POLITICAL LAW

Q1. What constitutes initiation of impeachment proceedings under the provision? (3%)
(2017 Bar Question)

SUGGESTED ANSWER: Under Article XI, Sec. 3 of the Constitution, the initiation of
impeachment proceedings starts with the filing of the complaint. The vote of one-third of
the House in a resolution of impeachment does not initiate the impeachment proceedings
which was already initiated by the filing of a verified complaint under Section 3, paragraph
(2), Article XI of the Constitution [Francisco v. House of Representatives, 415 SCRA
44(2003)].

Q2. Congress enacted R.A. No. 14344 creating the City of Masuwerte which took
effect on September 25, 2014. Section 23 of the law specific exempts the City of
Masuwerte from the payment of legal fees in the cases that it would file and/or prosecute
in the courts of law. In two (2) cases that it filed, the City of Masuwerte was assessed legal
fees by the clerk of court pursuant to Rule 141 (Legal Fees) of the Rules of Court. The
City of Masuwerte questions the assessment claiming that it is exempt from paying legal
fees under Section 23 of its charter. Is the claim of exemption tenable? Explain. (4%)
(2015 Bar Question)

SUGGESTED ANSWER: The exemption from payment of legal fees is not valid. The rules
promulgated by the Supreme Court for the payment of legal fees were in the exercise of
its rule-making power cannot be modified by a law granting an exemption from payment.
(In Re Exemption from Payment of Court and Sheriff’s Fees of Duly Registered
Cooperatives, 668 SCRA 1 [2012]).

Q3. The Executive Department has accumulated substantial savings from its
appropriations. Needing P3,000,000.00 for the conduct of a plebiscite for the creation of
a new city but has no funds appropriated soon by the Congress for the purpose, the
COMELEC requests the President to transfer funds from the savings of the Executive
Department in order to avoid a delay in the holding of the plebiscite.

May the President validly exercise his power under the 1987 Constitution to transfer funds
from the savings of the Executive Department, and make a cross-border transfer of
P3,000,000.00 to the COMELEC by way of augmentation? Is your answer the same if the
transfer is treated as aid to the COMELEC? Explain your answer. (4%) (2017 Bar
Question)

SUGGESTED ANSWER: The President may not transfer savings to the Commission on
Elections as aid. The constitutional prohibition against the transfer of appropriations to
other branches of government or Constitutional Commission applies for whatever reason
[Araullo v. Aquino III, 728 SCRA 1(2014)].

Q4. May a complaint for disbarment against the Ombudsman prosper during her
incumbency? Explain your answer. (2017 Bar Question)
 SUGGESTED ANSWER: A complaint for disbarment cannot be filed against the
Ombudsman during her incumbency. Article XI, Sec. 8 of the 1987 Philippine Constitution
imposes membership of the Philippine Bar as a qualification to be an Ombudsman. The
Ombudsman is removable only by impeachment. If the Ombudsman were to be disbarred,
he would be removed from office without undergoing impeachment (Article XI, Section 2
of the 1987 Philippine Constitution).

Q5. Congress passed Republic Act No. 7711 to comply with the United Nations
Convention on the Law of the Sea.

In a petition filed with the Supreme Court, Anak Ti Ilocos, an association of Ilocano
professionals, argued that Republic Act No. 7711 discarded the definition of the Philippine
territory under the Treaty of Paris and in related treaties; excluded the Kalayaan Islands
and the Scarborough Shoals from the Philippine Archipelagic baselines; and converted
internal waters into archipelagic waters. Is the petition meritorious? (2013 Bar Question)

SUGGESTED ANSWER: No, the petition is not meritorious. The United Nations
Convention on the Law of the Sea has nothing to do with the acquisition or loss of
territory. It merely regulates sea-use rights over maritime zones, contiguous zones,
exclusive economic zones, and continental shelves which it delimits. The Kalayaan
Islands and the Scarborough Shoals are located at an appreciable distance from the
nearest shoreline of the Philippine archipelago. A straight baseline loped around them
from the nearest baseline will violate Article 47(3) and Article 47(2) of the United Nations
Convention on the Law of the Sea III. Whether the bodies of water lying landward of the
baselines of the Philippines are internal waters or archipelagic waters, the Philippines
retains jurisdiction over them (Magallona v. Ermita, G.R. No. 187167, July 16, 2011).
 LABOR LAW

Q1.Rocket Corporation is a domestic corporation registered with the SEC, with 30% of its
authorized capital stock owned by foreigners and 70% of its authorized capital stock
owned by Filipinos.
A. Is Rocket Corporation allowed to engage in the recruitment and placement of
workers, locally and overseas? Briefly state the basis for your answer. (2%) (2015
Bar Question)
B. When does the recruitment of workers become an act of economic sabotage?

