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2011 Bar Examination Questionnaire for Labor Law

(1) The unions by-laws provided for burial assistance to the family of a member who dies. When Carlos, a member, died, the union denied his wife's claim for burial assistance, compelling her to hire a lawyer to pursue the claim. Assuming the wife wins the case, may she also claim attorney's fees? (A) No, since the legal services rendered has no connection to CBA negotiation. (B) Yes, since the union should have provided her the assistance of a lawyer. (C) No, since burial assistance is not the equivalent of wages. (D) Yes, since award of attorney's fee is not limited to cases of withholding of wages. (2) Pol requested Obet, a union officer and concurrently chairman of the company's Labor-Management Council, to appeal to the company for a recomputation of Pols overtime pay. After 5 p.m., his usual knock-off time, Obet spent two hours at the Personnel Office, reconciling the differing computations of Pols overtime. Are those two hours compensable? (A) Yes, because Obet performed work within the company premises. (B) No, since Obets action has nothing to do with his regular work assignment. (C) No, because the matter could have been resolved in the labor-management council of which he is the chairman. (D) Yes, because the time he spent on grievance meetings is considered hoursworked. (3) The Labor Code on retirement pay expands the term one-half () month salary because it means (A) 15 days' pay plus 1/12th of the 13th month pay and 1/12th of the cash value of service incentive leave. (B) 15 days' pay plus 1/12th of the 13th month pay and the cash equivalent of five days service incentive leave. (C) 15 days pay plus a full 13th month pay. (D) 15 calendar days' pay per year of service plus allowances received during the retirement year. (4) A foreign guest in a luxury hotel complained that he lost certain valuable items in his hotel room. An investigation by the hotel pointed to two roomboys as the most probable thieves. May the management invoke loss of confidence as a just cause for dismissing the roomboys? (A) No, loss of confidence as reason for dismissal does not apply to rank and file employees. (B) No, loss of confidence applies only to confidential positions. (C) Yes, loss of confidence is broad enough to cover all dishonest acts of employee. (D) RIGHT ANSWER Yes, loss of confidence applies to employees who are charged with the care and custody of the employer's property. (5) Tower Placement Agency supplies manpower to Lucas Candy Factory to do work usually necessary for work done at its factory. After working there for more than two years under the factory managers supervision, the workers demanded that Lucas extend to

them the same employment benefits that their directly hired workers enjoyed. Is their demand valid? (A) Yes, since it was Lucas that actually hired and supervised them to work at itsfactory. (B) No, since the agency workers are not employees of the client factory. (C) Yes, since they have been working at the factory in excess of two years. (D) No, since it was the placement agency that got them their jobs. (6) Both apprenticeship and learnership are government programs to provide practical on-the-job training to new workers. How do they differ with respect to period of training?. (A) In highly technical industries, apprenticeship can exceed 6 months; learnership can exceed one year. (B) Apprenticeship cannot exceed 6 months; learnership can. (C) Apprenticeship shall not exceed six months; while learnership shall not exceed three months. (D) The law lets the employer and the apprentice agree on the apprenticeship period; but the law fixes learnership period at six months in non-technical industries. (7) Venus Department Store decided to contract out the security services that its 10 direct-hired full-time security guards provided. The company paid the men separation pay. With this move, the Store was able to cut costs and secure efficient outside professional security services. But the terminated security guards complained of illegal dismissal, claiming that regular jobs such as theirs could not be contracted out. Will their complaint prosper? (A) No. the management has the right to contract out jobs to secure efficient and economical operations. (B) Yes. They should be reinstated or absorbed by the security agency as its employees. (C) No. They are estopped from demanding reinstatement after receiving their separation pay. (D) Yes. The company cannot contract out regular jobs such as they had. (8) Although both are training programs, apprenticeship is different from learnership in that (A) a learner may be paid 25% less than the legal minimum wage while an apprentice is entitled to the minimum wage. (B) apprenticeship has to be covered by a written agreement; no such formality is needed in learnership. (C) in learnership, the employer undertakes to make the learner a regular employee; in apprenticeship, no such undertaking. (D) a learner is deemed a regular employee if terminated without his fault within one month of training; an apprentice attains employment status after six months of apprenticeship. (9) A golf and country club outsourced the jobs in its food and beverage department and offered the affected employees an early retirement package of 1 months pay for each year of service. The employees who accepted the package executed quitclaims. Thereafter, employees of a service contractor performed their jobs. Subsequently, the management contracted with other job

contractors to provide other services like the maintenance of physical facilities, golf operations, and administrative and support services. Some of the separated employees who signed quitclaims later filed complaints for illegal dismissal. Were they validly dismissed? (A) Yes. The jobs were given to job contractors, not to labor-only contractors, and the dismissed employees received higher separation pay than the law required. (B) No. The outsourcing and the employment termination were invalid since the management failed to show that it suffered severe financial losses. (C) No. Since the outsourcing of jobs in several departments entailed the separation of many employees, the club needed the Secretary of Labors approval of its actions. (D) No. Since the outsourced jobs were held by old-time regular employees, it was illegal for the club to terminate them and give the jobs to others. (10) Sampaguita Company wants to embark on a retrenchment program in view of declining sales. It identified five employees that it needed to separate. The human resource manager seems to recall that she has to give the five employees and the DOLE a 30day notice but she feels that she can give a shorter notice. What will you advise her? (A) Instead of giving a 30-day notice, she can just give a 30-day advanced salary and make the separation effective immediately. (B) So long as she gave DOLE a 30-day prior notice, she can give the employees a shorter notice. (C) The 30-day advance notice to the employee and the DOLE cannot be shortened even with a 30-day advance salary. (D) She can give a shorter notice if the retrenchment is due to severe and substantial losses. (11) Under the Labor Code, its provisions on working conditions, including the eight-hour work day rule, do not apply to domestic helpers. Does it follow from this that a domestic helper's workday is not limited by law? (A) No, since a domestic helper cannot be required to work more than ten hours a day. (B) Yes, since a domestic helper's hours of work depend on the need of the household he or she works for. (C) No, because a domestic helper is legally entitled to overtime pay after ten hours of work. (D) Yes, a domestic helper may be required to work twelve hours a day or beyond. (12) Under the Labor Code on Working Conditions and Rest Periods, a person hired by a high company official but paid for by the company to clean and maintain his staff house is regarded as (A) a person rendering personal service to another. (B) a regular company employee. (C) a family member. (D) domestic helper. (13) The union filed a notice of strike due to a bargaining deadlock. But, because the Secretary of Labor assumed jurisdiction over the dispute, the strike was averted. Meanwhile, the employer observed that the union engaged in a work slowdown. Contending that the slowdown was in fact an illegal strike, the employer dismissed all

the union officers. The union president complained of illegal dismissal because the employer should first prove his part in the slowdown. Is the union president correct? (A) Yes, since the employer gave him no notice of its finding that there was a slowdown. (B) Yes. The employer must prove the union presidents part in slowdown. (C) No. When a strike is illegal, the management has the right to dismiss the union president. (D) No. As the union president, it may be assumed that he led the slowdown. (14) The existing collective bargaining unit in Company X includes some fifty secretaries and clerks who routinely record and monitor reports required by their department heads. Believing that these secretaries and clerks should not be union members because of the confidential nature of their work, the management discontinued deducting union dues from their salaries. Is the managements action legal? (A) No, only managers are prohibited from joining unions; the law does not bar confidential employees from joining unions. (B) No, confidential employees are those who assist persons who formulate, determine, or enforce management policies in the field of labor relations. (C) Yes, secretaries and clerks of company executives are extensions of the management and, therefore, should not join the union. (D) No, confidential employees are those who handle executive records and payroll or serve as executive secretaries of top-level managers. (15) Jose Lovina had been member of the board of directors and Executive Vice President of San Jose Corporation for 12 years. In 2008, the San Jose stockholders did not elect him to the board of directors nor did the board reappoint him as Executive Vice President. He filed an illegal dismissal complaint with a Labor Arbiter. Contending that the Labor Arbiter had no jurisdiction over the case since Lovina was not an employee, the company filed a motion to dismiss. Should the motion be granted? (A) No, the Labor Arbiter has jurisdiction over all termination disputes. (B) Yes, it is the NLRC that has jurisdiction over disputes involving corporate officers. (C) No, a motion to dismiss is a prohibited pleading under the NLRC Rules of Procedure. (D) Yes, jurisdiction lies with the regular courts since the complainant was a corporate officer. (16) An employee proved to have been illegally dismissed is entitled to reinstatement and full backwages computed on the basis of his (A) basic salary plus the regular allowances and the thirteenth month pay. (B) basic salary plus the salary CBA increases during the pendency of his case. (C) basic salary plus the increases mandated by wage orders issued during the pendency of his case. (D) basic salary at the time of dismissal. (17) The meal time (lunch break) for the dining crew in Glorious Restaurant is either from 10 a.m. to 11 a.m. or from 1:30 p.m. to 2:30 p.m., with pay. But the management wants to change the

mealtime to 11: a.m. to 12 noon or 12:30 p.m. to 1:30 p.m., without pay. Will the change be legal? (A) Yes, absent an agreement to the contrary, the management determines work hours and, by law, meal break is without pay. (B) No, because lunchbreak regardless of time should be with pay. (C) Yes, the management has control of its operations. (D) No, because existing practice cannot be discontinued unilaterally. (18) The employees union in San Joaquin Enterprise continued their strike despite a return to work order from the Secretary of Labor. Because of this defiance, the employer dismissed the strikers. But the Labor Arbiter declared as illegal the dismissal of those whose commission of unlawful acts had not been proved. They were ordered immediately reinstated. The employer refused, however, to reinstate them on the ground that the rule on immediate reinstatement applies only to terminations due to just or authorized causes. Is the employers refusal justified? (A) No, every employee found to have been illegally dismissed is entitled to immediate reinstatement even pending appeal. (B) Yes. The employers refusal is legal and justified as a penalty for defying the secretarys lawful order. (C) Yes, the rule on immediate reinstatement does not apply to employees who have defied a return-to-work order. (D) No. The dismissal of the employees was valid; reinstatement is unwarranted. (19) Llanas Corporation and Union X, the certified bargaining agent of its employees, concluded a CBA for the period January 1, 2000 to December 31, 2004. But, long before the CBA expired, members of Union Y, the minority union, showed dissatisfaction with the CBA under the belief that Union X was a company union. Agitated by its members, Union Y filed a petition for a Certification Election on December 1, 2002. Will the petition prosper? (A) No, such a petition can only be filed within the freedom period of the CBA. (B) No, since a petition for certification can be filed only upon the expiration of the CBA. (C) Yes, a certification is the right remedy for ousting a company union. (D) Yes, employees should be allowed to cancel at the earliest opportunity a CBA that they believed was obtained by a company union. (20) Is it correct to say that under Philippine law a househelper has no right to security of tenure? (A) No, since a househelper can be dismissed only for just cause or when his agreed period of employment ends. (B) Yes, since it is the employer who determines the period of his service. (C) Yes, since a househelper can be dismissed with or without just cause. (D) No, since a househelper can be dismissed only for just cause, except when he has been employed for a definite period not exceeding one year. (21) Reach-All, a marketing firm with operating capital of P100,000, supplied sales persons to pharmaceutical companies to promote

their products in hospitals and doctors' offices. Reach-All trained these sales persons in the art of selling but it is the client companies that taught them the pharmacological qualities of their products. Reach-Alls roving supervisors monitored, assessed, and supervised their work performance. Reach-All directly paid their salaries out of contractor's fees it received. Under the circumstances, can the sales persons demand that they be absorbed as employees of the pharmaceutical firms? (A) No, they are Reach-Alls employees since it has control over their work performance. (B) Yes, since they receive training from the pharmaceutical companies regarding the products they will promote. (C) No, since they are bound by the agency agreement between Reach-All and the pharmaceutical companies. (D) Yes, since Reach-All does does not qualify as independent contractoremployer, its clients being the source of the employees salaries. (22) Executive Order No. 180, which protects government employees, does NOT apply to high-level employees, namely, (A) presidential appointees. (B) those performing policy-determining functions, excluding confidential employees and supervisors. (C) confidential employees and those performing policydetermining functions. (D) elective officials. (23) In the case of a househelper, reinstatement is not a statutory relief for unjust dismissal because of the confidentiality of his or her job. Instead, the househelper shall be paid (A) an indemnity equivalent to 15 days' pay plus compensation already earned. (B) a separation pay equivalent to one month's pay per year of service. (C) a separation pay equivalent to one-half month's pay per year of service. (D) 15 days' pay as indemnity plus wages lost from dismissal to finality of decision. (24) The CBA for the period January 2007 to December 2009 granted the employees a P40 per day increase with the understanding that it is creditable as compliance to any future wage order. Subsequently, the regional wage board increased by P20 the minimum wage in the employers area beginning January 2008. The management claims that the CBA increase may be considered compliance even if the Wage Order itself said that CBA increase is not creditable as compliance to the Wage Order. Is the management's claim valid? (A) Yes, since creditability of the CBA increase is the free and deliberate agreement and intention of the parties. (B) Yes, since the Wage Order cannot prejudice the managements vested interest in the provisions of the CBA. (C) No, disallowing creditability of CBA pay increase is within the wage board's authority. (D) No, the CBA increase and the Wage Order are essentially different and are to be complied with separately.

(25) When an employee works from 8 a.m. to 5 p.m. on a legal holiday falling on his rest day, which of the following formulas do you use to compute for his day's wage on that day? (A) His regular daily wage multiplied by 200% plus 30% of the 200% (B) His regular daily wage multiplied by 200% (C) His regular daily wage plus 200% (D) His daily regular wage (26) The employees rights to organize and to bargain collectively are means of exercising the broader right to participate in policy or decision-making processes. The employees' right to participate in policy and decision making processes is available (A) if a labor-management council exists. (B) if a labor-management council does not exist. (C) if a union exists and it agrees to the creation of a labor-management council. (D) whether or not a labor-management council exists. (27) If not used by the end of the year, the service incentive leave shall be (A) carried over to the next year. (B) converted to its money equivalent. (C) forfeited. (D) converted to cash and paid when the employee resigns or retires. (28) An employee is NOT entitled to financial assistance in cases of legal dismissal when the dismissal (A) is based on an offense reflecting the depraved character of the employee. (B) is based on serious misconduct or breach of the employer's trust. (C) is grounded on any of the just causes provided by the Labor Code. (D) when the employee has less than 10 years of service. (29) In a work-related environment, sexual harassment is committed when (A) the offender has authority, influence, or moral ascendancy over his subordinate victim. (B) the victims continued employment is conditioned on sexual favor from her. (C) the female victim grants the demand for sexual favor against her will. (D) the victim is not hired because she turned down the demand for sexual favor. (30) Government employees may elect a union as their exclusive representative but this right is not available to (A) regular employees in government instrumentalities and agencies. (B) employees of government-owned and -controlled corporations without original charters. (C) employees of government-owned-or-conrolled corporations with original charters. (D) employees of provincial and local government units. (31) Celia, an OFW that Moonshine Agency recruited and deployed, died in Syria, her place of work. Her death was not work-related, it

appearing that she had been murdered. Insisting that she committed suicide, the employer and the agency took no action to ascertain the cause of death and treated the matter as a closed case. The worker's family sued both the employer and the agency for moral and exemplary damages. May such damages be awarded? (A) Yes, the agency and the employers uncaring attitude makes them liable for such damages. (B) Yes, but only the principal is liable for such damages since the agency had nothing to do with Celias death. (C) No, since her death is not at all work-related. (D) No, since her death is not attributable to any act of the agency or the employer. (32) When the employer or his representative hurls serious insult on the honor or person of the employee, the law says that the employee (A) may leave work after at least a five-day notice to the employer. (B) may leave work at any time and file for constructive dismissal. (C) may leave work without giving a 30-day notice to the employer. (D) may abandon his job at once. (33) A sugar mill in Laguna, capitalized at P300 million, suffered a P10,000.00 loss last year. This year it dismissed three young female employees who gave birth in the last three years. In its termination report to DOLE, the sugar mill gave as reason for the dismissal retrenchment because of losses. Did it violate any law? (A) Yes, the law on retrenchment, the sugar mills loses not being substantial. (B) Yes, the law against violence committed on women and children. (C) No, except the natural law that calls for the protection and support of women. (D) No, but the management action confirms suspicion that some companies avoid hiring women because of higher costs. (34) Piece rate employees are those who are paid by results or other non-time basis. As such they are NOT entitled to overtime pay for work done beyond eight hours if (A) their workplace is away from the company's principal place of work. (B) they fail to fill up time sheets. (C) the product pieces they do are not countable. (D) the piece rate formula accords with the labor departments approved rates. (35) An employer may require an employee to work on the employee's rest day (A) to avoid irreparable loss to the employer. (B) only when there is a state of calamity. (C) provided he is paid an extra of at least 50% of his regular rate. (D) subject to 24-hour advance notice to the employee. (36) The State has a policy of promoting collective bargaining and voluntary arbitration as modes of settling labor disputes. To this end, the voluntary arbitrators jurisdiction has not been limited to interpretation and implementation of collective bargaining

agreements and company personnel policies. It may extend to all other labor disputes, provided (A) the extension does not cover cases of union busting. (B) the parties agreed to such extended jurisdiction. (C) the parties are allowed to appeal the voluntary arbitrator's decision. (D) the parties agreed in their CBA to broaden his jurisdiction. (37) Philworld, a POEA-licensed agency, recruited and deployed Mike with its principal, Delta Construction Company in Dubai for a 2-year project job. After he had worked for a year, Delta and Philworld terminated for unknown reason their agency agreement. Delta stopped paying Mike's salary. When Mike returned to the Philippines, he sued both Philworld and Delta for unpaid salary and damages. May Philworld, the agency, be held liable? (A) No, since Philworld, the recruitment agency, is not the employer liable for unpaid wages. (B) Yes, since the agency is equally liable with the foreign principal despite the termination of their contract between them. (C) Yes, since the law makes the agency liable for the principals malicious refusal to pay Mikes salary. (D) No, since Mike did not get paid only after Delta and Philworld terminated their contract. (38) Melissa, a coffee shop worker of 5 months, requested her employer for 5 days' leave with pay to attend to the case that she filed against her husband for physical assault two weeks earlier. May the employer deny her request for leave with pay? (A) Yes, the reason being purely personal, approval depends on the employers discretion and is without pay. (B) No, as victim of physical violence of her husband, she is entitled to five days paid leave to attend to her action against him. (C) No, the employer must grant the request but the leave will be without pay. (D) Yes, since she is not yet a permanent employee. (39) Quiel, a househelper in the Wilson household since 2006, resigned from his job for several reasons. One reason was the daily 12-hour workday without any rest day. When he left his job he had unpaid wages totaling P13,500.00 which his employer refused to pay. He wants to claim this amount though he is not interested in getting back his job. Where should he file his claim? (A) He should file his claim with the DSWD, which will eventually endorse it to the right agency. (B) Since he has no interest in reinstatement, he can file his claim with the office of the regional director of the Department of Labor. (C) He should file his claim exceeding P5,000.00 with the office of the labor arbiters, the regional arbitrators representing the NLRC. (D) He should go to the Employees Compensation Commission. (40) For labor, the Constitutionally adopted policy of promoting social justice in all phases of national development means (A) the nationalization of the tools of production. (B) the periodic examination of laws for the common good.

(C) the humanization of laws and equalization of economic forces. (D) the revision of laws to generate greater employment. (41) To avail himself of paternity leave with pay, when must the male employee file his application for leave? (A) Within one week from the expected date of delivery by the wife. (B) Not later than one week after his wifes delivery or miscarriage (C) Within a reasonable time from the expected deliver date of his wife. (D) When a physician has already ascertained the date the wife will give birth. (42) The constitution promotes the principle of shared responsibility between workers and employers, preferring the settlement of disputes through (A) compulsory arbitration. (B) collective bargaining. (C) voluntary modes, such as conciliation and mediation. (D) labor-management councils. (43) Which of the following is NOT a requisite for entitlement to paternity leave? (A) The employee is cohabiting with his wife when she gave birth or had a miscarriage. (B) The employee is a regular or permanent employee. (C) The wife has given birth or suffered a miscarriage. (D) The employee is lawfully married to his wife. (44) Of the four grounds mentioned below, which one has been judicially affirmed as justification for an employees refusal to follow an employers transfer order? (A) A transfer to another location is not in the employee's appointment paper. (B) The transfer deters the employee from exercising his right to self-organization. (C) The transfer will greatly inconvenience the employee and his family. (D) The transfer will result in additional housing and travel expenses for the employee. (45) Of the four definitions below, which one does NOT fit the definition of solo parent under the Solo Parents Welfare Act? (A) Solo parenthood while the other parent serves sentence for at least one year. (B) A woman who gives birth as a result of rape. (C) Solo parenthood due to death of spouse. (D) Solo parenthood where the spouse left for abroad and fails to give support for more than a year. (46) Albert and four others signed employment contracts with Reign Publishers from January 1 to March 31, 2011 to help clear up encoding backlogs. By first week of April 2011, however, they remained at work. On June 30 Reigns manager notified them that their work would end that day. Do they have valid reason to complain? (A) No, since fixed term employment, to which they agreed, is allowed.

