was a consequence of the effort to save the thing insured from being burned. It rests on fundamentally on the unfairness of a corporate officer or director taking advantage of a prospect for his own personal benefit when the interest of the corporation justly needs protection. c. c. a. arising from the operation of a ship.a. a. Insurable interest on the thing insured and insurance interest on the policy in property insurance or non-life insurance must be reposed on one and the same person: a. Master’s Certificate Bill of Lading Affidavit of Desistance Maritime Protest Maritime Complaint 88. 84. b. b. d. c. b. if lost or destroyed because of volcanic lava c. Corporate Entity Doctrine Corporate Interest Doctrine Business Judgment Rule . c. the inception of the policy the last reinstatement at the inception of the policy or from its last reinstatement 85. b. b. without any negligence or misconduct on his part. the thing insured under a fire insurance policy must be lost or destroyed: a.
and produces a new and useful result. b. a. d. c. It applied for the issuance of letters patent. the convenience of having two gadgets in one. . Lucky Me registered its trademark. a. including its remedies or securities. so that he who is substituted succeeds to the rights of the other in relation to a debt or claim. e. d. b. or if it can be foreseen. The obligor must be free from any participation in the aggravation of the injury resulting to the creditor. “Ang Sarap Pancit Palabok” with the Intellectual Property Office. Insolvency Proceedings Suspension of Payments Corporate Rehabilitation Voluntary Insolvency 91. must be independent of human will. a. gas. It must be impossible to foresee the event which constitutes the case fortuito. As applied in Transportation Laws. It is a legal scheme whereby a debtor. 93. may petition for more time within which to settle such obligations. a. Corporate Opportunity Doctrine. c. 90. It is a business or service engaged in regularly supplying the public with some commodity or service of public consequence such as electricity. c. water. who has sufficient assets but who may be unable to meet his obligations as and when they fall due. c. transportation. namely. or the failure of the debtor to comply with his obligations. The debtor was blameless The occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner. d. 95. The invention is patentable because it is a new product which is beneficial to the public. The invention is patentable because it combines existing elements. c. Assignment of Rights Substitution of Creditors Subrogation 94. Lucky Me sued for trademark infringement. it must be impossible to avoid. b. hence not capable of exclusive appropriation. telephone or telegraph service. a cellular phone and a digital music player. which of the following is a not an element of a fortuitous event? a. Nissin subsequently introduced its new product. b. b. “Ang Sarap Pinoy Ramen”. The cause of the unforeseen and unexpected occurrence. It is the substitution of one person in the place of another with reference to lawful claim or right. Nissin is not guilty of trademark infringement because the trademark “Ang Sarap” is descriptive. The invention is not patentable because it is a combination of old functions which does not produce a new result.d. Samsung invented a cellular phone that can also play digital music or MP3s. The invention is not patentable because Samsung is a foreign corporation and it should file its application in its home country. a. Public Service Public Corporation Public Utility Commodities Trader 92. d.
belongs to a different category from Lucky Me’s product. Nissin is guilty of trademark infringement because it did not register its trademark “Ang Sarap Pinoy Ramen”. which handles deposit of funds from its members and lends the same funds to the general public. hence capable of exclusive appropriation. c. The Library. No. payable in twenty-four (24) monthly installments. It is composed of at least 100 natural persons. each of whom has deposited some amount of money into the Foundation. b. Thereafter. c. The copy of the Journal is marked “For Room Use Only” and is therefore not made available to the public outside of the Library. reproduced one copy of the Journal for lending to the University’s students for room use. The chattel mortgage is extinguished because the SCM is stopped in not foreclosing the mortgage after Allan is in default in two installments. Yes. Allan sold the car to Magtanggol. Pancit Palabok. It is a rule that determines the nationality of a corporation on the basis of the place where the foreign corporation is incorporated or registered? It is a rule that determines the nationality of a corporation on the basis of the nationality of the majority of the stockholders. Yes. Law Library liable for copyright infringement. The Bangko Sentral has the full discretion and expertise to grant authorities to register as banking institution. The chattel mortgage is not extinguished because the mortgagee’s right to foreclose the same is in rem. d. Hence. b. The reproduction is consistent with fair use. 100. The word “Philippines” as part of a corporate name is reserved for government owned or controlled corporations.E. c. College of Law. It qualifies as a bank because its funds are obtained from more than 20 persons. The chattel mortgage is not extinguished as it is an accessory contract. Nissin is not guilty of trademark infringement because its product. Yes. Only stock corporations can be organized as a bank. c. No. It applied with the Bangko Sentral for authority to organize itself into a bank. No. c. Allan purchased 2005 Civic V-tech from Honda Cars Manila (HCM) for P950. 99.000. in order to preserve the original book. Allan failed to pay four (4) installments. d. b. Pinoy Ramen. d. HCM can still foreclose the same. e.E. The Credit Foundation of the Philippines is a non-stock corporation. d. What is the so-called “Grandfather Rule” under the Corporation Code? a. d.b. a purchaser in good faith and for value. a. All of the above None of the above The following are the outstanding characteristics of an insurance contract EXCEPT: . Center Book Store is the publisher of the book Legal Journal. 98. The law only allows a library to photocopy a book if it is fragile or rare. May the Foundation be granted the said authority? a. Only the National Library is allowed to reproduce books and other works. 96. Yes. It donated one copy to the Library of the U. Allan executed a promissory note and a chattel mortgage to secure payment thereof. Is the U. It is a rule that determines the nationality of the corporation on the basis of the nationality of its officers and directors. b. 97. Nissin is guilty of trademark infringement because the trademark “Ang Sarap” is fanciful and arbitrary. What would be the effect of the sale on the chattel mortgage contract? a. The chattel mortgage is extinguished as Magtanggol is a purchaser in good faith and for the value. No.
It is a contract of indemnity It is a risk distributing device All of the above None of the above . e. d. b. It is an aleatory contract.a. c.
A 80. D 73. D 75. B 3. D 95. C 56. B 23. D 61. D 35. B 12. A 8. C 87. D 72. C 57.ANSWER KEY IN COMMERCIAL LAW 1. D 2. B 17. C 92. A 46. C 85. D 36. D 43. A 39. E . D 10. B 33. D 24. D 62. D 5. D 25. C 53. B 15. C 68. A 74. A 84. C 21. C 11. C 65. B 77. C 30. D 40. D 28. D 96. D 98. D 38. A 58. C 14. C 70. D 42. B 64. B 31. D 4. D 50. B 100. B 66. C 94. C 18. A 48. C 97. A 7. B 71. D 32. D 29. C 20. C 52. C 51. D 27. B 13. A 16. C 34. C 78. C 89. D 76. D 63. A 60. A 44. A 86. B 99. D 90. C 47. B 26. B 49. D 37. D 41. D 22. B 79. D 6. C 9. B 55. B 54. B 82. B 91. D 67. C 93. C 69. D 88. B 59. B 81. A 83. D 45. D 19.
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