SUGGESTED ANSWER:

A. No. The Labor Code mandates that for a Corporation to validly engage in
recruitment and placement of workers, locally and overseas, at least seventy-five
percent (75%) of its authorized and voting capital stock must be owned and
controlled by Filipino citizens [Article 27, Labor Code]. Since only 70% of its
authorized capital stock is owned by Filipinos, Rocket Corporation cannot validly
engage in recruitment and placement of workers, locally and overseas.
B. Under RA 8042, illegal recruitment is considered economic sabotage if it is
committed by a syndicate or is large scale in scope. It is syndicated illegal
recruitment if the illegal recruitment is carried out by three (3) or more conspirators;
and it is large scale in scope when it is committed against three (3) more persons,
individually or as a group. [Section 6(m), Republic Act No. 8042]

Q2. Give the characteristics of each category of employees under Sec. 255 of the Labor Code,
and state whether the employees in each category may organize and form unions. Explain
your answer. (2017 Bar Question)

SUGGESTED ANSWER: Managerial employees – those vested with powers or

prerogatives to lay down and execute management policies and/or to hire, transfer,
suspend, lay-off, recall employees [Article 219, par. m, Labor Code] Managerial
employees cannot join, assist or form unions [Article 255, Labor Code].

Supervisory employees – those who, in the interest of management, effectively

recommend such managerial actions if the exercise of such authority is not merely routine
or clerical in nature, but requires use of independent judgment [Article 219, par. m, Labor
Code]. Supervisory employees are not eligible for membership in a labor organization of
rank-and-file employees but may join, assist, or form separate labor organizations of their
own [Article 255, Labor Code].

Rank-and-file employees – all other employees not falling within the definition of
“managerial” or “supervisory” employees are considered rank-and-file employees [Article
219, par. m, Labor Code]. Rank-and-file employees have the right to form, join or assist
unions of their own choosing [Article 253, Labor Code].

Q3. The Collective Bargaining Agreement (CBA) between Libra Films and its union, Libra
Films Employees' Union (LFEU), contains the following standard clauses:
 1. Maintenance of membership;
2. Check off for union dues and agency fees; and
3. No strike, no lock-out.

While Libra Films and LFEU are in re-negotiations for an extension of the CBA, LFEU
discovers that some of its members have resigned from the union, citing their
constitutional right to organize (which includes the right NOT to organize). LFEU demands
that Libra Films institute administrative proceedings to terminate those union members
who resigned in violation of the CBA's maintenance of membership clause. Libra Films
refuses, citing its obligation to remain a neutral party. As a result, LFEU declares a strike
and after filing a notice of strike and taking a strike vote goes on strike. The union claims
that Libra Films grossly violated the terms of the CBA and engaged in unfair labor practice.
(2015 Bar Question)

Are LFEU's claims correct? Explain. (4%) (See ULP under Collective Bargaining)

SUGGESTED ANSWER: LFEU’s claim that Libra Films committed ULP based on its
violation of the CBA is not correct. For violation of a CBA to constitute ULP, the violation
must be violation of its economic provisions and must be gross and flagrant. Based on the
allegation of the union, what was violated was the maintenance of membership clause
which was a political or representational provision; hence, no ULP was committed. [BPI
Employees Union-Davao City v. BPI, 702 SCRA 42].