(B) Yes, their job was necessary and desirable to the employers business and, therefore, they are regular employees. (C) Yes, when they worked beyond March without an extended fixed term employment contract, they became regular employees. (D) No, since the 3-month extension is allowed in such employment. (47) A handicapped worker may be hired as apprentice or learner, provided (A) he waives any claim to legal minimum wage. (B) his work is limited to apprenticeable job suitable to a handicapped worker. (C) he does not impede job performance in the operation for which he is hired. (D) he does not demand regular status as an employee. (48) The Secretary of Labor and Employment or his duly authorized representative, including labor regulations officers, shall have access to employer's records and premises during work hours. Why is this statement an inaccurate statement of the law? (A) Because the power to inspect applies only to employer records, not to the premises. (B) Because only the Secretary of Labor and Employment has the power to inspect, and such power cannot be delegated. (C) Because the law allows inspection anytime of the day or night, not only during work hours. (D) Because the power to inspect is already delegated to the DOLE regional directors, not to labor regulations officers. (49) In industrial homework, the homeworker does at his home the work that his employer requires of him, using employer-supplied materials. It differs from regular factory work in the sense that (A) the workers are not allowed to form labor organizations. (B) the workers' pay is fixed by informal agreement between the workers and their employer. (C) the workers are under very little supervision in the performance or method of work. (D) the workers are simply called homeworkers, not employees, hence not covered by the social security law. (50) Which of the following grounds exempts an enterprise from the service incentive leave law? (A) The employees already enjoy 15 days vacation leave with pay. (B) The employer's business has been suffering losses in the past three years. (C) The employer regularly employs seven employees or less. (D) The company is located in a special economic zone. (51) Which of the following acts is NOT considered unfair labor practice (ULP)? (A) Restraining employees in the exercise of the right to self-organization.

(B) Union's interference with the employee's right to selforganization. (C) Refusal to bargain collectively with the employer. (D) Gross violation of the collective bargaining agreement by the union. (52) In computing for 13th month pay, Balagtas Company used as basis both the employees regular base pay and the cash value of his unused vacation and sick leaves. After two and a half years, it announced that it had made a mistake and was discontinuing such practice. Is the management action legally justified? (A) Yes, since 13th month pay should only be one-twelfth of the regular pay. (B) No, since the erroneous computation has ripened into an established, nonwithdrawable practice. (C) Yes, an error is not a deliberate decision, hence may be rectified. (D) No, employment benefits can be withdrawn only through a CBA negotiation. (53) Where the petition for a certification election in an unorganized establishment is filed by a federation, it shall NOT be required to disclose the (A) names of the local chapter's officers and members. (B) names and addresses of the federation officers. (C) names and number of employees that initiated the union formation in the enterprise. (D) names of the employees that sought assistance from the federation in creating the chapter. (54) Under the Limited Portability law, funds from the GSIS and the SSS maybe transferred for the benefit of a worker who transfers from one system to the other. For this purpose, overlapping periods of membership shall be (A) credited only once. (B) credited in full. (C) proportionately reduced. (D) equally divided for the purpose of totalization. (55) Of the four tests below, which is the most determinative of the status of a legitimate contractor-employer? (A) The contractor performs activities not directly related to the principal's main business. (B) The contractor has substantial investments in tools, equipment, and other devices. (C) The contractor does not merely recruit, supply, or place workers. (D) The contractor has direct control over the employees manner and method of work performance. (56) X Companys CBA grants each employee a 14th month yearend bonus. Because the company is in financial difficulty, its head wants to negotiate the discontinuance of such bonus. Would such proposal violate the nondiminution rule in the Labor Code? (A) No, but it will certainly amount to negotiating in bad faith. (B) Yes since the rule is that benefits already granted in a CBA cannot be withdrawn or reduced. (C) No, since the law does not prohibit a negotiated discontinuance of a CBA benefit.

(D) Yes, since such discontinuance will cancel the enjoyment of existing benefits. (57) Night differential is differentiated from overtime pay in that (A) while overtime pay is given for overtime work done during day or night, night differential is given only for work done between 10:00 p.m. and 6:00 a.m. (B) while overtime pay is paid to an employee whether on day shift or night shift, night shift differential is only for employees regularly assigned to night work. (C) while overtime pay is for work done beyond eight hours, night differential is added to the overtime pay if the overtime work is done between 6:00 p.m. and 12 midnight. (D) while overtime pay is 25% additional to the employee's hourly regular wage, night differential is 10% of such hourly wage without overtime pay. (58) Differentiate a labor organization from a legitimate labor organization. (A) While the employees themselves form a labor organization, a legitimate labor organization is formed at the initiative of a national union or federation. (B) While the members of a labor organization consists only of rank and file employees, a legitimate labor organization consists of both supervisory and rank and file employees. (C) While a labor organization exists for a lawful purpose, a legitimate labor organization must, in addition, be registered with the labor department. (D) While the officers in a labor organization are elected in an informal way, the officers in legitimate labor organization are formally elected according to the union's constitution and by-laws. (59) The negotiating panels for the CBA of X Company established a rule that only employees of the company will seat in each panel. In the next session, the management panel objected to the presence of the union counsel. Still the negotiation proceeded. At the next session, the management panel again objected to the presence of the union counsel as a non-observance of the no outsider rule. The negotiation nonetheless proceeded. Does the management panel's objection to the presence of the union counsel constitute unfair labor practice through bad-faith bargaining? (A) Yes, the management is harping on a non-mandatory matter instead of proceeding with the mandatory subjects of bargaining. (B) No, there is no bargaining in bad faith since the bargaining proceeded anyway. (C) Yes, the management panel has no legal basis for limiting the composition of the union negotiating panel. (D) No, since it is the union that violates the ground rules fashioned by the parties, it is the one negotiating in bad faith. (60) Which of the following acts is NOT part of the regulatory and visitorial power of the Secretary of Labor and Employment over recruitment and placement agencies? The power to (A) order arrest of an illegal recruiter (B) inspect premises, books and records (C) cancel license or authority to recruit (D) garnish recruiter's bond

(61) Where there is a bargaining deadlock, who may file a notice of strike? (A) The majority members of the bargaining unit. (B) The recognized bargaining agent. (C) Any legitimate labor organization in the employers business. (D) The majority members of the bargaining union. (62) When a recruitment agency fails to deploy a recruit without valid reason and without the recruit's fault, the agency is obligated to (A) reimburse the recruit's documentary and processing expenses. (B) reimburse the recruits expenses with 6% interest. (C) pay the recruit damages equivalent to one years salary. (D) find another employer and deploy the recruit within 12 months. (63) Which of the following is an essential element of illegal recruitment? (A) The recruiter demands and gets money from the recruit but issues no receipt. (B) The recruiter gives the impression that he is able to send the recruit abroad. (C) The recruiter has insufficient capital and has no fixed address. (D) The recruiter has no authority to recruit. (64) A group of 15 regular rank-and-file employees of Bay Resort formed and registered an independent union. On hearing of this, the management called the officers to check who the union members were. It turned out that the members included the probationary staff, casuals, and the employees of the landscape contractor. The management contends that inclusion of nonregulars and employees of a contractor makes the unions composition inappropriate and its registration invalid. Is this correct? (A) Yes, union membership should be confined to directhired employees of the company. (B) Yes, the community of interest criterion should be observed not only in the composition of a bargaining unit but also in the membership of a union. (C) Yes, a union must have community of interest; the non-regulars do not have such interest. (D) No, union membership may include non-regulars since it differs from membership in a bargaining unit. (65) Which is NOT a guideline for the dismissal of an employee on the ground of loss of confidence? (A) Loss of confidence may not be arbitrarily invoked in the face of overwhelming evidence to the contrary. (B) Loss of confidence as cause of dismissal should be expressly embodied in written company rules. (C) The employee holds a position of trust and confidence. (D) Loss of confidence should not be simulated nor a mere afterthought to justify earlier action taken in bad faith. (66) Pedring, Daniel, and Paul were employees of Delibakery who resigned from their jobs but wanted to file money claims for unpaid

wages and 13th month pay. Pedrings claim totals P20,000.00, Daniels P3,000.00, and Pauls P22,000.00. Daniel changed his mind and now also wants reinstatement because he resigned only upon the instigation of Pedring and Paul. Where should they file their claims? (A) With the DOLE regional director for Pedring and Pauls claims with no reinstatement; with the labor arbiter for Daniels claim with reinstatement. (B) With the Office of the Regional Director of the Department of Labor for all claims to avoid multiplicity of suits. (C) With a labor arbiter for all three complainants. (D) With the DOLE Regional Director provided they are consolidated for expediency. (67) In a scenario like typhoon Ondoy, who may be required by the employer to work overtime when necessary to prevent loss of life or property? (A) Health personnel (B) Employees with first aid training (C) Security and safety personnel (D) Any employee (68) The management and Union X in Atisan Mining entered into a CBA for 1997 to 2001. After 6 months, a majority of the members of Union X formed Union Y and sought management recognition. The latter responded by not dealing with either union. But, when the CBAs economic provisions had to be renegotiated towards the end of the term of the CBA, the management chose to negotiate with Union Y, the newer union. Thus, Union X which negotiated the existing CBA charged the company with unfair labor practice (ULP). The company argued that it committed no unfair labor practice since the supposed violation had nothing to do with economic provisions of the CBA. Is the management right? (A) No. Refusal to comply with the CBAs economic provisions is not the only ground for ULP; a disregard of the entire CBA by refusing to renegotiate with the incumbent bargaining agent is also ULP, (B) Yes. No unfair labor practice was committed because the supposed violation has nothing to do with economic provisions of the CBA. (C) Yes. The management commits no ULP when it decided to renegotiate with the numerically majority union. (D) Yes. A CBA violation amounts to ULP only if the violation is gross, meaning flagrant or malicious refusal to comply with the CBAs economic provisions which is not the case here. (69) The apprenticeship program should be supplemented by theoretical instruction to be given by (A) the apprentice's school only where the apprentice is formally enrolled as a student. (B) the employer if the apprenticeship is done in the plant. (C) the civic organizations that sponsor the program. (D) the Department of Labor and Employment. (70) The Securities and Exchange Commission approved a merger that allowed Broad Bank to absorb the assets and liabilities of EBank. Broad Bank also absorbed EBanks rank-and-file employees without change in tenure, salary, and benefits. Broad Bank was

unionized but EBank was not. The Broad Bank bargaining union requested the management to implement the union security clause in their CBA by requiring the ex-EBank employees to join the union. Does the union security clause in the Broad Bank CBA bind the exEBank employees? (A) No, since the ex-EBank employees were not yet Broad Bank employees when that CBA was entered into. (B) No, Broad Banks absorption of ex-EBank employees was not a requirement of law or contract; hence, the CBA does not apply. (C) Yes, Broad Banks absorption of ex-EBank employees automatically makes the latter union members of Broad Banks bargaining union. (D) Yes, since the right not to join a labor union is subordinate to the policy of unionism that encourages collective representation and bargaining. (71) The employer must observe both substantive and procedural due process when dismissing an employee. If procedural due process is not observed, the dismissal will be regarded as (A) defective; the dismissal process has to be repeated. (B) an abuse of employer's discretion, rendering the dismissal void. (C) ineffectual; the dismissal will be held in abeyance. (D) legal and valid but the employer will be liable for indemnity. (72) Mario, an expert aircon technician, owns and manages a small aircon repair shop with little capital. He employs one full-time and two part-time technicians. When they do repair work in homes or offices, their clients do not tell them how to do their jobs since they are experts in what they do. The shop is shabby, merely rented, and lies in a small side street. Mario and the other technicians regard themselves as informal partners. They receive no regular salary and only earn commissions from service fees that clients pay. To what categories of workers do they fall? (A) Labor-only contractors (B) Job contractors (C) Pakyaw workers (D) Manpower agency contractors (73) How often should the collected service charges be distributed to employees in hotels and restaurants? (A) Every end of the month (B) Every two weeks (C) Every week (D) At the end of each work day (74) Which of the following conditions justifies a licensed employment agency to charge and collect fees for employment assistance? (A) The recruit has submitted his credentials to the employment agency. (B) The POEA has approved the agency's charges and fees. (C) The agency's principal has interviewed the applicant for the job. (D) The worker has obtained employment through the agency's efforts. (75) During the CBA negotiation the management panel proposed a redefinition of the rank-and-file bargaining unit to exclude HR

Specialist in the human resource department and Analyst in the research and development department. The union panel objected since those affected have already been included in the bargaining unit covered by the existing CBA and so could no longer be excluded. Is the union correct in insisting that their exclusion would amount to bad faith on the part of the management panel? (A) No, efforts to modify an existing CBA do not constitute bad faith if such modification does not diminish employment benefits. (B) Yes, the proposed exclusion amounts to managements violation of its duty to bargain because it disregards the bargaining history between the parties. (C) Yes, once the coverage of the bargaining unit has been contractually defined, it can no longer be redefined. (D) No, bargaining history is not the only factor that determines the coverage of the bargaining unit; seeking its redefinition is not negotiating in bad faith.

2011 Bar Examination Questionnaire for Commercial Law

(1) P rode a Sentinel Liner bus going to Baguio from Manila. At a stop-over in Tarlac, the bus driver, the conductor, and the passengers disembarked for lunch. P decided, however, to remain in the bus, the door of which was not locked. At this point, V, a vendor, sneaked into the bus and offered P some refreshments. When P rudely declined, V attacked him, resulting in P suffering from bruises and contusions. Does he have cause to sue Sentinel Liner? (A) Yes, since the carrier's crew did nothing to protect a passenger who remained in the bus during the stop-over. (B) No, since the carrier's crew could not have foreseen the attack. (C) Yes, since the bus is liable for anything that goes wrong in the course of a trip. (D) No, since the attack on P took place when the bus was at a stop-over. (2) A cargo ship of X Shipping, Co. ran aground off the coast of Cebu during a storm and lost all its cargo amounting to Php50 Million. The ship itself suffered damages estimated at Php80 Million. The cargo owners filed a suit against X Shipping but it invoked the doctrine of limited liability since its vessel suffered an Php80 Million damage, more than the collective value of all lost cargo. Is X Shipping correct? (A) Yes, since under that doctrine, the value of the lost cargo and the damage to the ship can be set-off. (B) No, since each cargo owner has a separate and individual claim for damages. (C) Yes, since the extent of the ships damage was greater than that of the value of the lost cargo. (D) No, since X Shipping neither incurred a total loss nor abandoned its ship. (3) A writes a promissory note in favor of his creditor, B. It says: "Subject to my option, I promise to pay B Php1 Million or his order or give Php1 Million worth of cement or to authorize him to sell my house worth Php1 Million. Signed, A." Is the note negotiable? (A) No, because the exercise of the option to pay lies with A, the maker and debtor. (B) No, because it authorizes the sale of collateral securities in case the note is not paid at maturity. (C) Yes, because the note is really payable to B or his order, the other provisions being merely optional. (D) Yes, because an election to require something to be done in lieu of payment of money does not affect negotiability. (4) ABC Corp. increased its capital stocks from Php10 Million to Php15 Million and, in the process, issued 1,000 new shares divided into Common Shares "B" and Common Shares "C." T, a stockholder owning 500 shares, insists on buying the newly issued shares through a right of pre-emption. The company claims, however, that its By-laws deny T any right of pre-emption. Is the corporation correct? (A) No, since the By-Laws cannot deny a shareholder his right of pre-emption. (B) Yes, but the denial of his pre-emptive right extends only to 500 shares. (C) Yes, since the denial of the right under the By-laws is binding on T.

(D) No, since pre-emptive rights are governed by the articles of incorporation. (5) M makes a promissory note that states: "I, M, promise to pay Php5,000.00 to B or bearer. Signed, M." M negotiated the note by delivery to B, B to N, and N to O. B had known that M was bankrupt when M issued the note. Who would be liable to O? (A) M and N since they may be assumed to know of M's bankruptcy (B) N, being O's immediate negotiator of a bearer note (C) B, M, and N, being indorsers by delivery of a bearer note (D) B, having known of M's bankruptcy (6) S delivered 10 boxes of cellphones to Trek Bus Liner, for transport from Manila to Ilocos Sur on the following day, for which S paid the freightage. Meanwhile, the boxes were stored in the bus liners bodega. That night, however, a robber broke into the bodega and stole Ss boxes. S sues Trek Bus Liner for contractual breach but the latter argues that S has no cause of action based on such breach since the loss occurred while the goods awaited transport. Who is correct? (A) The bus liner since the goods were not lost while being transported. (B) S since the goods were unconditionally placed with T for transportation. (C) S since the freightage for the goods had been paid. (D) The bus liner since the loss was due to a fortuitous event. (7) X Corp. operates a call center that received orders for pizzas on behalf of Y Corp. which operates a chain of pizza restaurants. The two companies have the same set of corporate officers. After 2 years, X Corp. dismissed its call agents for no apparent reason. The agents filed a collective suit for illegal dismissal against both X Corp. and Y Corp. based on the doctrine of piercing the veil of corporate fiction. The latter set up the defense that the agents are in the employ of X Corp. which is a separate juridical entity. Is this defense appropriate? (A) No, since the doctrine would apply, the two companies having the same set of corporate officers. (B) No, the real employer is Y Corp., the pizza company, with X Corp. serving as an arm for receiving its outside orders for pizzas. (C) Yes, it is not shown that one company completely dominates the finances, policies, and business practices of the other. (D) Yes, since the two companies perform two distinct businesses. (8) A negotiable instrument can be indorsed by way of a restrictive indorsement, which prohibits further negotiation and constitutes the indorsee as agent of the indorser. As agent, the indorsee has the right, among others, to (A) demand payment of the instrument only. (B) notify the drawer of the payment of the instrument. (C) receive payment of the instrument. (D) instruct that payment be made to the drawee. (9) Under the Negotiable Instruments Law, a signature by procuration operates as a notice that the agent has but a limited authority to sign. Thus, a person who takes a bill that is drawn,

accepted, or indorsed by procuration is duty-bound to inquire into the extent of the agent's authority by: (A) examining the agents special power of attorney. (B) examining the bill to determine the extent of such authority. (C) asking the agent about the extent of such authority. (D) asking the principal about the extent of such authority. (10) Under the Negotiable Instruments Law, if the holder has a lien on the instrument which arises either from a contract or by implication of law, he would be a holder for value to the extent of (A) his successor's interest. (B) his predecessor's interest. (C) the lien in his favor. (D) the amount indicated on the instrument's face. (11) The liability of a common carrier for the goods it transports begins from the time of (A) conditional receipt. (B) constructive receipt. (C) actual receipt. (D) either actual or constructive receipt. (12) On Xs failure to pay his loan to ABC Bank, the latter foreclosed the Real Estate Mortgage he executed in its favor. The auction sale was set for Dec. 1, 2010 with the notices of sale published as the law required. The sale was, however, cancelled when Dec. 1, 2010 was declared a holiday and re-scheduled to Jan. 10, 2011 without republication of notice. The auction sale then proceeded on the new date. Under the circumstances, the auction sale is (A) rescissible. (B) unenforceable. (C) void. (D) voidable. (13) X executed a promissory note with a face value of Php50,000.00, payable to the order of Y. Y indorsed the note to Z, to whom Y owed Php30,000.00. If X has no defense at all against Y, for how much may Z collect from X? (A) Php20,000.00, as he is a holder for value to the extent of the difference between Y's debt and the value of the note. (B) Php30,000.00, as he is a holder for value to the extent of his lien. (C) Php50,000.00, but with the obligation to hold Php20,000.00 for Y's benefit. (D) None, as Z's remedy is to run after his debtor, Y. (14) Under the Anti-Money Laundering Law, a covered institution is required to maintain a system of verifying the true identity of their clients as well as persons purporting to act on behalf of (A) those doing business with such clients. (B) unknown principals. (C) the covered institution. (D) such clients. (15) It is settled that neither par value nor book value is an accurate indicator of the fair value of a share of stock of a corporation. As to

unpaid subscriptions to its shares of stock, as they are regarded as corporate assets, they should be included in the (A) capital value. (B) book value. (C) par value. (D) market value. (16) P sold to M 10 grams of shabu worth Php5,000.00. As he had no money at the time of the sale, M wrote a promissory note promising to pay P or his order Php5,000. P then indorsed the note to X (who did not know about the shabu), and X to Y. Unable to collect from P, Y then sued X on the note. X set up the defense of illegality of consideration. Is he correct? (A) No, since X, being a subsequent indorser, warrants that the note is valid and subsisting. (B) No, since X, a general indorser, warrants that the note is valid and subsisting. (C) Yes, since a void contract does not give rise to any right. (D) Yes, since the note was born of an illegal consideration which is a real defense. (17) In a contract of carriage, the common carrier is liable for the injury or death of a passenger resulting from its employees fault although the latter acted beyond the scope of his authority. This is based on the (A) rule that the carrier has an implied duty to transport the passenger safely. (B) rule that the carrier has an express duty to transport the passenger safely (C) Doctrine of Respondeat Superior. (D) rule in culpa aquiliana. (18) A holder in due course holds the instrument free from any defect of title of prior parties and free from defenses available to prior parties among themselves. An example of such a defense is (A) fraud in inducement. (B) duress amounting to forgery. (C) fraud in esse contractus. (D) alteration. (19) In elections for the Board of Trustees of non-stock corporations, members may cast as many votes as there are trustees to be elected but may not cast more than one vote for one candidate. This is true (A) unless set aside by the members in plenary session. (B) in every case even if the Board of Trustees resolves otherwise. (C) unless otherwise provided in the Articles of Incorporation or in the By-laws. (D) in every case even if the majority of the members decide otherwise during the elections. (20) The rule is that the valuation of the shares of a stockholder who exercises his appraisal rights is determined as of the day prior to the date on which the vote was taken. This is true (A) regardless of any depreciation or appreciation in the share's fair value. (B) regardless of any appreciation in the share's fair value. (C) regardless of any depreciation in the share's fair value.