Q4. Rank-and-file workers from Peacock Feathers, a company with 120 employees,
registered their independent labor organization with the Department of Labor and
Employment (DOLE) Regional Office. Management countered with a petition to cancel the
union’s registration on the ground that the minutes of ratification' of the union constitution
and-by-laws submitted to the DOLE were fraudulent. Specifically, management presented
affidavits of ten (10) out of forty (40) individuals named in the list of union members who
participated in the ratification, alleging that they were not present at the supposed January
1, 2010 meeting held for the purpose. The union argued that the stated date of the meeting
should have read “January 11, 2010,” instead of “January 1, 2010”, and that, at any rate,
the other thirty (30) union members were enough to register a union. Decide with reason.
(3%) (2010 Bar Question)

SUGGESTED ANSWER: Petition for cancellation is dismissed. It has been held that to
be a ground for the cancellation of union registration under the Labor Code, the nature of
the fraud must be grave and compelling enough to vitiate the consent of the majority of
union members. In the situation described, the indicated date of the meeting is purely a
typographical error as admitted by the union itself. There was no willful or deliberate
intention to defraud the union members that will vitiate their consent to the ratification.
[Mariwasa Siam Ceramics v. Secretary, 60S SCRA 706 [2009]].

Also, 20% of 120 is 24. So, even if the 10 union members disown their participation to the
ratification of the union constitution and by-laws, the union is correct in arguing that the 30
union members suffice to uphold the legitimacy of its union [Article 240, Labor Code].
Q5.Hagibis Motors Corporation (Hagibis) has 500 regular employees in its car assembly plant.
Due to the Asian financial crisis, Hagibis experienced very low car sales resulting to huge
financial losses. It implemented several cost-cutting measures such as cost reduction on
use of office supplies, employment hiring freeze, prohibition on representation and travel
expenses, separation of casuals and reduced work week. As counsel of Hagibis, what are
the measures the company should undertake to implement a valid retrenchment? Explain.
(5%) (2015 Bar Question)

SUGGESTED ANSWER: For a valid retrenchment, the following requisites must be

complied with: (a) the retrenchment is necessary to prevent losses and such losses are
proven; (b) written notice to the employees and to the DOLE at least one month prior to
the intended date of retrenchment; and (c) payment of separation pay equivalent to one-
month pay or at least one-half month pay for every year of service, whichever is higher.

Jurisprudential standards for the losses which may justify retrenchment are: Firstly, the
losses expected should be substantial and not merely de minimis in extent. If the loss
purportedly sought to be forestalled by retrenchment is clearly shown to be insubstantial
and inconsequential in character, the bona fide nature of the retrenchment would appear
to be seriously in question; secondly, the substantial loss must be reasonably imminent,
as such imminence can be perceived objectively and in good faith by the employer; thirdly,
because of the consequential nature of retrenchment, it must be reasonably necessary
and is likely to be effective in preventing the expected losses; lastly, alleged losses if
already realized, and the expected imminent losses sought to be forestalled, must be
proved by sufficient and convincing evidence. [Manatad v. Philippine Telegraph and
Telephone Corporation, G.R. No. 172363, March 7, 2008].

Hagibis should exercise its prerogative to retrench employees in good faith. It must be for
the advancement of its interest and not to defeat or circumvent the employees' right to
security of tenure. Hagibis should use fair and reasonable criteria, such as status,
efficiency, seniority, physical fitness, age, and financial hardship for certain workers in
ascertaining who would be dismissed and who would be retained among the employees.
 CIVIL LAW

Q1. Harry married Wilma, a very wealthy woman. Barely five (5) years into the marriage,
Wilma fell in love with Joseph. Thus, Wilma went to a small country in Europe, became a
naturalized citizen of that country, divorced Harry, and married Joseph. A year thereafter,
Wilma and Joseph returned and established permanent residence in the Philippines.

Is the divorce obtained by Wilma from Harry-recognized in the Philippines? Explain your
answer. (2009 Bar Question)

SUGGESTED ANSWER: As to Wilma, the divorce obtained by her is recognized as valid

in the Philippines because she is now a foreigner. Philippine personal laws do not apply
to a foreigner. However, recognition of the divorce as regards Harry will depend on the
applicability to his case of the second paragraph of Article 26 of the Family Code. If it is
applicable, divorce is recognized as to him and, therefore, he can remarry. However, if it
is not applicable, divorce is not recognized as to him and, consequently, he cannot
remarry.