(D) only if there is no appreciation or depreciation in the share's fair value. (21) T Shipping, Co. insured all of its vessels with R Insurance, Co. The insurance policies stated that the insurer shall answer for all damages due to perils of the sea. One of the insured's ship, the MV Dona Priscilla, ran aground in the Panama Canal when its engine pipes leaked and the oil seeped into the cargo compartment. The leakage was caused by the extensive mileage that the ship had accumulated. May the insurer be made to answer for the damage to the cargo and the ship? (A) Yes, because the insurance policy covered any or all damage arising from perils of the sea. (B) Yes, since there appears to have been no fault on the part of the shipowner and shipcaptain. (C) No, since the proximate cause of the damage was the breach of warranty of seaworthiness of the ship. (D) No, since the proximate cause of the damage was due to ordinary usage of the ship, and thus not due to a peril of the sea. (22) X has been a long-time household helper of Z. X's husband, Y, has also been Z's long-time driver. May Z insure the lives of both X and Y with Z as beneficiary? (A) Yes, since X and Y render services to Z. (B) No, since X and Y have no pecuniary interest on the life of Z arising from their employment with him. (C) No, since Z has no pecuniary interest in the lives of X and Y arising from their employment with him. (D) Yes, since X and Y are Zs employees. (23) X, Co., a partnership, is composed of A (capitalist partner), B (capitalist partner) and C (industrial partner). If you were partner A, who between B and C would you have an insurable interest on, such that you may then insure him? (A) No one, as there is merely a partnership contract among A, B and C. (B) Both B and C, as they are your partners. (C) Only C, as he is an industrial partner. (D) Only B, as he is a capitalist partner. (24) X is the holder of an instrument payable to him (X) or his order, with Y as maker. X then indorsed it as follows: "Subject to no recourse, pay to Z. Signed, X." When Z went to collect from Y, it turned out that Y's signature was forged. Z now sues X for collection. Will it prosper? (A) Yes, because X, as a conditional indorser, warrants that the note is genuine. (B) Yes, because X, as a qualified indorser, warrants that the note is genuine. (C) No, because X made a qualified indorsement. (D) No, because a qualified indorsement does not include the warranty of genuineness. (25) A bill of exchange has T for its drawee, U as drawer, and F as holder. When F went to T for presentment, F learned that T is only 15 years old. F wants to recover from U but the latter insists that a notice of dishonor must first be made, the instrument being a bill of exchange. Is he correct? (A) Yes, since a notice of dishonor is essential to charging the drawer.

(B) No, since T can waive the requirement of notice of dishonor. (C) No, since F can treat U as maker due to the minority of T, the drawee. (D) Yes, since in a bill of exchange, notice of dishonor is at all times required. (26) An insured, who gains knowledge of a material fact already after the effectivity of the insurance policy, is not obliged to divulge it. The reason for this is that the test of concealment of material fact is determined (A) at the time of the issuance of the policy. (B) at any time before the payment of premium. (C) at the time of the payment of the premium. (D) at any time before the policy becomes effective. (27) T, the captain of MV Don Alan, while asleep in his cabin, dreamt of an Intensity 8 earthquake along the path of his ship. On waking up, he immediately ordered the ship to return to port. True enough, the earthquake and tsunami struck three days later and his ship was saved. Was the deviation proper? (A) Yes, because the deviation was made in good faith and on a reasonable ground for believing that it was necessary to avoid a peril. (B) No, because no reasonable ground for avoiding a peril existed at the time of the deviation. (C) No, because T relied merely on his supposed gift of prophecy. (D) Yes, because the deviation took place based on a reasonable belief of the captain. (28) X, drawee of a bill of exchange, wrote the words: "Accepted, with promise to make payment within two days. Signed, X." The drawer questioned the acceptance as invalid. Is the acceptance valid? (A) Yes, because the acceptance is in reality a clear assent to the order of the drawer to pay. (B) Yes, because the form of the acceptance is really immaterial. (C) No, because the acceptance must be a clear assent to the order of the drawer to pay. (D) No, because the document must not express that the drawee will perform his promise within two days. (29) X came up with a new way of presenting a telephone directory in a mobile phone, which he dubbed as the "iTel" and which uses lesser time for locating names and telephone numbers. May X have his "iTel" copyrighted in his name? (A) No, because it is a mere system or method. (B) Yes, because it is an original creation. (C) Yes, because it entailed the application of X's intellect. (D) No, because it did not entail any application of X's intellect. (30) D, debtor of C, wrote a promissory note payable to the order of C. C's brother, M, misrepresenting himself as Cs agent, obtained the note from D, then negotiated it to N after forging C's signature. N indorsed it to E, who indorsed it to F, a holder in due course. May F recover from E? (A) No, since the forgery of C's signature results in the discharge of E.

(B) Yes, since only the forged signature is inoperative and E is bound as indorser. (C) No, since the signature of C, the payee, was forged. (D) Yes, since the signature of C is immaterial, he being the payee. (31) A material alteration of an instrument without the assent of all parties liable thereon results in its avoidance, EXCEPT against a (A) prior indorsee. (B) subsequent acceptor. (C) subsequent indorser. (D) prior acceptor. (32) X constituted a chattel mortgage on a car (valued at Php1 Million pesos) to secure a P500,000.00 loan. For the mortgage to be valid, X should have (A) the right to mortgage the car to the extent of half its value. (B) ownership of the car. (C) unqualified free disposal of his car. (D) registered the car in his name. (33) B borrowed Php1 million from L and offered to him his BMW car worth Php1 Million as collateral. B then executed a promissory note that reads: "I, B, promise to pay L or bearer the amount of Php1 Million and to keep my BMW car (loan collateral) free from any other encumbrance. Signed, B." Is this note negotiable? (A) Yes, since it is payable to bearer. (B) Yes, since it contains an unconditional promise to pay a sum certain in money. (C) No, since the promise to just pay a sum of money is unclear. (D) No, since it contains a promise to do an act in addition to the payment of money. (34) A bank can be placed under receivership when, if allowed to continue in business, its depositors or creditors would incur (A) probable losses (B) inevitable losses (C) possible losses (D) a slight chance of losses (35) EFG Foundation, Inc., a non-profit organization, scheduled an election for its six-member Board of Trustees. X, Y and Z, who are minority members of the foundation, wish to exercise cumulative voting in order to protect their interest, although the Foundation's Articles and By-laws are silent on the matter. As to each of the three, what is the maximum number of votes that he/she can cast? (A) 6 (B) 9 (C) 12 (D) 3 (36) If the drawer and the drawee are the same person, the holder may present the instrument for payment without need of a previous presentment for acceptance. In such a case, the holder treats it as a (A) non-negotiable instrument. (B) promissory note. (C) letter of credit.

(D) check. (37) D draws a bill of exchange that states: "One month from date, pay to B or his order Php100,000.00. Signed, D." The drawee named in the bill is E. B negotiated the bill to M, M to N, N to O, and O to P. Due to non-acceptance and after proceedings for dishonor were made, P asked O to pay, which O did. From whom may O recover? (A) B, being the payee (B) N, as indorser to O (C) E, being the drawee (D) D, being the drawer (38) T, an associate attorney in XYZ Law Office, wrote a newspaper publisher a letter disputing a columnists claim about an incident in the attorneys family. T used the law firms letterhead and its computer in preparing the letter. T also requested the firms messenger to deliver the letter to the publisher. Who owns the copyright to the letter? (A) T, since he is the original creator of the contents of the letter. (B) Both T and the publisher, one wrote the letter to the other who has possession of it. (C) The law office since T was an employee and he wrote it on the firms letterhead. (D) The publisher to whom the letter was sent. (39) E received goods from T for display and sale in E's store. E was to turn over to T the proceeds of any sale and return the ones unsold. To document their agreement, E executed a trust receipt in Ts favor covering the goods. When E failed to turn over the proceeds from his sale of the goods or return the ones unsold despite demand, he was charged in court for estafa. E moved to dismiss on the ground that his liability is only civil. Is he correct? (A) No, since he committed fraud when he promised to pay for the goods and did not. (B) No, since his breach of the trust receipt agreement subjects him to both civil and criminal liability for estafa. (C) Yes, since E cannot be charged with estafa over goods covered a trust receipt. (D) Yes, since it was merely a consignment sale and the buyer could not pay. (40) The authorized alteration of a warehouse receipt which does not change its tenor renders the warehouseman liable according to the terms of the receipt (A) in its original tenor if the alteration is material. (B) in its original tenor. (C) as altered if there is fraud. (D) as altered. (41) Any agreement binding upon the holder to extend the time of payment or to postpone the holder's right to enforce the instrument results in the discharge of the party secondarily liable unless made with the latter's consent. This agreement refers to one which the holder made with the (A) principal debtor. (B) principal creditor. (C) secondary creditor. (D) secondary debtor.

(42) Upon execution of a trust receipt over goods, the party who is obliged to release such goods and who retains security interest on those goods, is called the (A) holder. (B) shipper. (C) entrustee. (D) entrustor. (43) X, warehouseman, sent a text message to Y, to whom X had issued a warehouse receipt for Y's 500 sacks of corn, notifying him of the due date and time to settle the storage fees. The message stated also that if Y does not settle the warehouse charges within 10 days, he will advertise the goods for sale at a public auction. When Y ignored the demand, X sold 100 sacks of corn at a public auction. For Xs failure to comply with the statutory requirement of written notice to satisfy his lien, the sale of the 100 sacks of corn is (A) voidable. (B) rescissible. (C) unenforceable. (D) void. (44) On June 1, 2011, X mailed to Y Insurance, Co. his application for life insurance, with payment for 5 years of premium enclosed in it. On July 21, 2011, the insurance company accepted the application and mailed, on the same day, its acceptance plus the cover note. It reached X's residence on August 11, 2011. But, as it happened, on August 4, 2011, X figured in a car accident. He died a day later. May X's heirs recover on the insurance policy? (A) Yes, since under the Cognition Theory, the insurance contract was perfected upon acceptance by the insurer of X's application. (B) No, since there is no privity of contract between the insurer and Xs heirs. (C) No, since X had no knowledge of the insurer's acceptance of his application before he died. (D) Yes, since under the Manifestation Theory, the insurance contract was perfected upon acceptance of the insurer of X's application. (45) A bill of exchange has D as drawer, E as drawee and F as payee. The bill was then indorsed to G, G to H, and H to I. I, the current holder presented the bill to E for acceptance. E accepted but, as it later turned out, D is a fictitious person. Is E freed from liability? (A) No, since by accepting, E admits the existence of the drawer. (B) No, since by accepting, E warrants that he is solvent. (C) Yes, if E was not aware of that fact at the time of acceptance. (D) Yes, since a bill of exchange with a fictitious drawer is void and inexistent. (46) Due to his debt to C, D wrote a promissory note which is payable to the order of C. C's brother, M, misrepresenting himself as agent of C, obtained the note from D. M then negotiated the note to N after forging the signature of C. May N enforce the note against D? (A) Yes, since D is the principal debtor. (B) No, since the signature of C was forged. (C) No, since it is C who can enforce it, the note being payable to the order of C.

(D) Yes, since D, as maker, is primarily liable on the note. (47) T Corp. has a corporate term of 20 years under its Articles of Incorporation or from June 1, 1980 to June 1, 2000. On June 1, 1991 it amended its Articles of Incorporation to extend its life by 15 years from June 1, 1980 to June 1, 2015. The SEC approved this amendment. On June 1, 2011, however, T Corp decided to shorten its term by 1 year or until June 1, 2014. Both the 1991 and 2011 amendments were approved by majority vote of its Board of Directors and ratified in a special meeting by its stockholders representing at least 2/3 of its outstanding capital stock. The SEC, however, disapproved the 2011 amendment on the ground that it cannot be made earlier than 5 years prior to the expiration date of the corporate term, which is June 1, 2014. Is this SEC disapproval correct? (A) No, since the 5-year rule on amendment of corporate term applies only to extension, not to shortening, of term. (B) Yes, any amendment affecting corporate term cannot be made earlier than 5 years prior to the corporations expiration date. (C) No, since a corporation can in fact have a corporate life of 50 years. (D) Yes, the amendment to shorten corporate term cannot be made earlier than 5 years prior to the corporations expiration date. (48) B, while drunk, accepted a passenger in his taxicab. B then drove the taxi recklessly, and inevitably, it crashed into an electric post, resulting in serious physical injuries to the passengers. The latter then filed a suit for tort against B's operator, A, but A raised the defense of having exercised extraordinary diligence in the safety of the passenger. Is his defense tenable? (A) Yes, as a common carrier can rebut the presumption of negligence by raising such a defense. (B) No, as in tort actions, the proper defense is due diligence in the selection and supervision of the employee by the employer. (C) No, as B, the common carrier's employee, was obviously negligent due to his intoxication. (D) Yes, as a common carrier can invoke extraordinary diligence in the safety of passengers in tort cases. (49)X is a director in T Corp. who was elected to a 1-year term on Feb. 1, 2010. On April 11, 2010, X resigned and was replaced by R, who assumed as director on May 17, 2010. On Nov. 21, 2010, R died. S was then elected in his place. Until which time should S serve as director? (A) April 11, 2011. (B) Feb. 1, 2011. (C) May 17, 2011. (D) Nov. 21, 2011. (50) M, the maker, issued a promissory note to P, the payee which states: "I, M, promise to pay P or order the amount of Php1 Million. Signed, M." P negotiated the note by indorsement to N, then N to O also by indorsement, and O to Q, again by indorsement. But before O indorsed the note to Q, O's wife wrote the figure "2" on the note after "Php1" without O's knowledge, making it appear that the note is for Php12 Million. For how much is O liable to Q? (A) Php1 Million since it is the original tenor of the note. (B) Php1 Million since he warrants that the note is genuine and in all respects what it purports to be.

(C) Php12 Million since he warrants his solvency and that he has a good title to the note. (D) Php12 Million since he warrants that the note is genuine and in all respects what it purports to be. (51) X Corp., whose business purpose is to manufacture and sell vehicles, invested its funds in Y Corp., an investment firm, through a resolution of its Board of Directors. The investment grew tremendously on account of Y Corp.'s excellent business judgment. But a minority stockholder in X Corp. assails the investment as ultra vires. Is he right and, if so, what is the status of the investment? (A) Yes, it is an ultra vires act of the corporation itself but voidable only, subject to stockholders ratification. (B) Yes, it is an ultra vires act of its Board of Directors and thus void. (C) Yes, it is an ultra vires act of its Board of Directors but voidable only, subject to stockholders ratification. (D) Yes, it is an ultra vires act of the corporation itself and, consequently, void. (52) Notice of dishonor is not required to be made in all cases. One instance where such notice is not necessary is when the indorser is the one to whom the instrument is suppose to be presented for payment. The rationale here is that the indorser (A) already knows of the dishonor and it makes no sense to notify him of it. (B) is bound to make the acceptance in all cases. (C) has no reason to expect the dishonor of the instrument. (D) must be made to account for all his actions. (53) "Eagleson Refillers, Co.," a firm that sells water to the public, opposes the trade name application of "Eagleson Laundry, Co.," on the ground that such trade name tends to deceive trade circles or confuse the public with respect to the water firms registered trade name. Will the opposition prosper? (A) Yes, since such use is likely to deceive or confuse the public. (B) Yes, since both companies use water in conducting their business. (C) No, since the companies are not engaged in the same line of business. (D) No, since the root word "Eagle" is a generic name not subject to registration. (54) For a constructive total loss to exist in marine insurance, it is required that the person insured relinquish his interest in the thing insured. This relinquishment must be (A) actual. (B) constructive first and if it fails, then actual. (C) either actual or constructive. (D) constructive. (55) The Corporation Code sanctions a contract between two or more corporations which have interlocking directors, provided there is no fraud that attends it and it is fair and reasonable under the circumstances. The interest of an interlocking director in one corporation may be either substantial or nominal. It is nominal if his interest: (A) does not exceed 25% of the outstanding capital stock. (B) exceeds 25% of the outstanding capital stock.

(C) exceeds 20% of the outstanding capital stock. (D) does not exceed 20% of the outstanding capital stock. (56) X, an amateur astronomer, stumbled upon what appeared to be a massive volcanic eruption in Jupiter while peering at the planet through his telescope. The following week, X, without notes, presented a lecture on his findings before the Association of Astronomers of the Philippines. To his dismay, he later read an article in a science journal written by Y, a professional astronomer, repeating exactly what X discovered without any attribution to him. Has Y infringed on X's copyright, if any? (A) No, since X did not reduce his lecture in writing or other material form. (B) Yes, since the lecture is considered Xs original work. (C) No, since no protection extends to any discovery, even if expressed, explained, illustrated, or embodied in a work. (D) Yes, since Ys article failed to make any attribution to X. (57) In case of disagreement between the corporation and a withdrawing stockholder who exercises his appraisal right regarding the fair value of his shares, a three-member group shall by majority vote resolve the issue with finality. May the wife of the withdrawing stockholder be named to the threemember group? (A) No, the wife of the withdrawing shareholder is not a disinterested person. (B) Yes, since she could best protect her husband's shareholdings. (C) Yes, since the rules do not discriminate against wives. (D) No, since the stockholder himself should sit in the three-member group. (58) Apart from economic rights, the author of a copyright also has moral rights which he may transfer by way of assignment. The term of these moral rights shall last (A) during the author's lifetime and for 50 years after his death. (B) forever. (C) 50 years from the time the author created his work. (D) during the author's lifetime. (59) Which of the following indorsers expressly warrants in negotiating an instrument that 1) it is genuine and true; 2) he has a good title to it; 3) all prior parties have capacity to negotiate; and 4) it is valid and subsisting at the time of his indorsement? (A) The irregular indorser. (B) The regular indorser. (C) The general indorser. (D) The qualified indorser. (60) Where the insurer was made to pay the insured for a loss covered by the insurance contract, such insurer can run after the third person who caused the loss through subrogation. What is the basis for conferring the right of subrogation to the insurer? (A) Their express stipulation in the contract of insurance. (B) The equitable assignment that results from the insurers payment of the insured. (C) The insureds formal assignment of his right to indemnification to the insurer. (D) The insureds endorsement of its claim to the insurer.

(61) X invented a device which, through the use of noise, can recharge a cellphone battery. He applied for and was granted a patent on his device, effective within the Philippines. As it turns out, a year before the grant of X's patent, Y, also an inventor, invented a similar device which he used in his cellphone business in Manila. But X files an injunctive suit against Y to stop him from using the device on the ground of patent infringement. Will the suit prosper? (A) No, since the correct remedy for X is a civil action for damages. (B) No, since Y is a prior user in good faith. (C) Yes, since X is the first to register his device for patent registration. (D) Yes, since Y unwittingly used Xs patented invention. (62) P, a sales girl in a flower shop at the Ayala Station of the Metro Rail Transit (MRT) bought two tokens or tickets, one for her ride to work and another for her ride home. She got to her flower shop where she usually worked from 8 a.m. to 5 p.m. At about 3 p.m., while P was attending to her duties at the flower shop, two crews of the MRT got into a fight near the flower shop, causing injuries to P in the process. Can P sue the MRT for contractual breach as she was within the MRT premises where she would shortly take her ride home? (A) No, since the incident took place, not in an MRT train coach, but at the MRT station. (B) No, since P had no intention to board an MRT train coach when the incident occured. (C) Yes, since she already had a ticket for her ride home and was in the MRTs premises at the time of the incident. (D) Yes, since she bought a round trip ticket and MRT had a duty while she was at its station to keep her safe for her return trip. (63) Forgery of bills of exchange may be subdivided into, a) forgery of an indorsement on the bill and b) forgery of the drawer's signature, which may either be with acceptance by the drawee, or (A) with acceptance but the bill is paid by the drawee. (B) without acceptance but the bill is paid by the drawer. (C) without acceptance but the bill is paid by the drawee. (D) with acceptance but the bill is paid by the drawer. (64) If an insurance policy prohibits additional insurance on the property insured without the insurer's consent, such provision being valid and reasonable, a violation by the insured (A) reduces the value of the policy. (B) avoids the policy. (C) offsets the value of the policy with the additional insurancess value. (D) forfeits premiums already paid. (65) X found a check on the street, drawn by Y against ABC Bank, with Z as payee. X forged Z's signature as an indorser, then indorsed it personally and delivered it to DEF Bank. The latter, in turn, indorsed it to ABC Bank which charged it to the Ys account. Y later sued ABC Bank but it set up the forgery as its defense. Will it prosper? (A) No, since the payee's signature has been forged. (B) No, since Ys remedy is to run after the forger, X. (C) Yes, since forgery is only a personal defense.

(D) Yes, since ABC Bank is bound to know the signature of Y, its client. (66) The rule is that no stock dividend shall be issued without the approval of stockholders representing at least 2/3 of the outstanding capital stock at a regular or special meeting called for the purpose. As to other forms of dividends: (A) a mere majority of the entire Board of Directors applies. (B) a mere majority of the quorum of the Board of Directors applies. (C) a mere majority of the votes of stockholders representing the outstanding capital stock applies. (D) the same rule of 2/3 votes applies. (67) X, at Ys request, executed a Real Estate Mortgage (REM) on his (Xs) land to secure Y's loan from Z. Z successfully foreclosed the REM when Y defaulted on the loan but half of Y's obligation remained unpaid. May Z sue X to enforce his right to the deficiency? (A) Yes, but solidarily with Y. (B) Yes, since Xs is deemed to warrant that his land would cover the whole obligation. (C) No, since it is the buyer at the auction sale who should answer for the deficiency. (D) No, because X is not Zs debtor. (68) May a publicly listed universal bank own 100% of the voting stocks in another universal bank and in a commercial bank? (A) Yes, if with the permission of the Bangko Sentral ng Pilipinas. (B) No, since it has no power to invest in equities. (C) Yes, as there is no prohibition on it. (D) No, since under the law, the 100% ownership on voting stocks must be in either bank only. (69) Perils of the ship, under marine insurance law, refer to loss which in the ordinary course of events results from (A) natural and inevitable actions of the sea. (B) natural and ordinary actions of the sea. (C) unnatural and inevitable actions of the sea. (D) unnatural and ordinary actions of the sea. (70) Under the Intellectual Property Code, lectures, sermons, addresses or dissertations prepared for oral delivery, whether or not reduced in writing or other material forms, are regarded as (A) non-original works. (B) original works. (C) derivative works. (D) not subject to protection. (71) Can a drawee who accepts a materially altered check recover from the holder and the drawer? (A) No, he cannot recover from either of them. (B) Yes from both of them. (C) Yes but only from the drawer. (D) Yes but only from the holder. (72) The rule is that the intentional cancellation of a person secondarily liable results in the discharge of the latter. With respect to an indorser, the holder's right to cancel his signature is:

(A) without limitation. (B) not limited to the case where the indorsement is necessary to his title. (C) limited to the case where the indorsement is not necessary to his title. (D) limited to the case where the indorsement is necessary to his title. (73) X, in the hospital for kidney dysfunction, was about to be discharged when he met his friend Y. X told Y the reason for his hospitalization. A month later, X applied for an insurance covering serious illnesses from ABC Insurance, Co., where Y was working as Corporate Secretary. Since X had already told Y about his hospitalization, he no longer answered a question regarding it in the application form. Would this constitute concealment? (A) Yes, since the previous hospitalization would influence the insurer in deciding whether to grant X's application. (B) No, since Y may be regarded as ABCs agent and he already knew of Xs previous hospitalization. (C) Yes, it would constitute concealment that amounts to misrepresentation on X's part. (D) No, since the previous illness is not a material fact to the insurance coverage. (74) Several American doctors wanted to set up a group clinic in the Philippines so they could render modern medical services. If the clinic is to be incorporated under our laws, what is the required foreign equity participation in such a corporation? (A) 40% (B) 0% (C) 60% (D) 70% (75) X executed a promissory note in favor of Y by way of accommodation. It says: "Pay to Y or order the amount of Php50,000.00. Signed, X." Y then indorsed the note to Z, and Z to T. When T sought collection from Y, the latter countered as indorser that there should have been a presentment first to the maker who dishonors it. Is Y correct? (A) No, since Y is the real debtor and thus, there is no need for presentment for payment and dishonor by the maker. (B) Yes, since as an indorser who is secondarily liable, there must first be presentment for payment and dishonor by the maker. (C) No, since the absolute rule is that there is no need for presentment for payment and dishonor to hold an indorser liable. (D) Yes, since the secondary liability of Y and Z would only arise after presentment for payment and dishonor by the maker. (76) The Board of Directors of XYZ Corp. unanimously passed a Resolution approving the taking of steps that in reality amounted to willful tax evasion. On discovering this, the government filed tax evasion charges against all the companys members of the board of directors. The directors invoked the defense that they have no personal liability, being mere directors of a fictional being. Are they correct? (A) No, since as a rule only natural persons like the members of the board of directors can commit corporate crimes.

(B) Yes, since it is the corporation that did not pay the tax and it has a personality distinct from its directors. (C) Yes, since the directors officially and collectively performed acts that are imputable only to the corporation. (D) No, since the law makes directors of the corporation solidarily liable for gross negligence and bad faith in the discharge of their duties. (77) T is the registered trademark owner of "CROCOS" which he uses on his ready-to-wear clothes. Banking on the popularity of T's trade mark, B came up with his own "CROCOS" mark, which he then used for his "CROCOS" burgers. T now sues B for trademark infringement but B argues that his product is a burger, hence, there is no infringement. Is B correct? (A) No, since the owner of a well-known mark registered in the Philippines has rights that extends even to dissimilar kinds of goods. (B) Yes, since the right of the owner of a well-known mark registered in the Philippines does not extend to goods which are not of the same kind. (C) Yes, as B was in bad faith in coming up with his own "CROCOS" mark. (D) No, since unlike T, he did not register his own "CROCOS" mark for his product. (78) A, the proprietor of a fleet of ten taxicabs, decides to adopt, as his business name, "A Transport Co., Inc." May this be allowed? (A) No, it would be deceptive since he is a proprietor, not a corporation. (B) No, since "A" is a generic name, not suitable for registration. (C) Yes, since his line of business is public transportation. (D) Yes, since such name would give his business a corporate identity. (79) T delivers two refrigerators to the warehouse of W who then issues a negotiable receipt undertaking the delivery of the refrigerators to "T or bearer." T entrusted the receipt to B for safekeeping only. B negotiated it, however, to F who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators? (A) T, since he is the real owner of the refrigerators. (B) F, since he is a purchaser in good faith and for value. (C) B, since T entrusted the receipt to him. (D) W, since he has as a warehouseman a lien on the goods. (80) The Articles of Incorporation must be accompanied by a Treasurer's Affidavit certifying under oath, among others, that the total subscription paid is: (A) not less than P25,000.00. (B) not more than P5,000.00. (C) RIGHT ANSWER not less than P5,000.00. (D) not more than P25,000.00. (81) In a special meeting called for the purpose, 2/3 of the stockholders representing the outstanding capital stock in X. Co. authorized the company's Board of Directors to amend its By-laws. By majority vote, the Board then approved the amendment. Is this amendment valid?

(A) No since the stockholders cannot delegate their right to amend the By-laws to the Board. (B) Yes since the majority votes in the Board was sufficient to amend the By-laws. (C) No, because the voting in the Board should have been by majority of a quorum. (D) Yes since the votes of 2/3 of the stockholders and majority of the Board were secured. (82) A group of Malaysians wanted to invest in the Philippines insurance business. After negotiations, they agreed to organize "FIMA Insurance Corp." with a group of Filipino businessmen. FIMA would have a PhP50 Million paid up capital, PhP40 Million of which would come from the Filipino group. All corporate officers would be Filipinos and 8 out of its 10-member Board of Directors would be Filipinos. Can FIMA operate an insurance business in the Philippines? (A) No, since an insurance company must have at least PhP75 Million paid-up capital. (B) Yes, since there is substantial compliance with our nationalization laws respecting paid-up capital and Filipino dominated Board of Directors. (C) Yes, since FIMAs paid up capital more than meets the countrys nationalization laws. (D) No, since an insurance company should be 100% owned by Filipinos. (83) Under the Public Service Act, an administrative agency has the power to approve provisionally the rates of public utilities without a hearing in case of urgent public needs. The exercise of this power is (A) supervisory. (B) absolute. (C) discretionary. (D) mandatory. (84) X, creditor of Y, obtained a judgment in his favor in connection with Y's unpaid loan to him. The court's sheriff then levied on the goods that Y stored in T's warehouse, for which the latter issued a warehouse receipt. A month before the levy, however, Z bought the warehouse receipt for value. Who has a better right over the goods? (A) T, being the warehouseman with a lien on the goods (B) Z, being a purchaser for value of the warehouse receipt (C) X, being Ys judgment creditor (D) Y, being the owner of the goods (85) A promissory note states, on its face: "I, X, promise to pay Y the amount of Php 5,000.00 five days after completion of the on-going construction of my house. Signed, X." Is the note negotiable? (A) Yes, since it is payable at a fixed period after the occurrence of a specified event. (B) No, since it is payable at a fixed period after the occurrence of an event which may not happen. (C) Yes, since it is payable at a fixed period or determinable future time. (D) No, since it should be payable at a fixed period before the occurrence of a specified event. (86) P sold to M a pair of gecko (tuko) for Php50,000.00. M then issued a promissory note to P promising to pay the money within 90

days. Unknown to P and M, a law was passed a month before the sale that prohibits and declares void any agreement to sell gecko in the country. If X acquired the note in good faith and for value, may he enforce payment on it? (A) No, since the law declared void the contract on which the promissory note was founded. (B) No, since it was not X who bought the gecko. (C) Yes, since he is a holder in due course of a note which is distinct from the sale of gecko. (D) Yes, since he is a holder in due course and P and M were not aware of the law that prohibited the sale of gecko. (87) P authorized A to sign a bill of exchange in his (Ps) name. The bill reads: "Pay to B or order the sum of Php1 million. Signed, A (for and in behalf of P)." The bill was drawn on P. B indorsed the bill to C, C to D, and D to E. May E treat the bill as a promissory note? (A) No, because the instrument is payable to order and has been indorsed several times. (B) Yes, because the drawer and drawee are one and the same person. (C) No, because the instrument is a bill of exchange. (D) Yes, because A was only an agent of P. (88) Z wrote out an instrument that states: "Pay to X the amount of Php1 Million for collection only. Signed, Z." X indorsed it to his creditor, Y, to whom he owed Php1 million. Y now wants to collect and satisfy X's debt through the Php1 million on the check. May he validly do so? (A) Yes, since the indorsement to Y is for Php1 Million. (B) No, since Z is not a party to the loan between X and Y. (C) No, since X is merely an agent of Z, his only right being to collect. (D) Yes, since X owed Y Php1 Million. (89) X Shipping, Co., insured its vessel MV Don Teodoro for Php100 Million with ABC Insurance, Co. through T, an agent of X Shipping. During a voyage, the vessel accidentally caught fire and suffered damages estimated at Php80 Million. T personally informed ABC Insurance that X Shipping was abandoning the ship. Later, ABC insurance denied X Shippings claim for loss on the ground that a notice of abandonment through its agent was improper. Is ABC Insurance right? (A) Yes, since X Shipping should have ratified its agents action. (B) No, since T, as agent of X Shipping who procured the insurance, can also give notice of abandonment for his principal. (C) Yes, since only the agent of X Shipping relayed the fact of abandonment. (D) No, since in the first place, the damage was more than of the ship's value. (90) A law was passed disqualifying former members of Congress from sitting in the Board of Directors of government-owned or controlled corporations. Because of this, the Board of Directors of ABC Corp., a government-owned and controlled corporation, disqualified C, a former Congressman, from continuing to sit as one of its members. C objected, however, insisting that under the Corporation Code members of the board of directors of corporations may only be removed by vote of stockholders holding

2/3 of its outstanding capital stock in a regular or special meeting called for that purpose. Is C correct? (A) Yes, since the new law cannot be applied to members of the board of directors already elected prior to its passage. (B) No, since the disqualification takes effect by operation of law, it is sufficient that he was declared no longer a member of the board. (C) Yes, since the provisions of the Corporation Code applies as well to government-owned and controlled corporations. (D) No, since the board has the power to oust him even without the new law. (91) 002-38-0001 G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has sold all the rice. H meantime delivered the goods to W, a warehouseman, who issued a warehouse receipt. Without the knowledge of G and W, H negotiated the receipt to P who acquired it in good faith and for value. P then claimed the goods from W, who released them. After the rice was loaded on a ship bound for Manila, G invokes his right to stop the goods in transit due to his unpaid lien. Who has a better right to the rice? (A) RIGHT ANSWER P, since he has superior rights as a purchaser for value and in good faith. (B) P, regardless of whether or not he is a purchaser for value and in good faith. (C) G, since as an unpaid seller, he has the right of stoppage in transitu. (D) W, since it appears that the warehouse charges have not been paid. (92) In a signature by procuration, the principal is bound only in case the agent acted within the actual limits of his authority. The signature of the agent in such a case operates as notice that he has (A) a qualified authority to sign. (B) a limited authority to sign. (C) a special authority to sign. (D) full authority to sign. (93) In return for the 20 years of faithful service of X as a househelper to Y, the latter promised to pay Php100,000.00 to Xs heirs if he (X) dies in an accident by fire. X agreed. Is this an insurance contract? (A) Yes, since all the elements of an insurance contract are present. (B) Yes, since X services may be regarded as the consideration. (C) No, since Y actually made a conditional donation in Xs favor. (D) No, since it is in fact an innominate contract between X and Y. (94) A bill of exchange states on its face: "One (1) month after sight, pay to the order of Mr. R the amount of Php50,000.00, chargeable to the account of Mr. S. Signed, Mr. T." Mr. S, the drawee, accepted the bill upon presentment by writing on it the words "I shall pay Php30,000.00 three (3) months after sight." May he accept under such terms, which varies the command in the bill of exchange? (A) Yes, since a drawee accepts according to the tenor of his acceptance.

(B) No, since, once he accepts, a drawee is liable according to the tenor of the bill. (C) Yes, provided the drawer and payee agree to the acceptance. (D) No, since he is bound as drawee to accept the bill according to its tenor. (95) May the indorsee of a promissory note indorsed to him "for deposit" file a suit against the indorser? (A) Yes, as long as the indorser received value for the restrictive indorsement. (B) Yes, as long as the indorser received value for the conditional indorsement. (C) Yes, whether or not the indorser received value for the conditional indorsement. (D) Yes, whether or not the indorser received value for the restrictive indorsement. (96) X issued a check in favor of his creditor, Y. It reads: " Pay to Y the amount of Seven Thousand Hundred Pesos (Php700,000.00). Signed, X". What amount should be construed as true in such a case? (A) Php700,000.00. (B) Php700.00. (C) Php7,000.00. (D) Php700,100.00. (97) Shipowner X, in applying for a marine insurance policy from ABC, Co., stated that his vessel usually sails middle of August and with normally 100 tons of cargo. It turned out later that the vessel departed on the first week of September and with only 10 tons of cargo. Will this avoid the policy that was issued? (A) Yes, because there was breach of implied warranty. (B) No, because there was no intent to breach an implied warranty. (C) Yes, because it relates to a material representation. (D) No, because there was only representation of intention. (98) The Articles of Incorporation of ABC Transport Co., a public utility, provides for ten (10) members in its Board of Directors. What is the prescribed minimum number of Filipino citizens in its Board? (A) 10 (B) 6 (C) 7 (D) 5 (99) P authorized A to sign a negotiable instrument in his (Ps) name. It reads: "Pay to B or order the sum of Php1 million. Signed, A (for and in behalf of P)." The instrument shows that it was drawn on P. B then indorsed to C, C to D, and D to E. E then treated it as a bill of exchange. Is presentment for acceptance necessary in this case? (A) No, since the drawer and drawee are the same person. (B) No, since the bill is non-negotiable, the drawer and drawee being the same person. (C) Yes, since the bill is payable to order, presentment is required for acceptance.

(D) Yes, in order to hold all persons liable on the bill. (100) The corporate term of a stock corporation is that which is stated in its Articles of Incorporation. It may be extended or shortened by an amendment of the Articles when approved by majority of its Board of Directors and: (A) approved and ratified by at least 2/3 of all stockholders. (B) approved by at least 2/3 of the stockholders representing the outstanding capital stock. (C) ratified by at least 2/3 of all stockholders. (D) ratified by at least 2/3 of the stockholders representing the outstanding capital stock.

2011 Bar Examination Questionnaire for Civil Law

(1)When does a declaration of absence of a missing person take effect? (A) Immediately from the issuance of the declaration of absence. (B) 3 months after the publication of the declaration of absence. (C) 6 months after the publication of the declaration of absence. (D) 15 days from the issuance of the declaration of absence. (2) The authority that school administrators exercise over school children under their supervision, instruction, or custody is called (A) legal parental authority. (B) substitute parental authority. (C) ordinary parental authority. (D) special parental authority. (3) Can future inheritance be the subject of a contract of sale? (A) No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to public policy. (B) Yes, since the death of the decedent is certain to occur. (C) No, since the seller owns no inheritance while his predecessor lives. (D) Yes, but on the condition that the amount of the inheritance can only be ascertained after the obligations of the estate have been paid. (4) Upon the proposal of a third person, a new debtor substituted the original debtor without the latters consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation. What is the effect of the new debtors default upon the original debtor? (A) The original debtor is freed of liability since novation took place and this relieved him of his obligation. (B) The original debtor shall pay or perform the obligation with recourse to the new debtor. (C) The original debtor remains liable since he gave no consent to the substitution. (D) The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part. (5) Lennie bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her to economy on the ground that a Congressman had to be accommodated in the business class. Lennie suffered the discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta Airlines countered that, since her travel was governed by a contract between them, no quasi-delict could arise. Is the airline correct? (A) No, the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness, gross bad faith, and malice. (B) No, denying Lennie the comfort and amenities of the business class as provided in the ticket is a tortious act. (C) Yes, since the facts show a breach of contract, not a quasi-delict.