ANOTHER SUGGESTED ANSWER: Yes, the divorce obtained by Wilma is recognized

as valid in the Philippines. At the time she got the divorce, she was already a foreign
national having been naturalized as a citizen of that “small country in Europe.” Based on
precedents established by the Supreme Court (Bayot v. CA, 570SCRA 472 [2008]),
divorce obtained by a foreigner is recognized in the Philippines if validly obtained in
accordance with his or her national law.

Q2.Marco and Gina were married in 1989. Ten years later, or in 1999, Gina left Marco and
lived with another man, leaving their two children of school age with Marco. When Marco
needed money for their children's education he sold a parcel of land registered in his
name, without Gina's consent, which he purchased before his marriage. Is the sale by
Marco valid, void or voidable? Explain with legal basis. (2015 Bar Question)

SUGGESTED ANSWER: The sale made by Marco is considered void. The parties were
married in 1989 and no mention was made whether they executed a marriage settlement.
In the absence of a marriage settlement, the parties shall be governed by absolute
community of property whereby all the properties owned by the spouses at the time of the
celebration of the marriage as well as whatever they may acquire during the marriage shall
form part of the absolute community. In ACP, neither spouse can sell or encumber
property belonging to the ACP without the consent of the other. Any sale or encumbrance
made by one spouse without the consent of the other shall be void although it is
considered as a continuing offer on the part of the consenting spouse upon authority of
the court or written consent of the other spouse (Art. 96, Family Code).

Q3.Plutarco owned land that borders on a river. After several years the action of the water of
the river caused the deposit of soil, and increased the area of Plutarco’s property by 200
square meters. (2017 BAR)
 a. If Plutarco wants to own the increase in area, what will be his legal basis for doing
so? Explain your answer.
b. On the other hand, if the river dries up, may Plutarco validly claim a right of
ownership of the dried-up river bed? Explain your answer.

SUGGESTED ANSWER:

a. Plutarco’s legal basis for owning the increase in area would be by accretion under
Article 457 of the New Civil Code, which says that the accretion of soil which is
gradually received from the effects of the current of the waters belongs to the
owners of land adjoining the banks of the river. The requisites in order that the
reparian owner will own the alluvion deposited through the process of accretion
are as follows: (1). the deposit should be gradual and imperceptible, (2). the cause
of the accretion is the current of the river and is not artificial or man-made, and 3)
the land where the accretion takes place is adjacent to the river bank. In Plutarco’s
case, all three requisites are met, as the accretion took place over several years,
was caused by the action of the river, and the land he owned borderes a river;
therefore, he owns the increase in area by virtue of accretion.
b. Rivers and their natural beds, being of public dominion [Article 502(1) Civil Code],
are not subject to appropriation or accretion. The dried-up riverbed remains to be
of public dominion and Plutarco cannot validly claim a right ownership over it
[Republic v. Santos, G.R. No. 160453 (2012)].

Q4.John Sagun and Maria Carla Camua, British citizens at birth, acquired Philippine
citizenship by naturalization after their marriage. During their marriage, the couple
acquired substantial landholdings in London and in Makati. Maria begot three (3) children,
Jorge, Luisito, and Joshur. In one of their trips to London, the couple executed a joint will
appointing each other as their heirs and providing that upon the death of the survivor
between them, the entire estate would go to Jorge and Luisito only but the two (2) could
not dispose of nor divide the London estate as long as they live. John and Maria died
tragically in the London subway terrorist attack in 2005. Jorge and Luisito filed a petition
for probate of their parents’ will before a Makati RTC. Joshur vehemently objected
because he was preterited. (2012 BAR)
a. Should the will be admitted to probate? Explain.
b. Are the testamentary dispositions valid? Explain.
c. Is the testamentary prohibition against the division of the London estate valid?
Explain.