(D) Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between the parties. (6) Which of the following is an indispensable requirement in an action for "quieting of title" involving real property? The plaintiff must (A) be in actual possession of the property. (B) be the registered owner of the property. (C) have legal or equitable title to the property. (D) be the beneficial owner of the property. (7) X and Y were to marry in 3 months. Meantime, to express his affection, X donated a house and lot to Y, which donation X wrote in a letter to Y. Y wrote back, accepting the donation and took possession of the property. Before the wedding, however, Y suddenly died of heart attack. Can Ys heirs get the property? (A) No, since the marriage did not take place. (B) Yes, since all the requisites of a donation of an immovable are present. (C) No, since the donation and its acceptance are not in a public instrument. (D) Yes, since X freely donated the property to Y who became its owner. (8) Rene and Lily got married after a brief courtship. After one month, Lily discovered that while Rene presented himself as a macho man he was actually gay. He would not go to bed with her. He kept obscene magazines of nude men and always sought the company of handsome boys. What legal remedy does Lily have? (A) She can file an action for annulment of marriage on ground of fraud. (B) She can seek a declaration of nullity of the marriage based on Renes psychological incapacity. (C) She can go abroad and file for divorce in a country that can grant it. (D) She has none since she had the opportunity to examine the goods and freely entered into the marriage. (9) Lucio executed a simple deed of donation of P50 million on time deposit with a bank in favor of A, B, C, D, and E, without indicating the share of each donee. All the donees accepted the donation in writing. A, one of the donees, died. Will B, C, D, and E get As share in the money? (A) Yes, accretion will automatically apply to the jointdonees in equal shares. (B) Yes, since the donors intention is to give the whole of P50 million to the jointdonees in equal shares. (C) No, A"s share will revert to the donor because accretion applies only if the joint-donees are spouses. (D) No, As share goes to his heirs since the donation did not provide for reversion to donor. (10) Raul, Ester, and Rufus inherited a 10-hectare land from their father. Before the land could be partitioned, however, Raul sold his hereditary right to Raffy, a stranger to the family, for P5 million. Do Ester and Rufus have a remedy for keeping the land within their family? (A) Yes, they may be subrogated to Raffys right by reimbursing to him within the required time what he paid Raul. (B) Yes, they may be subrogated to Raffys right provided they buy him out before he registers the sale.

(C) No, they can be subrogated to Raffys right only with his conformity. (D) No, since there was no impediment to Raul selling his inheritance to a stranger. (11) When one exercises a right recognized by law, knowing that he thereby causes an injustice to another, the latter is entitled to recover damages. This is known as the principle of (A) res ipsa loquitur. (B) damnum absque injuria. (C) vicarious liability. (D) abuse of rights. (12) Which of the following is NOT a basis for rendering a disinheritance defective or imperfect? (A) Its cause comes from the guilt of a spouse in a legal separation case, the innocent-spouse having died. (B) The truth of its cause is denied and not sufficiently proved by evidence. (C) Its cause is not authorized by the law. (D) Its cause is not specified. (13) Manuel came to Manila and married Marianne. Unknown to Marianne, Manuel had been previously convicted in Palawan of theft and served time for it. After Marianne learned of his previous conviction, she stopped living with him. Can Marianne seek the annulment of the marriage based on Manuels nondisclosure of his previous crime? (A) No, since the assumption is that marriage forgives all past wrongs. (B) Yes, since the non-disclosure of that crime is the equivalent of fraud, which is a ground for annulment. (C) No, in case of doubt, the law must be construed to preserve the institution of marriage. (D) No, since Manuel already served the penalty for his crime. (14) Arthur and Helen, both Filipinos, got married and had 2 children. Arthur later worked in Rome where he acquired Italian citizenship. He got a divorce from Helen in Rome but, on returning to the Philippines, he realized his mistake, asked forgiveness of his wife, and resumed living with her. They had 2 more children. What is the status of their 4 children? (A) The children born before the divorce are legitimate but those born after it are not since Arthur got the divorce when he had ceased to be a Filipino. (B) The divorce rendered illegitimate the children born before it since the marriage that begot them had been nullified. (C) The children born before and after the divorce are all legitimate since Philippine law does not recognize divorce. (D) All the children are legitimate since they were born of the same father and mother. (15) Who can make a donation? (A) All persons who can enter into contracts and dispose of their property. (B) All persons who are of legal age and suffer from no civil interdiction. (C) All persons who can make a last will and testament.

(D) All persons, whether natural or artificial, who own property. (16) The liability of the partners, including industrial partners for partnership contracts entered into in its name and for its account, when all partnership assets have been exhausted is (A) Pro-rata. (B) Joint. (C) Solidary. (D) Voluntary. (17) When can a missing person who left someone to administer his property be declared an absentee by the court? When he has been missing for (A) 2 years from the receipt of the last news about him. (B) 7 years from the receipt of the last news about him. (C) 10 years from the receipt of the last news about him. (D) 5 years from the receipt of the last news about him. (18) Which of the following claims against the debtor enjoys preference over the others with respect to his specific immovable property and real rights? (A) Unpaid price of real property sold, upon the immovable property. (B) Mortgage credits recorded in the registry of property, upon the mortgaged real estate. (C) Taxes due, upon the land or building. (D) Expenses for the preservation and improvement of property, when the law authorizes reimbursement, upon the preserved or improved immovable. (19) When bilateral contracts are vitiated with vices of consent, they are rendered (A) rescissible. (B) void. (C) unenforceable. (D) voidable. (20) An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling the same to a buyer according to the instructions given the agent. The agent executed the deed of absolute sale on behalf of his principal two days after the principal died, an event that neither the agent nor the buyer knew at the time of the sale. What is the standing of the sale? (A) Voidable. (B) Valid. (C) Void. (D) Unenforceable. (21) Spouses A and B leased a piece of land belonging to B's parents for 25 years. The spouses built their house on it worth P300,000.00. Subsequently, in a case that C filed against A and B, the court found the latter liable to C for P200,000.00. When the sheriff was attaching their house for the satisfaction of the judgment, A and B claimed that it was exempt from execution, being a family home. Is this claim correct? (A) Yes, because while Bs parents own the land, they agreed to have their daughter build her family home on it. (B) No, because there is no judicial declaration that it is a family home.

(C) No, since the land does not belong to A and B, it cannot qualify as a family home. (D) Yes, because the A and Bs family actually lives in that house. (22) Solomon sold his coconut plantation to Aragon, Inc. for P100 million, payable in installments of P10 million per month with 6% interest per annum. Solomon married Lorna after 5 months and they chose conjugal partnership of gains to govern their property relations. When they married, Aragon had an unpaid balance of P50 million plus interest in Solomons favor. To whom will Aragons monthly payments go after the marriage? (A) The principal shall go to the conjugal partnership but the interests to Solomon. (B) Both principal and interests shall go to Solomon since they are his exclusive properties. (C) Both principal and interests shall go to the conjugal partnership since these become due after the marriage. (D) The principal shall go to Solomon but the interests to the conjugal partnership. (23) X and Y, although not suffering from any impediment, cohabited as husband and wife without the benefit of marriage. Following the birth of their child, the couple got married. A year after, however, the court annulled the marriage and issued a decree of annulment. What is the present status of the child? (A) Legitimated. (B) Illegitimate. (C) Natural child. (D) Legitimate. (24) When A and B married, they chose conjugal partnership of gains to govern their property relations. After 3 years, B succeeded in getting her marriage to A annulled on ground of the latters psychological incapacity. What liquidation procedure will they follow in disposing of their assets? (A) They will follow the rule governing the liquidation of a conjugal partnership of gains where the party who acted in bad faith forfeits his share in the net profits. (B) Since the marriage has been declared void, the rule for liquidation of absolute community of property shall be followed. (C) The liquidation of a co-ownership applies since the annulment brought their property relation under the chapter on property regimes without marriage. (D) The law on liquidation of partnerships applies. (25) X and Y agreed verbally before their marriage (a) on the paternity of the illegitimate child of Y and (b) on the economic regime that will govern X and Ys property relations. Is the verbal agreement valid? (A) No, because a marriage settlement to be valid should be in writing. (B) Yes, since ante-nuptial agreements need not be in writing. (C) No, because a marriage settlement cannot include an agreement on the paternity of an illegitimate child. (D) Yes, since even if it is not a valid marriage settlement, it is a valid verbal contract. (26) Spouses X and Y have a minor daughter, Z, who needs support for her education. Both X and Y, who are financially distressed,

could not give the needed support to Z. As it happens, Zs other relatives are financially capable of giving that support. From whom may Z first rightfully demand support? From her (A) grandfather. (B) brother. (C) uncle. (D) first cousin. (27) Fidel, a Filipino with fair complexion, married Gloria. Before the marriage, Gloria confessed to Fidel that she was two-month pregnant with the child of a black African who had left the country for good. When the child was born, Fidel could not accept it being too black in complexion. What is the status of the child? (A) Illegitimate, because Gloria confessed that the child is not Fidels. (B) Illegitimate, because by the color of its skin, the child could not possibly be that of Fidel. (C) Legitimate, because the child was born within a valid marriage. (D) Legitimate, because Fidel agreed to treat the child as his own after Gloria told him who the father was. (28) The husbands acts of forcibly ejecting his wife without just cause from the conjugal dwelling and refusing to take her back constitutes (A) desertion. (B) recrimination. (C) constructive abandonment. (D) de facto separation. (29) In his will, the testator designated X as a legatee to receive P2 million for the purpose of buying an ambulance that the residents of his Barangay can use. What kind of institution is this? (A) a fideicomissary institution. (B) a modal institution. (C) a conditional institution. (D) a collective institution. (30) X insured himself for P5 million, designating Y, his wife, as his sole beneficiary. The designation was irrevocable. A few years later, X had their marriage annulled in court on the ground that Y had an existing prior marriage. X subsequently died, Is Y entitled to the insurance benefits? (A) Yes, since the insurance was not dependent on the marriage. (B) Yes, since her designation as beneficiary was irrevocable. (C) No, Xs designation of Y is revoked by operation of law upon the annulment of their marriage based on Ys fault. (D) Yes, since without judicial revocation, Xs designation of Y remains valid and binding. (31) May a spouse freely donate communal or conjugal property without the consent of the other? (A) Absolutely not, since the spouses co-own such property. (B) Yes, for properties that the family may spare, regardless of value. (C) Yes, provided the donation is moderate and intended for charity or family rejoicing.

(D) Yes, in a donation mortis causa that the donor may still revoke in his lifetime. (32) The decedent died intestate leaving an estate of P10 million. He left the following heirs: a) Marlon, a legitimate child and b) Cecilia, the legal spouse. Divide the estate. (A) Marlon gets 1/4 and Cecilia gets 3/4. (B) Marlon gets 2/3 and Cecilia 1/3. (C) Marlon gets 1/2 and Cecilia gets 1/2. (D) Marlon gets 3/4 and Cecilia 1/4. (33) Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations arising from the contract are not transmissible by their nature, by stipulation, or by provision of law. In the latter case, the assigns or the heirs are not bound by the contracts. This is known as the principle of (A) Relativity of contracts. (B) Freedom to stipulate. (C) Mutuality of contracts. (D) Obligatory force of contracts. (34) A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the rights and obligations of the buyer? (A) He can accept all 6,000 apples and pay the seller at P20 per apple. (B) He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples. (C) He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them anyway. (D) He can cancel the whole transaction since the seller violated the terms of their agreement. (35) Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties could not agree which of five lots he owned Lino undertook to sell to Ramon. What is the standing of the contract? (A) Unenforceable. (B) Voidable. (C) Rescissible. (D) Void. (36) Knowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about it. In any event, the deed of sale expressly stipulated that X was not liable for hidden defects. Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus damages? (A) Yes. X is liable whether or not he was aware of the hidden defect. (B) Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y. (C) No, because Y is in estoppel, having changed engine without prior demand. (D) No, because Y waived the warranty against hidden defects. (37) Acme Cannery produced sardines in cans known as "Sards." Mylene bought a can of Sards from a store, ate it, and suffered from poisoning caused by a noxious substance found in the sardines. Mylene filed a case for damages against Acme. Which of the following defenses will hold?

(A) The expiry date of the "Sards" was clearly printed on its can, still the store sold and Mylene bought it. (B) Mylene must have detected the noxious substance in the sardines by smell, yet she still ate it. (C) Acme had no transaction with Mylene; she bought the "Sards" from a store, not directly from Acme. (D) Acme enjoys the presumption of safeness of its canning procedure and Mylene has not overcome such presumption. (38) Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the pain of the legacy of P100 Million in her favor becoming a nullity. But a year after Fernandos death, Marina was so overwhelmed with love that she married another man. Is she entitled to the legacy, the amount of which is well within the capacity of the disposable free portion of Fernandos estate? (A) Yes, since the prohibition against remarrying is absolute, it is deemed not written. (B) Yes, because the prohibition is inhuman and oppressive and violates Marinas rights as a free woman. (C) No, because the nullity of the prohibition also nullifies the legacy. (D) No, since such prohibition is authorized by law and is not repressive; she could remarry but must give up the money. (39) X, the owner, constituted a 10-year usufruct on his land as well as on the building standing on it in Ys favor. After flood totally destroyed the building 5 years later, X told Y that an act of God terminated the usufruct and that he should vacate the land. Is X, the owner of the land, correct? (A) No, since the building was destroyed through no fault of Y. (B) No, since Y still has the right to use the land and the materials left on it. (C) Yes, since Y cannot use the land without the building. (D) Yes, since the destruction of the building without the Xs fault terminated the usufruct. (40) In gratitude, the grooms parents made a donation of a property in writing to the brides parents shortly before their childrens wedding. The donation was accepted. What is the nature of the donation? (A) It is an ordinary donation since it was not given to the bride or groom. (B) It is donation propter nuptias since it was given with the marriage in mind. (C) It is an indirect donation propter nuptias since the bride would eventually inherit the property from her parents. (D) It is a remunatory donation. (41) X and Y, both Filipinos, were married and resided in Spain although they intend to return to the Philippines at some future time. They have not executed any marriage settlements. What law governs their property relations? (A) They may choose between Spanish law and Philippine law. (B) Philippine law since they are both Filipinos. (C) No regime of property relations will apply to them.

(D) Spanish law since they live in Spain. (42) Birth determines personality. Death extinguishes it. Under what circumstances may the personality of a deceased person continue to exist? (A) In case of re-appearance of a missing person presumed dead. (B) In protecting the works of a deceased under intellectual property laws. (C) In case of declaration of presumptive death of a missing spouse. (D) In the settlement of the estate of a deceased person. (43) Six tenants sued X, the landowner, for willfully denying them water for their farms, which water happened to flow from land under Xs control, his intention being to force them to leave his properties. Is X liable for his act and why? (A) No, because the tenants must be content with waiting for rainfall for their farms. (B) No, since X owns both the land and the water. (C) Yes, because the tenants farms have the natural right of access to water wherever it is located. (D) Yes, since X willfully caused injury to his tenants contrary to morals, good customs or public policy. (44) Illegitimate brothers and sisters, whether of full or half-blood, are bound to support each other, EXCEPT when (A) the brother or sister who needs support lives in another place. (B) such brothers and sisters are not recognized by their father. (C) the brother or sister in need stops schooling without valid reason. (D) the need for support of a brother or sister, already of age, is due to the latter's fault. (45) Virgilio owned a bare and simple swimming pool in his garden. MB, a 7-year old child, surreptitiously entered the garden and merrily romped around the ledges of the pool. He accidentally tripped, fell into the pool, and drowned. MBs parents sued Virgilio for damages arising from their childs death, premised on the principle of "attractive nuisance". Is Virgilio liable for the death of MB? (A) No, the child was 7 years old and knew the dangers that the pool offered. (B) Yes, being an attractive nuisance, Virgilio had the duty to prevent children from coming near it. (C) No, since the pool was bare and had no enticing or alluring gadgets, floats, or devices in it that would attract a 7-year old child. (D) Yes, since Virgilio did not cover the swimming pool while not in use to prevent children from falling into it. (46) The term of a 5-year lease contract between X the lessor and Y the lessee, where rents were paid from month to month, came to an end. Still, Y continued using the property with Xs consent. In such a case, it is understood that they impliedly renewed the lease (A) from month to month under the same conditions as to the rest. (B) under the same terms and conditions as before.

(C) under the same terms except the rent which they or the court must fix. (D) for only a year, with the rent raised by 10% pursuant to the rental control law. (47) Rex, a philanthropist, donated a valuable lot to the municipality on the condition that it will build a public school on such lot within 2 years from its acceptance of the donation. The municipality properly accepted the donation but did not yet build the public school after 2 years. Can Rex revoke the donation? (A) Yes, since the donation is subject to a resolutory condition which was not fulfilled. (B) No, but Rex is entitled to recover the value of the land from the municipality. (C) No, the transfer of ownership has been completed. (D) Yes, the donation is not deemed made until the suspensive condition has been fulfilled. (48) Illegitimate children, those not recognized by their biological fathers, shall use the surname of their (A) biological father subject to no condition. (B) mother or biological father, at the mothers discretion. (C) mother. (D) biological father unless he judicially opposes it. (49) Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend Boyong paid the whole loan. Since Asiong benefited from the payment, can Boyong compel the bank to subrogate him in its right as mortgagee of Asiong's land? (A) No, but the bank can foreclose and pay Boyong back. (B) No, since Boyong paid for Asiongs loan without his approval. (C) Yes, since a change of creditor took place by novation with the banks consent. (D) Yes, since it is but right that Boyong be able to get back his money and, if not, to foreclose the mortgage in the manner of the bank. (50) Congress passed a law imposing taxes on income earned out of a particular activity that was not previously taxed. The law, however, taxed incomes already earned within the fiscal year when the law took effect. Is the law valid? (A) No, because laws are intended to be prospective, not retroactive. (B) No, the law is arbitrary in that it taxes income that has already been spent. (C) Yes, since tax laws are the lifeblood of the nation. (D) Yes, tax laws are an exception; they can be given retroactive effect. (51) Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors. When the loan matured, Rodrigo wrote a letter to Rudolf, demanding payment of the loan directly to him. Before Rudolf could comply, Fernando went to see him personally to collect and he paid him. Did Rudolf make a valid payment? (A) No, since Rudolf should have split the payment between Rodrigo and Fernando. (B) No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf. (C) Yes, since the payment covers the whole obligation.

(D) Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation. (52) What happens to the property regimes that were subsisting under the New Civil Code when the Family Code took effect? (A) The original property regimes are immutable and remain effective. (B) Those enjoying specific regimes under the New Civil Code may adopt the regime of absolute community of property under the Family Code. (C) Those that married under the New Civil Code but did not choose any of its regimes shall now be governed by the regime of absolute community of property. (D) They are superseded by the Family Code which has retroactive effect. (53) The testator executed a will following the formalities required by the law on succession without designating any heir. The only testamentary disposition in the will is the recognition of the testator's illegitimate child with a popular actress. Is the will valid? (A) Yes, since in recognizing his illegitimate child, the testator has made him his heir. (B) No, because the non-designation of heirs defeats the purpose of a will. (C) No, the will comes to life only when the proper heirs are instituted. (D) Yes, the recognition of an illegitimate heir is an ample reason for a will. (54) A left B, his wife, in the Philippines to work in Egypt but died in that country after a years continuous stay. Two months after As death, B gave birth to a child, claiming it is As child. Who can assail the legitimacy of the child? (A) As other heirs apart from B. (B) The State which has interest in the welfare of overseas contract workers. (C) Any one who is outraged by Bs claim. (D) No one since A died. (55) QR and TS who had a marriage license requested a newly appointed Judge in Manila to marry them on the beach of Boracay. Since the Judge maintained Boracay as his residence, he agreed. The sponsors were all public officials. What is the status of the marriage. (A) Valid, since the improper venue is merely an irregularity; all the elements of a valid marriage are present. (B) Void, because the couple did not get local permit for a beach wedding. (C) Voidable, because the Judge acted beyond his territorial jurisdiction and is administratively liable for the same. (D) Void, because the Judge did not solemnize the marriage within the premises of his court. (56) X and Y, Filipinos, got married in Los Angeles, USA, using a marriage license issued by the Philippine consul in Los Angeles, acting as Civil Registrar. X and Y did not know that they were first cousins because their mothers, who were sisters, were separated when they were quite young. Since X did not want to continue with the relation when he heard of it, he left Y, came to the Philippines and married Z. Can X be held liable for bigamy?