SUGGESTED ANSWER:

a. NO, the will should not be admitted to probate since the couple are both Filipino
citizens. Arts. 818 and 819 shall apply. Said Articles prohibit the execution of joint
wills and make them void, even though authorized by the laws of the country where
they were executed.
b. NO. Since the joint will is void, all the testamentary dispositions written therein are
also void. However, if the will is valid, the institutions of heirs shall be annulled
 because Joshur was preterited. He was preterited because he will receive nothing
from the will, will receive nothing by intestacy, and the facts do not show that he
received anything as an advance on his inheritance. He was totally excluded from
the inheritance of his parents.
c. Assuming the will of John and Maria is valid, the testamentary prohibition on the
division of the London estate shall be valid but only for 20 years. A testamentary
disposition of the testator cannot forbid the partition of all or part of his estate for a
period longer than twenty (20) years (Arts. 1083 and 494).

Q5.Dux leased his house to Iris for a period of 2 years, at the rate of P25,000.00 monthly,
payable annually in advance. The contract stipulated that it may be renewed for another
2-year period upon mutual agreement of the parties. The contract also granted Iris the
right of first refusal to purchase the property at any time during the lease, if Dux decides
to sell the property at the same price that the property is offered for sale to a third party.
Twenty-three months after execution of the lease contract, Dux sold the house to his
mother for P2 million. Iris claimed that the sale was a breach of her right of first refusal.
Dux said there was no breach because the property was sold to his mother who is not a
third party. Iris filed an action to rescind the sale and to compel Dux to sell the property to
her at the same price. Alternatively, she asked the court to extend the lease for another 2
years on the same terms.

Can Iris seek rescission of the sale of the property to Dux’s mother? (2008 BAR)

SUGGESTED ANSWER:

Iris can seek rescission because rescission is a relief allowed for the protection of one of
the contracting parties and even third persons from all injury and damage the contract of
sale may causes or the protection of some incompatible and preferred right.
 TAXATION LAW

Q1. Explain briefly whether the following items are taxable or non-taxable:
a. Income from jueteng
b. Gain arising from expropriation of property
c. Taxes paid and subsequently refunded
d. Recovery of bad debts previously charged off
e. Gain on the sale of a car used for personal purposes (2006 Bar)

SUGGESTED ANSWER:

f. Taxable. The law imposes a tax on income from any source whatever which means
that it includes income whether legal or illegal.
g. Taxable. There is a material gain, not excluded by law, realized out of a closed
and completed transaction. Gains from dealings in property are part of gross
income.
h. It depends. Taxes paid which are allowed as a deduction from gross income are
taxable when subsequently refunded but only to the extent of the income tax
benefit of said deduction. It follows that taxes paid which are not allowed as
deduction from gross income, i.e., income tax, donor’s tax, and estate tax, are not
taxable when refunded.
i. Recovery of bad debts previously charged off is taxable to the extent of income
tax benefit of said deduction.
j. Gain on the sale of a car used for personal purposes is taxable. This is a gain
derived from dealings in property which is part of the taxpayer’s gross income.
There is a material gain, not excluded by law, realized out of a closed and
completed transaction.

Q2. To provide means for rehabilitation and stabilization of the sugar industry so as to
prepare it for the eventuality of the loss of the quota allocated to the Philippines resulting
from the lifting of the U.S. sanctions against an African country, Congress passes a law
increasing the existing tax on the manufacture of sugar on a graduated basis. All
collections made under the law are to accrue to a special fund to be spent only for the
purposes enumerated therein, among which are to place the sugar industry in a position
to maintain itself and ultimately to insure its continued existence despite the loss of that
quota, and to afford laborers employed in the industry a living wage and to improve their
working conditions. X, a sugar planter, files a suit questioning the constitutionality of the
law alleging that the tax is not for a public purpose as the same is being levied exclusively
for the aid and support of the sugar industry. (1991 Bar)

Decide the case.

SUGGESTED ANSWER: The suit filed by the sugar planter questioning the
constitutionality of the sugar industry stabilization measure is untenable. Taxation is no
longer merely for raising revenue to support the existence of government but the power
may also be exercised to carry out legitimate objects of the government. It is a legitimate
 object of the government to protect its local industries on which the national economy
largely depends. Where the aim of the tax measure is to achieve such a governmental
objective, the tax imposition can be said to be for a public purpose. [Gaston v. Republic
Bank, 158 SCRA 626]

Q3. The Sangguniang Bayan of the Municipality of Sampaloc, Quezon, passed an

ordinance imposing a storage fee of ten centavos for every 100 kilos of copra deposited
in any bodega within the Municipality’s jurisdiction. The Metropolitan Manufacturing
Corporation (MMC), with principal office in Makati, is engaged in the manufacture of soap,
edible oil, margarine, and other coconut oil-based products. It has a warehouse in
Sampaloc, Quezon, used as storage space for the copra purchased in Sampaloc and
nearby towns before the same is shipped to Makati. MMC goes to court to challenge the
validity of the ordinance, demanding the refund of the storage fees it paid under protest.