(A) No since Xs marriage to Y is void ab initio or did not exist. (B) No since X acted in good faith, conscious that public policy did not approve of marriage between first cousins. (C) Yes since he married Z without first securing a judicial declaration of nullity of his marriage to Y. (D) Yes since his first marriage to Y in Los Angeles is valid. (57) Allan bought Billys property through Carlos, an agent empowered with a special power of attorney (SPA) to sell the same. When Allan was ready to pay as scheduled, Billy called, directing Allan to pay directly to him. On learning of this, Carlos, Billy's agent, told Allan to pay through him as his SPA provided and to protect his commission. Faced with two claimants, Allan consigned the payment in court. Billy protested, contending that the consignation is ineffective since no tender of payment was made to him. Is he correct? (A) No, since consignation without tender of payment is allowed in the face of the conflicting claims on the plaintiff. (B) Yes, as owner of the property sold, Billy can demand payment directly to himself. (C) Yes, since Allan made no announcement of the tender. (D) Yes, a tender of payment is required for a valid consignation. (58) X sold Y 100 sacks of rice that Y was to pick up from Xs rice mill on a particular date. Y did not, however, appear on the agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial notice to Y. Is the rescission valid? (A) Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily deteriorate. (B) No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the goods. (C) No, since there was no express agreement regarding automatic rescission. (D) No, the seller should first determine that Y was not justified in failing to appear. (59) The wife filed a case of legal separation against her husband on the ground of sexual infidelity without previously exerting earnest efforts to come to a compromise with him. The judge dismissed the case for having been filed without complying with a condition precedent. Is the dismissal proper? (A) No, efforts at a compromise will only deepen the wifes anguish. (B) No, since legal separation like validity of marriage is not subject to compromise agreement for purposes of filing. (C) Yes, to avoid a family feud that is hurtful to everyone. (D) Yes, since the dispute could have been settled with the parties agreeing to legal separation. (60) An Australian living in the Philippines acquired shares of stock worth P10 million in food manufacturing companies. He died in Manila, leaving a legal wife and a child in Australia and a live-in partner with whom he had two children in Manila. He also left a will, done according to Philippine laws, leaving all his properties to his live-in partner and their children. What law will govern the validity of the disposition in the will?

(A) Australia law since his legal wife and legitimate child are Australians and domiciled in Australia. (B) Australian law since the intrinsic validity of the provisions of a will is governed by the decedents national law. (C) Philippine law since the decedent died in Manila and he executed his will according to such law. (D) Philippine law since the decedents properties are in the Philippines. (61) X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling to do so, Xs heirs filed an action for specific performance against Y. Will their action prosper? (A) No, after more than 6 years, the action to enforce the verbal agreement has already elapsed. (B) No, since the sale cannot under the Statute of Frauds be enforced. (C) Yes, since X bought the land and paid Y for it. (D) Yes, after full payment, the action became imprescriptible. (62) A court declared Ricardo, an old bachelor, an absentee and appointed Cicero administrator of his property. After a year, it was discovered that Ricardo had died abroad. What is the effect of the fact of his death on the administration of his property? (A) With Ricardo no longer an absentee but a deceased person, Cicero will cease to be administrator of his properties. (B) The administration shall be given by the court having jurisdiction over the intestate proceedings to a new administrator whom it will appoint. (C) Cicero automatically becomes administrator of Ricardos estate until judicially relieved. (D) Ciceros alienations of Ricardo's property will be set aside. (63) Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted to question the validity of their marriage two years after the intimidation ceased, Judy decided in the meantime to freely cohabit with Baldo. After more than 5 years following their wedding, Judy wants to file a case for annulment of marriage against Baldo on ground of lack of consent. Will her action prosper? (A) Yes, the action for annulment is imprescriptible. (B) No, since the marriage was merely voidable and Judy ratified it by freely cohabiting with Baldo after the force and intimidation had ceased . (C) No, since the action prescribed 5 years from the date of the celebration of the marriage. (D) Yes, because the marriage was celebrated without Judy's consent freely given. (64) Is the wife who leaves her husband without just cause entitled to support? (A) No, because the wife must always be submissive and respectful to the husband. (B) Yes. The marriage not having been dissolved, the husband continues to have an obligation to support his wife.

(C) No, because in leaving the conjugal home without just cause, she forfeits her right to support. (D) Yes, since the right to receive support is not subject to any condition. (65) In the order of intestate succession where the decedent is legitimate, who is the last intestate heirs or heir who will inherit if all heirs in the higher level are disqualified or unable to inherit? (A) Nephews and nieces. (B) Brothers and sisters. (C) State. (D) Other collateral relatives up to the 5th degree of consanguinity. (66) Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary? (A) Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled. (B) Solidary or joint upon the discretion of Sam. (C) Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat. (D) Joint since the conversion of their liability to one of indemnity for damages made it joint. (67) Joanne married James, a person with no known relatives. Through James' hard work, he and his wife Joane prospered. When James died, his estate alone amounted to P100 million. If, in his will, James designates Joanne as his only heir, what will be the free portion of his estate. (A) Joanne gets all; estate has no free portion left. (B) Joanne gets 1/2; the other half is free portion. (C) Joanne gets 1/3; the remaining 2/3 is free portion. (D) Joanne gets 1/4; the remaining 3/4 is free portion. (68) A warranty inherent in a contract of sale, whether or not mentioned in it, is known as the (A) warranty on quality. (B) warranty against hidden defects. (C) warranty against eviction. (D) warranty in merchantability. (69) The doctrine of stare decisis prescribes adherence to precedents in order to promote the stability of the law. But the doctrine can be abandoned (A) When adherence to it would result in the Governments loss of its case. (B) When the application of the doctrine would cause great prejudice to a foreign national. (C) When necessary to promote the passage of a new law. (D) When the precedent has ceased to be beneficial and useful. (70) Ric and Josie, Filipinos, have been sweethearts for 5 years. While working in a European country where the execution of joint wills are allowed, the two of them executed a joint holographic will where they named each other as sole heir of the other in case

either of them dies. Unfortunately, Ric died a year later. Can Josie have the joint will successfully probated in the Philippines? (A) Yes, in the highest interest of comity of nations and to honor the wishes of the deceased. (B) No, since Philippine law prohibits the execution of joint wills and such law is binding on Ric and Josie even abroad. (C) Yes, since they executed their joint will out of mutual love and care, values that the generally accepted principles of international law accepts. (D) Yes, since it is valid in the country where it was executed, applying the principle of "lex loci celebrationis." (71) ML inherited from his father P5 million in legitime but he waived it in a public instrument in favor of his sister QY who accepted the waiver in writing. But as it happened, ML borrowed P6 million from PF before the waiver. PF objected to the waiver and filed an action for its rescission on the ground that he had the right to MLs P5 million legitime as partial settlement of what ML owed him since ML has proved to be insolvent. Does PF, as creditor, have the right to rescind the waiver? (A) No, because the waiver in favor of his sister QY amounts to a donation and she already accepted it. (B) Yes, because the waiver is prejudicial to the interest of a third person whose interest is recognized by law. (C) No, PF must wait for ML to become solvent and, thereafter, sue him for the unpaid loan. (D) Yes, because a legitime cannot be waived in favor of a specific heir; it must be divided among all the other heirs. (72) While engaged to be married, Arnold and Josephine agreed in a public instrument to adopt out the economic regime of absolute community of property. Arnold acknowledged in the same instrument that Josephines daughter Mary, is his illegitimate child. But Josephine died before the marriage could take place. Does the marriage settlement have any significance? (A) None, since the instrument containing the marriage settlement is essentially void for containing an unrelated matter. (B) Yes, insofar as Arnold acknowledged Mary as his illegitimate child. (C) None, since the marriage did not take place. (D) Yes, if they acquired properties while living together as husband and wife. (73) Joseph, a 17-year old Filipino, married Jenny, a 21-year old American in Illinois, USA, where the marriage was valid. Their parents gave full consent to the marriage of their children. After three years, Joseph filed a petition in the USA to promptly divorce Jenny and this was granted. When Joseph turned 25 years, he returned to the Philippines and married Leonora. What is the status of this second marriage? (A) Void, because he did not cause the judicial issuance of declaration of the nullity of his first marriage to Jenny before marrying Leonora. (B) Valid, because Joseph's marriage to Jenny is void, he being only 17 years of age when he married her. (C) Valid, because his marriage to Leonora has all the elements of a valid marriage. (D) Void, because Joseph is still considered married to Jenny since the Philippines does not recognize divorce.

(74) T died intestate, leaving an estate of P9,000,000. He left as heirs three legitimate children, namely, A, B, and C. A has two children, D and E. Before he died, A irrevocably repudiated his inheritance from T in a public instrument filed with the court. How much, if any, will D and E, as As children, get from Ts estate? (A) Each of D and E will get P1,500,000 by right of representation since their father repudiated his inheritance. (B) Each of D and E will get P2,225,000 because they will inherit from the estate equally with B and C. (C) D and E will get none because of the repudiation; "B" and "C" will get As share by right of accretion. (D) Each of D and E will get P2,000,000 because the law gives them some advantage due to the demise of "A". (75) No decree of legal separation can be issued (A) unless the childrens welfare is attended to first. (B) without prior efforts at reconciliation shown to be futile. (C) unless the court first directs mediation of the parties. (D) without prior investigation conducted by a public prosecutor. (76) X, who was abroad, phoned his brother, Y, authorizing him to sell Xs parcel of land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving payment. What is the status of the sale? (A) Valid, since a notarized deed of absolute sale covered the transaction and full payment was made. (B) Void, since X should have authorized agent Y in writing to sell the land. (C) Valid, since Y was truly his brother Xs agent and entrusted with the title needed to effect the sale. (D) Valid, since the buyer could file an action to compel X to execute a deed of sale. (77) In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in the vendee a retro subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period. This is known as (A) equitable mortgage. (B) conventional redemption. (C) legal redemption. (D) equity of redemption. (78) A natural obligation under the New Civil Code of the Philippines is one which (A) the obligor has a moral obligation to do, otherwise entitling the obligee to damages. (B) refers to an obligation in writing to do or not to do. (C) the obligee may enforce through the court if violated by the obligor. (D) cannot be judicially enforced but authorizes the obligee to retain the obligors payment or performance. (79) The husband assumed sole administration of the familys mango plantation since his wife worked abroad. Subsequently, without his wifes knowledge, the husband entered into an antichretic transaction with a company, giving it possession and management of the plantation with power to harvest and sell the

fruits and to apply the proceeds to the payment of a loan he got. What is the standing of the contract? (A) It is void in the absence of the wifes consent. (B) It is void absent an authorization from the court. (C) The transaction is void and can neither be ratified by the wife nor authorized by the court. (D) It is considered a continuing offer by the parties, perfected only upon the wifes acceptance or the courts authorization. (80) When the donor gives donations without reserving sufficient funds for his support or for the support of his dependents, his donations are (A) Rescissible, since it results in economic lesion of more than 25% of the value of his properties. (B) Voidable, since his consent to the donation is vitiated by mindless kindness. (C) Void, since it amounts to wanton expenditure beyond his means. (D) Reducible to the extent that the donations impaired the support due to himself and his dependents. (81) Anne owed Bessy P1 million due on October 1, 2011 but failed to pay her on due date. Bessy sent a demand letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt of the letter, Anne personally offered to pay Bessy in manager's check but the latter refused to accept the same. The 5 days lapsed. May Annes obligation be considered extinguished? (A) Yes, since Bessys refusal of the managers check, which is presumed funded, amounts to a satisfaction of the obligation. (B) No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court. (C) Yes, since Anne tendered payment of the full amount due. (D) No, since a managers check is not considered legal tender in the Philippines. (82) The residents of a subdivision have been using an open strip of land as passage to the highway for over 30 years. The owner of that land decided, however, to close it in preparation for building his house on it. The residents protested, claiming that they became owners of the land through acquisitive prescription, having been in possession of the same in the concept of owners, publicly, peacefully, and continuously for more than 30 years. Is this claim correct? (A) No, the residents have not been in continuous possession of the land since they merely passed through it in going to the highway. (B) No, the owner did not abandon his right to the property; he merely tolerated his neighbors use of it for passage. (C) Yes, residents of the subdivision have become owners by acquisitive prescription. (D) Yes, community ownership by prescription prevails over private claims. (83) The owner of a thing cannot use it in a way that will injure the right of a third person. Thus, every building or land is subject to the easement which prohibits its proprietor or possessor from

committing nuisance like noise, jarring, offensive odor, and smoke. This principle is known as (A) Jus vindicandi. (B) Sic utere tuo ut alienum non laedas. (C) Jus dispondendi. (D) Jus abutendi. (84) Janice and Jennifer are sisters. Janice sued Jennifer and Laura, Jennifers business partner for recovery of property with damages. The complaint did not allege that Janice exerted earnest efforts to come to a compromise with the defendants and that such efforts failed. The judge dismissed the complaint outright for failure to comply with a condition precedent. Is the dismissal in order? (A) No, since Laura is a stranger to the sisters, Janice has no moral obligation to settle with her. (B) Yes, since court should promote amicable settlement among relatives. (C) Yes, since members of the same family, as parties to the suit, are required to exert earnest efforts to settle their disputes before coming to court. (D) No, the family council, which would ordinarily mediate the dispute, has been eliminated under the Family Code. (85) X borrowed money from a bank, secured by a mortgage on the land of Y, his close friend. When the loan matured, Y offered to pay the bank but it refused since Y was not the borrower. Is the banks action correct? (A) Yes, since X, the true borrower, did not give his consent to Ys offer to pay. (B) No, since anybody can discharge Xs obligation to his benefit. (C) No, since Y, the owner of the collateral, has an interest in the payment of the obligation. (D) Yes, since it was X who has an obligation to the bank. (86) The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the sale of the mortgaged property or confirmation of the sale by the court, is known as (A) accion publiciana. (B) equity of redemption. (C) pacto de retro. (D) right of redemption. (87) When does the regime of conjugal partnership of gains begin to exist? (A) At the moment the parties take and declare each other as husband and wife before officiating officer. (B) At the time the spouses acquire properties through joint efforts. (C) On the date the future spouses executed their marriage settlements because this is the starting point of their marital relationship. (D) On the date agreed upon by the future spouses in their marriage settlements since their agreement is the law between them. (88) Josie, 18, married Dante, 25, without her parents knowledge and consent, and lived with him. After a year, Josie returned to her parents home, complained of the unbearable battering she was

getting from Dante, and expressed a desire to have her marriage with him annulled. Who may bring the action? (A) Dante. (B) Her parents. (C) Josie herself. (D) The State. (89) X, a married man, cohabited with Y, an unmarried woman. Their relation bore them BB, a baby boy. Subsequently, after X became a widower, he married Y. Was BB legitimated by that marriage? (A) Yes, since his parents are now lawfully married. (B) Yes, since he is an innocent party and the marriage rectified the wrong done him. (C) No, since once illegitimate, a child shall always remain illegitimate. (D) No, since his parents were not qualified to marry each other when he was conceived. (90) The presence of a vice of consent vitiates the consent of a party in a contract and this renders the contract (A) Rescissible. (B) Unenforceable. (C) Voidable. (D) Void. (91) Can common-law spouses donate properties of substantial value to one another? (A) No, they are only allowed to give moderate gifts to each other during family rejoicing. (B) No, they cannot give anything of value to each other to prevent placing their legitimate relatives at a disadvantage. (C) Yes, unlike the case of legally married spouses, such donations are not prohibited. (D) Yes, as long as they leave sufficient property for themselves and for their dependents. (92) X owed Y P1.5 million. In his will, X gave Y legacy of P1 million but the will provided that this legacy is to be set off against the P1.5 million X owed Y. After the set off, X still owed Y P500,000. Can Y still collect this amount? (A) Yes, because the designation of Y as legatee created a new and separate juridical relationship between them, that of testator-legatee. (B) It depends upon the discretion of the probate court if a claim is filed in the testate proceedings. (C) No, because the intention of the testator in giving the legacy is to abrogate his entire obligation to Y. (D) No, because X had no instruction in his will to deliver more than the legacy of P1 million to Y. (93) Josie owned a lot worth P5 million prior to her marriage to Rey. Subsequently, their conjugal partnership spent P3 million for the construction of a house on the lot. The construction resulted in an increase in the value of the house and lot to P9 million. Who owns the house and the lot? (A) Josie and the conjugal partnership of gains will own both on a 50-50 basis.

(B) Josie will own both since the value of the house and the increase in the propertys value is less than her lots value; but she is to reimburse conjugal partnership expenses. (C) Josie still owns the lot, it being her exclusive property, but the house belongs to the conjugal partnership. (D) The house and lot shall both belong to the conjugal partnership, with Josie entitled to reimbursement for the value of the lot. (94) An action for reconveyance of a registered piece of land may be brought against the owner appearing on the title based on a claim that the latter merely holds such title in trust for the plaintiff. The action prescribes, however, within 10 years from the registration of the deed or the date of the issuance of the certificate of title of the property as long as the trust had not been repudiated. What is the exception to this 10-year prescriptive period? (A) When the plaintiff had no notice of the deed or the issuance of the certificate of title. (B) When the title holder concealed the matter from the plaintiff. (C) When fortuitous circumstances prevented the plaintiff from filing the case sooner. (D) When the plaintiff is in possession of the property. (95) Conrad and Linda, both 20 years old, applied for a marriage license, making it appear that they were over 25. They married without their parents knowledge before an unsuspecting judge. After the couple has been in cohabitation for 6 years, Lindas parents filed an action to annul the marriage on ground of lack of parental consent. Will the case prosper? (A) No, since only the couple can question the validity of their marriage after they became 21 of age; their cohabitation also convalidated the marriage. (B) No, since Lindas parents made no allegations that earnest efforts have been made to come to a compromise with Conrad and Linda and which efforts failed. (C) Yes, since the marriage is voidable, the couple being below 21 years of age when they married. (D) Yes, since Lindas parents never gave their consent to the marriage. (96) Pepito executed a will that he and 3 attesting witnesses signed following the formalities of law, except that the Notary Public failed to come. Two days later, the Notary Public notarized the will in his law office where all signatories to the will acknowledged that the testator signed the will in the presence of the witnesses and that the latter themselves signed the will in the presence of the testator and of one another. Was the will validly notarized? (A) No, since it was not notarized on the occasion when the signatories affixed their signatures on the will. (B) Yes, since the Notary Public has to be present only when the signatories acknowledged the acts required of them in relation to the will. (C) Yes, but the defect in the mere notarization of the will is not fatal to its execution. (D) No, since the notary public did not require the signatories to sign their respective attestations again.

(97) Venecio and Ester lived as common-law spouses since both have been married to other persons from whom they had been separated in fact for several years. Hardworking and bright, each earned incomes from their respective professions and enterprises. What is the nature of their incomes? (A) Conjugal since they earned the same while living as husband and wife. (B) Separate since their property relations with their legal spouses are still subsisting. (C) Co-ownership since they agreed to work for their mutual benefit. (D) Communal since they earned the same as commonlaw spouses. (98) What is the prescriptive period for filing an action for revocation of a donation based on acts of ingratitude of the donee? (A) 5 years from the perfection of the donation. (B) 1 year from the perfection of the donation. (C) 4 years from the perfection of the donation. (D) Such action does not prescribe. (99) Before Karen married Karl, she inherited P5 million from her deceased mother which amount she brought into the marriage. She later used part of the money to buy a new Mercedes Benz in her name, which Karen and her husband used as a family car. Is the car a conjugal or Karens exclusive property? (A) It is conjugal property since the spouses use it as a family car. (B) It is Karens exclusive property since it is in her name. (C) It is conjugal property having been bought during the marriage. (D) It is Karens exclusive property since she bought it with her own money. (100) Because of Xs gross negligence, Y suffered injuries that resulted in the abortion of the foetus she carried. Y sued X for, among other damages, P1 million for the death of a family member. Is Y entitled to indemnity for the death of the foetus she carried? (A) Yes, since the foetus is already regarded as a child from conception, though unborn. (B) No, since Xs would not have known that the accident would result in Ys abortion. (C) No, since birth determines personality, the accident did not result in the death of a person. (D) Yes, since the mother believed in her heart that she lost a child.