Is the ordinance valid? Explain your answer.

SUGGESTED ANSWER: Yes. The municipality is authorized to impose reasonable fees

and charges as a regulatory measure in an amount commensurate with the cost of
regulation, inspection and licensing. [Section 147, Local Government Code]. In the case
at bar, the storage of copra in any warehouse within the municipality can be the proper
subject of regulation pursuant to the police power granted to municipalities under the
Revised Administrative Code or the “general welfare clause.” A warehouse used for
keeping or storing copra is an establishment likely to endanger the public safety or likely
to give rise to conflagration because the oil content of the copra, when ignited, is difficult
to put under control by water and the use of chemicals is necessary to put out the fire. It
is, thus, reasonable that the Municipality impose storage fees for its own surveillance and
lookout. [Procter & Gamble Philippine Manufacturing Corporation v. Municipality of Jagna,
Province of Bohol, 94 SCRA 894]

Q4. Masarap Kumain Inc. (MKI) is a Value-Added Tax (VAT)-registered company

which has been engaged in the catering business for the past 10 years. It has invested a
substantial portion of its capital on flat wares, table linens, plates, chairs, catering
equipment, and delivery vans. MKI sold its first delivery van, already 10 years old and idle,
to Magpapala Gravel and Sand Corp. (MGSC), a corporation engaged in the business of
buying and selling gravel and sand. The selling price of the delivery van was way below
its acquisition cost.

Is the sale of the delivery van by MKI to MGSC subject to VAT? (2014 Bar)

SUGGESTED ANSWER: Yes, the sale of the delivery van is subject to VAT being a
transaction incidental to the catering business which is a VAT-registered activity of MKI.
Transactions that are undertaken incidental to the pursuit of a commercial or economic
activity are considered as entered into in the course of trade or business. A sale of a fully
depreciated vehicle that has been used in business is subject to VAT as incidental
transaction, although such sale may be considered isolated.
Q5. A inherited a two-storey building in Makati from his father, a real estate broker in
the 60s. A group of Tibetan monks approached A and offered to lease the building in order
to use it as a venue for their Buddhist rituals and ceremonies. A accepted the rental of P1
million for the whole year.

The following year, the City Assessor issued an assessment against A for non-payment
of real property taxes.

Is the assessor justified in assessing A’s deficiency real property taxes? Explain. (2010
Bar)

SUGGESTED ANSWER: No, the property is exempt from real property tax by virtue of
the beneficial use thereof by the Tibetan monks for their religious rituals and ceremonies.
A property that is actually, directly, and exclusively used for religious purposes is exempt
from the real property tax (Sec. 234, Local Government Code; Sec. 28(3), Article IV,
Philippine Constitution). The test of exemption from the tas is not ownership but the
beneficial use of the property. [City of Baguio v. Busuego, L-29772, Sept. 18, 1980]
 MERCANTILE LAW

Q1. In 2015, R Corp., a domestic company that is wholly owned by Filipinos files its
opposition to the applications for Mineral Production Sharing Agreements (MPSA) of O
Corp., P Corp., and Q Corp. which were pending before the Panel of Arbitrators (POA) of
the Department of Environmental and Natural Resources (DENR). The three corporations
wanted to undertake exploration and mining activities in the province of Isabela.
The oppositor alleged that at least 60% of the capital shareholdings of the applicants are
owned by B Corp., a 100% Chinese corporation, in violation of Sec. 2, Art. XII of the
Constitution. The applicants countered that they are qualified corporations as defined
under the Philippine Mining Act of 1995 and the Foreign Investments Act of 1991 since B
Corp. holds only 40% of the capital stocks in each of them and not 60% as alleged by R
Corp.

The summary of Significant Accounting policies statement of B Corp. reveals that the joint
venture agreement of B Corp. with Sigma Corp. and Delta Corp. involve the O Corp., P
Corp., and Q Corp. The ownership of the layered corporations and joint venture
agreements show that B Corp. practically exercises control over the O, P and Q
corporations contend that the control test should be applied and its MPSA applicants
granted. On the other hand , R Corp. argues that the “grandfather rule” should be applied.
Decide with reasons. (5%) (2016 BAR)

SUGGESTED ANSWER: The grandfather rule should apply. The Supreme Court held in
a similar case that even though on paper the capital shareholding in a mining company is
60% owned by Filipinos and 40% by foreigners, if there is a doubt as to the locus of the
beneficial ownership and control, the grandfather rule should apply. Based on the facts, B
Corporation, a Chinese corporation, practically exercises control over O, P and Q
Corporations. Such circumstance creates a doubt as to where control and beneficial
ownership reside that warrants application of the grandfather rule (Narra Nickel Mining
and Development Corporation v. Redmont Consolidated Mines Corp, GR No. 195580,
April 21, 2014).

Q2. Differentiate trademark, copyright and patent from each other. (6%) (2015 BAR)

SUGGESTED ANSWER:

a. As to definition :
i. Trademark is any visible sign capable of distinguishing goods
ii. Copyright is an incorporeal right granted by statute to the author or creator
of original literary and artistic works whereby he is invested for a limited
period of time with the right carry out, authorize and prevent the
reproduction, distribution, transformation, rental, public performance and
other forms of communication of his work to the public.
iii. Patent is any technical solution of any problem in any field of human activity
which is new, requires an inventive step and industrially applicable.
b. As to object
 i. The object of trademark are goods
ii. The object of copyright are original literary and artistic works
iii. The object of patent is invention
c. As to term
i. The term of trademark is ten years
ii. The term of copyright is generally 50 years
iii. The term of patent is 20 years from application
d. As to how acquired
i. Trademark is acquired through registration and use
ii. Copyright is acquired from the moment of creation
iii. Patent is acquired through application with the IPO

Q3. Antonio issued the following instrument:

August 10, 2013

Makati City
P100,000.00

Sixty days after date, I promise to pay Bobby or his designated representative the sum of
ONE HUNDRED THOUSAND PESOS (P100,000.00) from my BPI Acct. No. 1234 if, by
this due date, the sun still sets in the west to usher in the evening and rises in the east
the following morning to welcome the day.

(Sgd.) Antonio Reyes

Explain each requirement of negotiability present or absent in the instrument. (8%) (2013
Bar Question)

SUGGESTED ANSWER:

The instrument contains a promise to pay and was signed by the maker, Antonio Reyes
(Section 1(a) of Negotiable Instruments Law). The promise to pay is unconditional insofar
as the reference to the setting of the sun in the west in the evening and its rising in the
east in the morning are concerned. These are certain to happen (Section 4(c) of
Negotiable Instruments Law). The promise to pay is conditional, because the money will
be taken from a particular fund, BPI Account No. 1234 (Section 3 of Negotiable
Instruments Law). The Instrument contains a promise to pay a sum certain in money,
P100,000.00 (Section (b) of Negotiable Instruments Law). The money is payable at a
determinable future time, sixty days after August 10, 2013 (Section 4(a) of Negotiable
Instruments Law). The instrument is not payable to order or to bearer (Section 1(d) of
Negotiable Instruments Law).

Q4. Ciriaco leased a commercial apartment from Supreme Building Corporation (SBC).
One of the provisions of the one-year lease contract states:

―18.xxx The LESSEE shall not insure against fire the chattels, merchandise, textiles,
goods and effects placed at any stall or store or space in the leased premises without first
 obtaining the written consent of the LESSOR. If the LESSEE obtains fire insurance
coverage without the consent of the LESSOR, the insurance policy is deemed assigned
and transferred to the LESSOR for the latter’s benefit.‖

Notwithstanding the stipulation in the contract, without the consent of SBC, Ciriaco insured
the merchandise inside the leased premises against loss by fire in the amount of P500,
000 with First United Insurance Corporation (FUIC).