2011 Bar Examination Questionnaire for Remedial Law

(1) Anna filed a petition for appointment as regular administratrix of her fathers' estate. Her sister Sophia moved to dismiss the petition on the ground that the parties, as members of the same family, have not exerted earnest effort toward a compromise prior to the filing of the petition. Should the petition be dismissed? (A) Yes, since such earnest effort is jurisdictional in all estate cases. (B) No, since such earnest effort is not required in special proceedings. (C) Yes, since such earnest effort is required prior to the filing of the case. (D) No, since such earnest effort toward a compromise is not required in summary proceedings. (2) A pending criminal case, dismissed provisionally, shall be deemed permanently dismissed if not revived after 2 years with respect to offenses punishable by imprisonment (A) of more than 12 years. (B) not exceeding 6 years or a fine not exceeding P1,000.00. (C) of more than 6 years or a fine in excess of P1,000.00. (D) of more than 6 years. (3) Angie was convicted of false testimony and served sentence. Five years later, she was convicted of homicide. On appeal, she applied for bail. May the Court of Appeals deny her application for bail on ground of habitual delinquency? (A) Yes, the felonies are both punishable under the Revised Penal Code. (B) Yes, her twin convictions indicated her criminal inclinations. (C) No, the felonies fall under different titles in the Revised Penal Code. (D) No, the charges are both bailable. (4) Which of the following is NOT CONSISTENT with the rules governing expropriation proceedings? (A) The court shall declare the defendant who fails to answer the complaint in default and render judgment against him. (B) The court shall refer the case to the Board of Commissioners to determine the amount of just compensation. (C) The plaintiff shall make the required deposit and forthwith take immediate possession of the property sought to be expropriated. (D) The plaintiff may appropriate the property for public use after judgment and payment of the compensation fixed in it, despite defendants appeal. (5) Which of the following is a correct statement of the rule on amendment of the information in a criminal proceeding? (A) An amendment that downgrades the offense requires leave of court even before the accused pleads. (B) Substantial amendments are allowed with leave of court before the accused pleads. (C) Only formal amendments are permissible before the accused pleads.

(D) After the plea, a formal amendment may be made without leave of court. (6) Gary who lived in Taguig borrowed P1 million from Rey who lived in Makati under a contract of loan that fixed Makati as the venue of any action arising from the contract. Gary had already paid the loan but Rey kept on sending him letters of demand for some balance. Where is the venue of the action for harassment that Gary wants to file against Rey? (A) In Makati since the intent of the party is to make it the venue of any action between them whether based on the contract or not. (B) In Taguig or Makati at the option of Gary since it is a personal injury action. (C) In Taguig since Rey received the letters of demand there. (D) In Makati since it is the venue fixed in their contract. (7) Which of the following is NOT within the power of a judicial receiver to perform? (A) Bring an action in his name. (B) Compromise a claim. (C) Divide the residual money in his hands among the persons legally entitled to the same. (D) Invest the funds in his hands without court approval. (8) Which of the following precepts forms part of the rules governing small claims? (A) Permissive counterclaim is not allowed. (B) The court shall render its decision within 3 days after hearing. (C) Joinder of separate claims is not allowed. (D) Motion to declare defendant in default is allowed. (9) The Metropolitan Trial Court convicted Virgilio and Dina of concubinage. Pending appeal, they applied for bail, claiming they are entitled to it as a matter of right. Is their claim correct? (A) No, bail is not a matter of right after conviction. (B) Yes, bail is a matter of right in all cases not involving moral turpitude. (C) No, bail is dependent on the risk of flight. (D) Yes, bail is a matter of right in the Metropolitan Trial Court before and after conviction. (10) As a rule, the judge shall receive the evidence personally. In which of the following circumstances may the court delegate the reception of evidence to the clerk of court? (A) When a question of fact arises upon a motion. (B) When the trial of an issue of fact requires the examination of a long account. (C) In default or ex-parte hearings. (D) Upon motion of a party on reasonable grounds. (11) Which of the following is in accord with the applicable rules on receivership? (A) The court may appoint the plaintiff as receiver of the property in litigation over the defendants objection. (B) A receiver may be appointed after judgment if the judgment obligor refuses to apply his property to satisfy the judgment.

(C) The trial court cannot appoint a receiver when the case is on appeal. (D) The filing of bond on appointment of a receiver is mainly optional. (12) Bearing in mind the distinction between private and public document, which of the following is admissible in evidence without further proof of due execution or genuineness? (A) Baptismal certificates. (B) Official record of the Philippine Embassy in Singapore certified by the Vice- Consul with official seal. (C) Documents acknowledged before a Notary Public in Hong Kong. (D) Unblemished receipt dated December 20, 1985 signed by the promisee, showing payment of a loan, found among the well-kept file of the promissor. (13) Ramon witnessed the commission of a crime but he refuses to testify for fear of his life despite a subpoena being served on him. Can the court punish him for contempt? (A) No, since no person can be compelled to be a witness against another. (B) Yes, since public interest in justice requires his testimony. (C) No, since Ramon has a valid reason for not testifying. (D) Yes, since litigants need help in presenting their cases. (14) The right to intervene is not absolute. In general, it CANNOT be allowed where (A) the intervenor has a common interest with any of the parties. (B) it would enlarge the issues and expand the scope of the remedies. (C) the intervenor fails to put up a bond for the protection of the other parties. (D) the intervenor has a stake in the property subject of the suit. (15) Which of the following grounds for dismissal invoked by the court will NOT PRECLUDE the plaintiff from refiling his action? (A) Res judicata. (B) Lack of jurisdiction over the subject matter. (C) Unenforceability under the Statutes of Fraud. (D) Prescription. (16) When may a co-owner NOT demand the partition of the thing owned in common? (A) When the creditor of one of the co-owners has attached the property. (B) When the property is essentially indivisible. (C) When related co-owners agreed to keep the property within the family. (D) When a co-owner uses the property as his residence. (17) The city prosecutor of Manila filed, upon Soledads complaint, a criminal action for estafa against her sister, Wella, before the RTC of Manila for selling to Victor a land that she previously sold to Soledad. At the same time Soledad filed a civil action to annul the second sale before the RTC of Quezon City. May the Manila RTC motu proprio suspend the criminal action on ground of prejudicial question?

(A) Yes, if it may be clearly inferred that complainant will not object to the suspension of the criminal case. (B) No, the accused must file a motion to suspend the action based on prejudicial question. (C) Yes, if it finds from the record that such prejudicial question exists. (D) Yes, if it is convinced that due process and fair trial will be better served if the criminal case is suspended. (18) Which of the following conforms to the applicable rule on replevin? (A) The applicant must file a bond executed to the adverse party in an amount equal to the value of the property as determined by the court. (B) The property has been wrongfully detained by the adverse party. (C) The applicant has a contingent claim over the property object of the writ. (D) The plaintiff may apply for the writ at any time before judgment. (19) Gerry sued XYZ Bus Co. and Rico, its bus driver, for injuries Gerry suffered when their bus ran off the road and hit him. Of the two defendants, only XYZ Bus Co. filed an answer, alleging that its bus ran off the road because one of its wheels got caught in an open manhole, causing the bus to swerve without the drivers fault. Someone had stolen the manhole cover and the road gave no warning of the danger it posed. On Gerrys motion and over the objection of XYZ Bus Co., the court declared Rico, the bus driver, in default and rendered judgment ordering him to pay P50,000 in damages to Gerry. Did the court act correctly? (A) No, since the court should have tried the case against both defendants upon the bus companys answer. (B) No, the court should have dropped Rico as defendant since the moneyed defendant is the bus company. (C) Yes, the court can, under the rules, render judgment against the defendant declared in default. (D) Yes, since, in failing to answer, Rico may be deemed to have admitted the allegations in the complaint. (20) Which of the following has NO PLACE in an application for a replevin order? A statement (A) that the property is wrongfully detained by the adverse party. (B) that the property has not been distrained for a tax assessment or placed under custodia legis. (C) of the assessed value of the property. (D) that the applicant owns or has a right to the possession of the property. (21) 008-997-0001 In which of the following instances is the quantum of evidence ERRONEOUSLY applied? (A) in Writ of Amparo cases, substantial evidence. (B) to satisfy the burden of proof in civil cases, preponderance of evidence. (C) to overcome a disputable presumption, clear and convincing evidence. (D) to rebut the presumptive validity of a notarial document, substantial evidence.

(22) The accused jumps bail and fails to appear on promulgation of judgment where he is found guilty. What is the consequence of his absence? (A) Counsel may appeal the judgment in the absence of the accused. (B) The judgment shall be promulgated in his absence and he loses his right of appeal. (C) The promulgation of the judgment shall be suspended until he is brought to the jurisdiction of the court. (D) The judgment shall be void. (23) What should the court sheriff do if a third party serves on him an affidavit of claim covering the property he had levied? (A) Ask the judgment obligee to file a court-approved indemnity bond in favor of the third-party claimant or the sheriff will release the levied property. (B) Ask the judgment obligee to file a court-approved bond for the sheriffs protection in case he proceeds with the execution. (C) Immediately lift the levy and release the levied property. (D) Ask the third-party claimant to support his claim with an indemnity bond in favor of the judgment obligee and release the levied property if such bond is filed. (24) Which of the following is NOT REGARDED as a sufficient proof of personal service of pleadings? (A) Official return of the server. (B) Registered mail receipt. (C) Written admission of the party served. (D) Affidavit of the server with a statement of the date, place and manner of service. (25) A sued B for ejectment. Pending trial, B died, survived by his son, C. No substitution of party defendant was made. Upon finality of the judgment against B, may the same be enforced against C? (A) Yes, because the case survived Bs death and the effect of final judgment in an ejectment case binds his successors in-interest. (B) No, because C was denied due process. (C) Yes, because the negligence of Bs counsel in failing to ask for substitution, should not prejudice A. (D) No, because the action did not survive Bs death. (26) What is the proper remedy to secure relief from the final resolutions of the Commission On Audit? (A) Petition for review on certiorari with the Supreme Court. (B) Special civil action of certiorari with the Court of Appeals. (C) Special civil action of certiorari with the Supreme Court. (D) Appeal to the Court of Appeals. (27) Which of the following is a duty enjoined on the guardian and covered by his bond? (A) Provide for the proper care, custody, and education of the ward. (B) Ensure the wise and profitable investment of the wards financial resources.

(C) Collect compensation for his services to the ward. (D) Raise the ward to become a responsible member of society. (28) Berto was charged with and convicted of violating a city ordinance against littering in public places punishable by imprisonment of one month or a fine of P1,000.00. But the city mayor pardoned him. A year later, he was charged with violating a city ordinance against jaywalking which carried the same penalty. Need Berto post bail for such offense? (A) Yes, his previous conviction requires posting of bail for the present charge. (B) Yes, since he may be deemed to have violated the terms of his pardon. (C) No, because he is presumed innocent until proven otherwise. (D) No, one charged with the violation of a city ordinance is not required to post bail, notwithstanding a previous pardon. (29) Which of the following claims survive the death of the defendant and need not be presented as a claim against the estate? (A) Contingent money claims arising from contract. (B) Unenforced money judgment against the decedent, with death occurring before levy on execution of the property. (C) Claims for damages arising from quasi-delict. (D) Claims for funeral expenses. (30) In a case, the prosecutor asked the medical expert the question, "Assuming that the assailant was behind the deceased before he attacked him, would you say that treachery attended the killing?" Is this hypothetical question permissible? (A) No, since it asks for his legal opinion. (B) Yes, but conditionally, subject to subsequent proof that the assailant was indeed behind the deceased at that time. (C) Yes, since hypothetical questions may be asked of an expert witness. (D) No, since the medical expert has no personal knowledge of the fact. (31) The city prosecutor charged Ben with serious physical injuries for stabbing Terence. He was tried and convicted as charged. A few days later, Terence died due to severe infection of his stab wounds. Can the prosecution file another information against Ben for homicide? (A) Yes, since Terences death shows irregularity in the filing of the earlier charge against him. (B) No, double jeopardy is present since Ben had already been convicted of the first offense. (C) No, there is double jeopardy since serious physical injuries is necessarily included in the charge of homicide. (D) Yes, since supervening event altered the kind of crime the accused committed. (32) Arvin was caught in flagrante delicto selling drugs for P200,000.00. The police officers confiscated the drugs and the money and brought them to the police station where they prepared the inventory duly signed by police officer Oscar Moreno. They were, however, unable to take pictures of the items. Will this deficiency destroy the chain of custody rule in the drug case?

(A) No, a breach of the chain of custody rule in drug cases, if satisfactorily explained, will not negate conviction. (B) No, a breach of the chain of custody rule may be offset by presentation in court of the drugs. (C) Yes, chain of custody in drug cases must be strictly observed at all times to preserve the integrity of the confiscated items. (D) Yes, compliance with the chain of custody rule in drug cases is the only way to prove the accuseds guilt beyond reasonable doubt. (33) A sued B in the RTC of Quezon City, joining two causes of action: for partition of real property and breach of contract with damages. Both parties reside in Quezon City but the real property is in Manila. May the case be dismissed for improper venue? (A) Yes, since causes of action pertaining to different venues may not be joined in one action. (B) No, since causes of action pertaining to different venues may be joined in the RTC if one of the causes of action falls within its jurisdiction. (C) Yes, because special civil action may not be joined with an ordinary civil action. (D) No, since plaintiff may unqualifiedly join in one complaint as many causes of action as he has against opposing party. (34) What is the doctrine of judicial stability or non interference? (A) Once jurisdiction has attached to a court, it can not be deprived of it by subsequent happenings or events. (B) Courts will not hear and decide cases involving issues that come within the jurisdiction of administrative tribunals. (C) No court has the authority to interfere by injunction with the judgment of another court of coordinate jurisdiction. (D) A higher court will not entertain direct resort to it unless the redress sought cannot be obtained from the appropriate court. (35) Which of the following admissions made by a party in the course of judicial proceedings is a judicial admission? (A) Admissions made in a pleading signed by the party and his counsel intended to be filed. (B) An admission made in a pleading in another case between the same parties. (C) Admission made by counsel in open court. (D) Admissions made in a complaint superseded by an amended complaint. (36) What defenses may be raised in a suit to enforce a foreign judgment? (A) That the judgment is contrary to Philippine procedural rules. (B) None, the judgment being entitled to full faith and credit as a matter of general comity among nations. (C) That the foreign court erred in the appreciation of the evidence. (D) That extrinsic fraud afflicted the judgment. (37) Cindy charged her husband, George, with bigamy for a prior subsisting marriage with Teresa. Cindy presented Ric and Pat,

neighbors of George and Teresa in Cebu City, to prove, first, that George and Teresa cohabited there and, second, that they established a reputation as husband and wife. Can Cindy prove the bigamy by such evidence? (A) Yes, the circumstantial evidence is enough to support a conviction for bigamy. (B) No, at least one direct evidence and two circumstantial evidence are required to support a conviction for bigamy. (C) No, the circumstantial evidence is not enough to support a conviction for bigamy. (D) No, the circumstantial evidence cannot overcome the lack of direct evidence in any criminal case. (38) To prove payment of a debt, Bong testified that he heard Ambo say, as the latter was handing over money to Tessie, that it was in payment of debt. Is Bongs testimony admissible in evidence? (A) Yes, since what Ambo said and did is an independently relevant statement. (B) No, since what Ambo said and did was not in response to a startling occurrence. (C) No, since Bongs testimony of what Ambo said and did is hearsay. (D) Yes, since Ambos statement and action, subject of Bongs testimony, constitutes a verbal act. (39) Considering the qualifications required of a would-be witness, who among the following is INCOMPETENT to testify? (A) A person under the influence of drugs when the event he is asked to testify on took place. (B) A person convicted of perjury who will testify as an attesting witness to a will. (C) A deaf and dumb. (D) A mental retardate. (40) Arthur, a resident foreigner sold his car to Bren. After being paid but before delivering the car, Arthur replaced its original sound system with an inferior one. Bren discovered the change, rejected the car, and demanded the return of his money. Arthur did not comply. Meantime, his company reassigned Arthur to Singapore. Bren filed a civil action against Arthur for contractual fraud and damages. Upon his application, the court issued a writ of preliminary attachment on the grounds that (a) Arthur is a foreigner; (b) he departed from the Philippines; and (c) he was guilty of fraud in contracting with Bren. Is the writ of preliminary attachment proper? (A) No, Arthur is a foreigner living abroad; he is outside the courts jurisdiction. (B) Yes, Arthur committed fraud in changing the sound system and its components before delivering the car bought from him. (C) Yes the timing of his departure is presumptive evidence of intent to defraud. (D) No, since it was not shown that Arthur left the country with intent to defraud Bren. (41) What is the movants remedy if the trial court incorrectly denies his motion to dismiss and related motion for reconsideration? (A) Answer the complaint.

(B) File an administrative action for gross ignorance of the law against the trial judge. (C) File a special civil action of certiorari on ground of grave abuse of discretion. (D) Appeal the orders of denial. (42) During trial, plaintiff offered evidence that appeared irrelevant at that time but he said he was eventually going to relate to the issue in the case by some future evidence. The defendant objected. Should the trial court reject the evidence in question on ground of irrelevance? (A) No, it should reserve its ruling until the relevance is shown. (B) Yes, since the plaintiff could anyway subsequently present the evidence anew. (C) Yes, since irrelevant evidence is not admissible. (D) No, it should admit it conditionally until its relevance is shown. (43) Ben testified that Jaime, charged with robbery, has committed bag-snatching three times on the same street in the last six months. Can the court admit this testimony as evidence against Jaime? (A) No, since there is no showing that Ben witnessed the past three robberies. (B) Yes, as evidence of his past propensity for committing robbery. (C) Yes, as evidence of a pattern of criminal behavior proving his guilt of the present offense. (D) No, since evidence of guilt of a past crime is not evidence of guilt of a present crime. (44) What is the right correlation between a criminal action and a petition for Writ of Amparo both arising from the same set of facts? (A) When the criminal action is filed after the Amparo petition, the latter shall be dismissed. (B) The proceeding in an Amparo petition is criminal in nature. (C) No separate criminal action may be instituted after an Amparo petition is filed. (D) When the criminal action is filed after the Amparo petition, the latter shall be consolidated with the first. (45) Alex filed a petition for writ of amparo against Melba relative to his daughter Toni's involuntary disappearance. Alex said that Melba was Toni's employer, who, days before Toni disappeared, threatened to get rid of her at all costs. On the other hand, Melba countered that she had nothing to do with Toni's disappearance and that she took steps to ascertain Toni's whereabouts. What is the quantum of evidence required to establish the parties' respective claims? (A) For Alex, probable cause; for Melba, substantial evidence. (B) For Alex, preponderance of evidence; for Melba, substantial evidence. (C) For Alex, proof beyond reasonable doubt; for Melba, ordinary diligence. (D) For both, substantial evidence. (46) In which of the following situations is the declaration of a deceased person against his interest NOT ADMISSIBLE against him or his successors and against third persons?

(A) Declaration of a joint debtor while the debt subsisted. (B) Declaration of a joint owner in the course of ownership. (C) Declaration of a former co-partner after the partnership has been dissolved. (D) Declaration of an agent within the scope of his authority. (47) Defendant Dante said in his answer: "1. Plaintiff Perla claims that defendant Dante owes her P4,000 on the mobile phone that she sold him; 2. But Perla owes Dante P6,000 for the dent on his car that she borrowed." How should the court treat the second statement? (A) A cross claim (B) A compulsory counterclaim (C) A third party complaint (D) A permissive counterclaim (48) How will the court sheriff enforce the demolition of improvements? (A) He will give a 5-day notice to the judgment obligor and, if the latter does not comply, the sheriff will have the improvements forcibly demolished. (B) He will report to the court the judgment obligors refusal to comply and have the latter cited in contempt of court. (C) He will demolish the improvements on special order of the court, obtained at the judgment obligees motion. (D) He will inform the court of the judgment obligors noncompliance and proceed to demolish the improvements. (49) When may the bail of the accused be cancelled at the instance of the bondsman? (A) When the accused jumps bail. (B) When the bondsman surrenders the accused to the court. (C) When the accused fails to pay his annual premium on the bail bond. (D) When the accused changes his address without notice to the bondsman. (50) Which of the following MISSTATES a requisite for the issuance of a search warrant? (A) The warrant specifically describes the place to be searched and the things to be seized. (B) Presence of probable cause. (C) The warrant issues in connection with one specific offense. (D) Judge determines probable cause upon the affidavits of the complainant and his witnesses. (51) Ranger Motors filed a replevin suit against Bart to recover possession of a car that he mortgaged to it. Bart disputed the claim. Meantime, the court allowed, with no opposition from the parties, Midway Repair Shop to intervene with its claim against Bart for unpaid repair bills. On subsequent motion of Ranger Motors and Bart, the court dismissed the complaint as well as Midway Repair Shops intervention. Did the court act correctly? (A) No, since the dismissal of the intervention bars the right of Bart to file a separate action.

(B) Yes, intervention is merely collateral to the principal action and not an independent proceeding. (C) Yes, the right of the intervenor is merely in aid of the right of the original party, which in this case had ceased to exist. (D) No, since having been allowed to intervene, the intervenor became a party to the action, entitled to have the issue it raised tried and decided. (52) The accused was convicted for estafa thru falsification of public document filed by one of two offended parties. Can the other offended party charge him again with the same crime? (A) Yes, since the wrong done the second offended party is a separate crime. (B) No, since the offense refers to the same series of act, prompted by one criminal intent. (C) Yes, since the second offended party is entitled to the vindication of the wrong done him as well. (D) No, since the second offended party is in estoppel, not having joined the first criminal action. (53) Henry testified that a month after the robbery Asiong, one of the accused, told him that Carlos was one of those who committed the crime with him. Is Henrys testimony regarding what Asiong told him admissible in evidence against Carlos? (A) No, since it is hearsay. (B) No, since Asiong did not make the statement during the conspiracy. (C) Yes, since it constitutes admission against a coconspirator. (D) Yes, since it part of the res gestae. (54) Dorothy filed a petition for writ of habeas corpus against her husband, Roy, to get from him custody of their 5 year old son, Jeff. The court granted the petition and required Roy to turn over Jeff to his mother. Roy sought reconsideration but the court denied it. He filed a notice of appeal five days from receipt of the order denying his motion for reconsideration. Did he file a timely notice of appeal? (A) No, since he filed it more than 2 days after receipt of the decision granting the petition. (B) No, since he filed it more than 2 days after receipt of the order denying his motion for reconsideration. (C) Yes, since he filed it within 15 days from receipt of the denial of his motion for reconsideration. (D) Yes, since he filed it within 7 days from receipt of the denial of his motion for reconsideration. (55) Angel Kubeta filed a petition to change his first name "Angel." After the required publication but before any opposition could be received, he filed a notice of dismissal. The court confirmed the dismissal without prejudice. Five days later, he filed another petition, this time to change his surname "Kubeta." Again, Angel filed a notice of dismissal after the publication. This time, however, the court issued an order, confirming the dismissal of the case with prejudice. Is the dismissal with prejudice correct? (A) Yes, since such dismissal with prejudice is mandatory. (B) No, since the rule on dismissal of action upon the plaintiffs notice does not apply to special proceedings. (C) No, since change of name does not involve public interest and the rules should be liberally construed.

(D) Yes, since the rule on dismissal of action upon the plaintiffs notice applies and the two cases involve a change in name. (56) A complaint without the required "verification" (A) shall be treated as unsigned. (B) lacks a jurisdictional requirement. (C) is a sham pleading. (D) is considered not filed and should be expunged. (57) The decisions of the Commission on Elections or the Commission on Audit may be challenged by (A) petition for review on certiorari filed with the Supreme Court under Rule 45. (B) petition for review on certiorari filed with the Court of Appeals under Rule 42. (C) appeal to the Supreme Court under Rule 54. (D) special civil action of certiorari under Rule 65 filed with the Supreme Court. (58) Which of the following states a correct guideline in hearing applications for bail in capital offenses? (A) The hearing for bail in capital offenses is summary; the court does not sit to try the merits of the case. (B) The prosecutions conformity to the accuseds motion for bail is proof that its evidence of his guilt is not strong. (C) The accused, as applicant for bail, carries the burden of showing that the prosecutions evidence of his guilt is not strong. (D) The prosecution must have full opportunity to prove the guilt of the accused. (59) Apart from the case for the settlement of her parents' estate, Betty filed an action against her sister, Sigma, for reconveyance of title to a piece of land. Betty claimed that Sigma forged the signatures of their late parents to make it appear that they sold the land to her when they did not, thus prejudicing Bettys legitime. Sigma moved to dismiss the action on the ground that the dispute should be resolved in the estate proceedings. Is Sigma correct? (A) Yes, questions of collation should be resolved in the estate proceedings, not in a separate civil case. (B) No, since questions of ownership of property cannot be resolved in the estate proceedings. (C) Yes, in the sense that Betty needs to wait until the estate case has been terminated. (D) No, the filing of the separate action is proper; but the estate proceeding must be suspended meantime. (60) What is the consequence of the unjustified absence of the defendant at the pre-trial? (A) The trial court shall declare him as in default. (B) The trial court shall immediately render judgment against him. (C) The trial court shall allow the plaintiff to present evidence ex-parte. (D) The trial court shall expunge his answer from the record. (61) What is the remedy of the accused if the trial court erroneously denies his motion for preliminary investigation of the charge against him?

(A) Wait for judgment and, on appeal from it, assign such denial as error. (B) None since such order is final and executory. (C) Ask for reconsideration; if denied, file petition for certiorari and prohibition. (D) Appeal the order denying the motion for preliminary investigation. (62) Which of the following renders a complaint for unlawful detainer deficient? (A) The defendant claims that he owns the subject property. (B) The plaintiff has tolerated defendants possession for 2 years before demanding that he vacate it. (C) The plaintiffs demand is for the lessee to pay back rentals or vacate. (D) The lessor institutes the action against a lessee who has not paid the stipulated rents. (63) In a judicial foreclosure proceeding, under which of the following instances is the court NOT ALLOWED to render deficiency judgment for the plaintiff? (A) If the mortgagee is a banking institution. (B) if upon the mortgagors death during the proceeding, the mortgagee submits his claim in the estate proceeding. (C) If the mortgagor is a third party who is not solidarily liable with the debtor. (D) If the mortgagor is a non-resident person and cannot be found in the Philippines. (64) In which of the following cases is the plaintiff the real party in interest? (A) A creditor of one of the co-owners of a parcel of land, suing for partition (B) An agent acting in his own name suing for the benefit of a disclosed principal (C) Assignee of the lessor in an action for unlawful detainer (D) An administrator suing for damages arising from the death of the decedent (65) The defendant in an action for sum of money filed a motion to dismiss the complaint on the ground of improper venue. After hearing, the court denied the motion. In his answer, the defendant claimed prescription of action as affirmative defense, citing the date alleged in the complaint when the cause of action accrued. May the court, after hearing, dismiss the action on ground of prescription? (A) Yes, because prescription is an exception to the rule on Omnibus Motion. (B) No, because affirmative defenses are barred by the earlier motion to dismiss. (C) Yes, because the defense of prescription of action can be raised at anytime before the finality of judgment. (D) No, because of the rule on Omnibus Motion. (66) What is the effect of the failure of the accused to file a motion to quash an information that charges two offenses? (A) He may be convicted only of the more serious offense. (B) He may in general be convicted of both offenses.

(C) The trial shall be void. (D) He may be convicted only of the lesser offense. (67) Which of the following is a correct application of the rules involved in consolidation of cases? (A) Consolidation of cases pending in different divisions of an appellate court is not allowed. (B) The court in which several cases are pending involving common questions of law and facts may hear initially the principal case and suspend the hearing in the other cases. (C) Consolidation of cases pending in different branches or different courts is not permissible. (D) The consolidation of cases is done only for trial purposes and not for appeal. (68) Summons was served on "MCM Theater," a business entity with no juridical personality, through its office manager at its place of business. Did the court acquire jurisdiction over MCM Theaters owners? (A) Yes, an unregistered entity like MCM Theater may be served with summons through its office manager. (B) No, because MCM has no juridical personality and cannot be sued. (C) No, since the real parties in interest, the owners of MCM Theater, have not been served with summons. (D) Yes since MCM, as business entity, is a de facto partnership with juridical personality. (69) Fraud as a ground for new trial must be extrinsic as distinguished from intrinsic. Which of the following constitutes extrinsic fraud? (A) Collusive suppression by plaintiffs counsel of a material evidence vital to his cause of action. (B) Use of perjured testimony at the trial. (C) The defendants fraudulent representation that caused damage to the plaintiff. (D) Use of falsified documents during the trial. (70) Upon review, the Secretary of Justice ordered the public prosecutor to file a motion to withdraw the information for estafa against Sagun for lack of probable cause. The public prosecutor complied. Is the trial court bound to grant the withdrawal? (A) Yes, since the prosecution of an action is a prerogative of the public prosecutor. (B) No, since the complainant has already acquired a vested right in the information. (C) No, since the court has the power after the case is filed to itself determine probable cause. (D) Yes, since the decision of the Secretary of Justice in criminal matters is binding on courts. (71) Unexplained or unjustified non-joinder in the Complaint of a necessary party despite court order results in (A) the dismissal of the Complaint. (B) suspension of proceedings. (C) contempt of court. (D) waiver of plaintiffs right against the unpleaded necessary party. (72) Which of the following CANNOT be disputably presumed under the rules of evidence?

(A) That the thing once proved to exist continues as long as is usual with things of that nature. (B) That the law has been obeyed. (C) That a writing is truly dated. (D) That a young person, absent for 5 years, it being unknown whether he still lives, is considered dead for purposes of succession. (73) 008-464-0001 Which of the following is NOT REQUIRED in a petition for mandamus? (A) The act to be performed is not discretionary. (B) There is no other adequate remedy in the ordinary course of law. (C) RIGHT ANSWER The respondent neglects to perform a clear duty under a contract. (D) The petitioner has a clear legal right to the act demanded. (74) When is the defendant entitled to the return of the property taken under a writ of replevin? (A) When the plaintiffs bond is found insufficient or defective and is not replaced. (B) When the defendant posts a redelivery bond equal to the value of the property seized. (C) When the plaintiff takes the property and disposes of it without the sheriffs approval. (D) When a third party claims the property taken yet the applicant does not file a bond in favor of the sheriff. (75) Character evidence is admissible (A) in criminal cases, the accused may prove his good moral character if pertinent to the moral trait involved in the offense charged. (B) in criminal cases, the prosecution may prove the bad moral character of the accused to prove his criminal predisposition. (C) in criminal cases, the bad moral character of the offended party may not be proved. (D) when it is evidence of the good character of a witness even prior to impeachment. (76) Xs action for sum of money against Y amounting to P80,000.00 accrued before the effectivity of the rule providing for shortened procedure in adjudicating claims that do not exceed P100,000.00. X filed his action after the rule took effect. Will the new rule apply to his case? (A) No since what applies is the rule in force at the time the cause of action accrued. (B) No, since new procedural rules cover only cases where the issues have already been joined. (C) Yes, since procedural rules have retroactive effect. (D) Yes, since procedural rules generally apply prospectively to pending cases. (77) A motion for reconsideration of a decision is pro forma when (A) it does not specify the defects in the judgment. (B) it is a second motion for reconsideration with an alternative prayer for new trial. (C) it reiterates the issues already passed upon but invites a second look at the evidence and the arguments.

(D) its arguments in support of the alleged errors are grossly erroneous. (78) Which of the following correctly states the rule on foreclosure of mortgages? (A) The rule on foreclosure of real estate mortgage is suppletorily applicable to extrajudicial foreclosures. (B) In judicial foreclosure, an order of confirmation is necessary to vest all rights in the purchaser. (C) There is equity of redemption in extra-judicial foreclosure. (D) A right of redemption by the judgment obligor exists in judicial foreclosure. (79) The information charges PNP Chief Luis Santos, (Salary Grade 28), with "taking advantage of his public position as PNP Head by feloniously shooting JOSE ONA, inflicting on the latter mortal wounds which caused his death." Based solely on this allegation, which court has jurisdiction over the case? (A) Sandiganbayan only (B) Sandiganbayan or Regional Trial Court (C) Sandiganbayan or Court Martial (D) Regional Trial Court only (80) Distinguish between conclusiveness of judgment and bar by prior judgment. (A) Conclusiveness of judgment bars another action based on the same cause; bar by prior judgment precludes another action based on the same issue. (B) Conclusiveness of judgment bars only the defendant from questioning it; bar by prior judgment bars both plaintiff and defendant. (C) Conclusiveness of judgment bars all matters directly adjudged; bar by prior judgment precludes all matters that might have been adjudged. (D) Conclusiveness of judgment precludes the filing of an action to annul such judgment; bar by prior judgment allows the filing of such an action. (81) Which of the following matters is NOT A PROPER SUBJECT of judicial notice? (A) Persons have killed even without motive. (B) Municipal ordinances in the municipalities where the MCTC sits. (C) Teleconferencing is now a way of conducting business transactions. (D) British law on succession personally known to the presiding judge. (82) The RTC of Malolos, Branch 1, issued a writ of execution against Rene for P20 million. The sheriff levied on a school building that appeared to be owned by Rene. Marie, however, filed a third party claim with the sheriff, despite which, the latter scheduled the execution sale. Marie then filed a separate action before the RTC of Malolos, Branch 2, which issued a writ of preliminary injunction enjoining the sheriff from taking possession and proceeding with the sale of the levied property. Did Branch 2 correctly act in issuing the injunction? (A) Yes, since the rules allow the filing of the independent suit to check the sheriffs wrongful act in levying on a third partys property.

(B) Yes, since Branch 2, like Branch 1, is part of the RTC of Malolos. (C) No, because the proper remedy is to seek relief from the same court which rendered the judgment. (D) No, since it constitutes interference with the judgment of a co-equal court with concurrent jurisdiction. (83) What is the effect and ramification of an order allowing new trial? (A) The courts decision shall be held in suspension until the defendant could show at the reopening of trial that it has to be abandoned. (B) The court shall maintain the part of its judgment that is unaffected and void the rest. (C) The evidence taken upon the former trial, if material and competent, shall remain in use. (D) The court shall vacate the judgment as well as the entire proceedings had in the case. (84) Which of the following is sufficient to disallow a will on the ground of mistake? (A) An error in the description of the land devised in the will. (B) The inclusion for distribution among the heirs of properties not belonging to the testator. (C) The testator intended a donation intervivos but unwittingly executed a will. (D) An error in the name of the person nominated as executor. (85) As a rule, the estate shall not be distributed prior to the payment of all charges to the estate. What will justify advance distribution as an exception? (A) The estate has sufficient residual assets and the distributees file sufficient bond. (B) The specific property sought to be distributed might suffer in value. (C) An agreement among the heirs regarding such distribution. (D) The conformity of the majority of the creditors to such distribution. (86) A party aggrieved by an interlocutory order of the Civil Service Commission (CSC) filed a petition for certiorari and prohibition with the Court of Appeals. May the Court of Appeals take cognizance of the petition? (A) Yes, provided it raises both questions of facts and law. (B) No, since the CSC Chairman and Commissioners have the rank of Justices of the Court of Appeals. (C) No, since the CSC is a Constitutional Commission. (D) Yes, since the Court of Appeals has jurisdiction over the petition concurrent with the Supreme Court. (87) Which of the following is appealable? (A) An order of default against the defendant. (B) The denial of a motion to dismiss based on improper venue. (C) The dismissal of an action with prejudice. (D) The disallowance of an appeal.

(88) Which of the following is NOT REQUIRED of a declaration against interest as an exception to the hearsay rule? (A) The declarant had no motive to falsify and believed such declaration to be true. (B) The declarant is dead or unable to testify. (C) The declaration relates to a fact against the interest of the declarant. (D) At the time he made said declaration he was unaware that the same was contrary to his aforesaid interest. (89) To prove the identity of the assailant in a crime of homicide, a police officer testified that, Andy, who did not testify in court, pointed a finger at the accused in a police lineup. Is the police officers testimony regarding Andy's identification of the accused admissible evidence? (A) Yes, since it is based on his personal knowledge of Andys identification of the accused. (B) Yes, since it constitutes an independently relevant statement. (C) No, since the police had the accused identified without warning him of his rights. (D) No, since the testimony is hearsay. (90) In which of the following cases is the testimony in a case involving a deceased barred by the Survivorship Disqualification Rule or Dead Man Statute? (A) Testimony against the heirs of the deceased defendant who are substituted for the latter. (B) The testimony of a mere witness who is neither a party to the case nor is in privity with the latter. (C) The testimony of an oppositor in a land registration case filed by the decedents heirs. (D) The testimony is offered to prove a claim less than what is established under a written document signed by the decedent. (91) The prosecution moved for the discharge of Romy as state witness in a robbery case it filed against Zoilo, Amado, and him. Romy testified, consistent with the sworn statement that he gave the prosecution. After hearing Romy, the court denied the motion for his discharge. How will denial affect Romy? (A) His testimony shall remain on record. (B) Romy will be prosecuted along with Zoilo and Amado. (C) His liability, if any, will be mitigated. (D) The court can convict him based on his testimony. (92) In proceedings for the settlement of the estate of deceased persons, the court in which the action is pending may properly (A) pass upon question of ownership of a real property in the name of the deceased but claimed by a stranger. (B) pass upon with the consent of all the heirs the issue of ownership of estate asset, contested by an heir if no third person is affected. (C) rule on a claim by one of the heirs that an estate asset was held in trust for him by the deceased. (D) rescind a contract of lease entered into by the deceased before death on the ground of contractual breach by the lessee. (93) Which of the following stipulations in a contract will supersede the venue for actions that the rules of civil procedure fix?

(A) In case of litigation arising from this contract of sale, the preferred venue shall be in the proper courts of Makati. (B) Should the real owner succeed in recovering his stolen car from buyer X, the latter shall have recourse under this contract to seller Y exclusively before the proper Cebu City court. (C) Venue in case of dispute between the parties to this contract shall solely be in the proper courts of Quezon City. (D) Any dispute arising from this contract of sale may be filed in Makati or Quezon City. (94) Allan was riding a passenger jeepney driven by Ben that collided with a car driven by Cesar, causing Allan injury. Not knowing who was at fault, what is the best that Allan can do? (A) File a tort action against Cesar. (B) Await a judicial finding regarding who was at fault. (C) Sue Ben for breach of contract of carriage. (D) Sue both Ben and Cesar as alternative defendants. (95) A surety company, which provided the bail bond for the release of the accused, filed a motion to withdraw as surety on the ground of the accuseds non-payment of the renewal premium. Can the trial court grant the withdrawal? (A) No, since the suretys undertaking is not annual but lasts up to judgment. (B) Yes, since surety companies would fold up otherwise. (C) No, since the surety company technically takes the place of the accused with respect to court attendance. (D) Yes, since the accused has breached its agreement with the surety company. (96) To prove that Susan stabbed her husband Elmer, Rico testified that he heard Leon running down the street, shouting excitedly, "Sinasaksak daw ni Susan ang asawa niya! (I heard that Susan is stabbing her husband!)" Is Leon's statement as narrated by Rico admissible? (A) No, since the startling event had passed. (B) Yes, as part of the res gestae. (C) No, since the excited statement is itself hearsay. (D) Yes, as an independently relevant statement. (97) Which of the following NOT TRUE regarding the doctrine of judicial hierarchy? (A) It derives from a specific and mandatory provision of substantive law. (B) The Supreme Court may disregard the doctrine in cases of national interest and matters of serious implications. (C) A higher court will not entertain direct recourse to it if redress can be obtained in the appropriate courts. (D) The reason for it is the need for higher courts to devote more time to matters within their exclusive jurisdiction. (98) Plaintiff Manny said in his complaint: "3. On March 1, 2001 defendant Letty borrowed P1 million from plaintiff Manny and made a promise to pay the loan within six months." In her answer, Letty alleged: "Defendant Letty specifically denies the allegations in paragraph 3 of the complaint that she borrowed P1 million from

plaintiff Manny on March 1, 2001 and made a promise to pay the loan within six months." Is Lettys denial sufficient? (A) Yes, since it constitutes specific denial of the loan. (B) Yes, since it constitutes positive denial of the existence of the loan. (C) No, since it fails to set forth the matters defendant relied upon in support of her denial. (D) No, since she fails to set out in par. 2 of her answer her special and affirmative defenses. (99) When may an information be filed in court without the preliminary investigation required in the particular case being first conducted? (A) Following an inquest, in cases of those lawfully arrested without a warrant. (B) When the accused, while under custodial investigation, informs the arresting officers that he is waiving his right to preliminary investigation. (C) When the accused fails to challenge the validity of the warrantless arrest at his arraignment. (D) When the arresting officers take the suspect before the judge who issues a detention order against him. (100) In a civil action involving three separate causes of action, the court rendered summary judgment on the first two causes of action and tried the third. After the period to appeal from the summary judgment expired, the court issued a writ of execution to enforce the same. Is the writ of execution proper? (A) No, being partial, the summary judgment is interlocutory and any appeal from it still has to reckon with the final judgment. (B) Yes since, assuming the judgment was not appealable, the defendant should have questioned it by special civil action of certiorari. (C) No, since the rules do not allow a partial summary judgment. (D) No, since special reason is required for execution pending rendition of a final decision in the case.