A day before the lease contract expired, fire broke out inside the leased premises,
damaging Ciriaco’s merchandise. Having learned of the insurance earlier procured by
Ciriaco, SBC demanded from FUIC that the proceeds of the insurance policy be paid
directly to it, as provided in the lease contract.

Who is legally entitled to receive the insurance proceeds? Explain. (4%)

SUGGESTED ANSWER: Ciriaco is entitled to receive the proceeds of the insurance

policy. The stipulation that the policy is deemed assigned and transferred to SBC is void,
because SBC has no insurable interest in the merchandise of Ciriaco (Cha v. Court of
Appeals, 277 SCRA 690 (1997))

Q5. One of the passenger buses owned by Continental Transit Corporation (CTC),
plying its usual route figured in a collision with another bus owned by Universal Transport,
Inc. (UTI). Among those injured inside the CTC bus were: Romeo, a stow away: Samuel,
a pickpocket then in the act of robbing his seatmate when the collision occurred; Teresita,
the bus driver’s mistress who usually accompanied the driver on his trips for free; and
Uriel, holder of a free riding pass he won in a raffle held by CTC.

Will a suit for breach of contract of carriage filed by Romeo, Samuel, Teresita, and Uriel
against CTC prosper? Explain. (3%)

SUGGESTED ANSWER: Romeo cannot sue for breach of contract of carriage. A

stowaway like Romeo, Who secures passage by fraud, is not a passenger (Vda. De nueca
v. Manial Railroad Company, 13 C.A. R. 49(1968)).

Samuel and Teresita cannot sue for breach of contract of carriage. The Elements in the
definition of a passenger are: an undertaking of a person to travel in the conveyance
provided by the carrier and an acceptance by the carrier of the person as a passenger.
(14 Am Jur 2d, Carriers, So. 714,p. 164). Samuel did not board the bus to be transported
but to commit robbery. Teresita did not board the bus to be transported but to accompany
the driver while he was performing his work.

Uriel can sue for breach of contract. He was a passenger although he was being
transported gratuitously, because he won a free riding pass in a raffle held by CTC (Article
1753, New Civil Code).
 CRIMINAL LAW

Q1. How are felonies committed? Explain each. (2015 Bar Question)

SUGGESTED ANSWER: Felonies are committed not only by means of deceit (dolo) but
also by means of fault (culpa). There is deceit when the act is performed with deliberate
intent; and there is fault when the wrongful act results from imprudence, negligence, lack
of foresight, or lack of skill (Article 4 of Revised Penal Code).

Q2. Charlie hated his classmate, Brad, because the latter was assiduously courting
Lily, Charlie’s girlfriend. Charlie went to a veterinarian and asked for some poison on the
pretext that it would be used to kill a very sick, old dog. Actually, Charlie intended to use
the poison on Brad.

The veterinarian mistakenly gave Charlie a non-toxic powder which, when mixed with
Brad’s food, did not kill Brad.

Did Charlie commit any crime? If so, what and why? If not, why not? (2009 Bar Question)

SUGGESTED ANSWER:

Charlie committed an impossible crime of murder. His act of mixing the non- toxic powder
with Brad’s food, done with intent to kill, would have constituted murder which is a crime
against persons, had it not been for the employment of a means which, unknown to him,
is ineffectual (Art. 4, par. 2, RPC).

Q3. Charges d'affaires Volvik of Latvia suffers from a psychotic disorder after he was
almost assassinated in his previous assignment. One day, while shopping in a mall, he
saw a group of shoppers whom he thought were the assassins who were out to kill him.
He asked for the gun of his escort and shot ten (10) people and wounded five (5) others
before he was subdued. The wounded persons required more than thirty (30) days of
medical treatment. What crime or crimes, if any, did he commit? Explain. (2016 Bar
Question)

SUGGESTED ANSWER:

Volvik committed five frustrated murders for the unwounded victims and five frustrated
murders for the wounded victims. The intent to kill can be seen in the nature of the weapon
used and extent of the wounds sustained by the five victims. Treachery also qualified the
crime to murder since the sudden attack rendered the victims defenseless. However, he
is immune from criminal prosecution since the position of Volvik as charges de affaires is
vested with blanket diplomatic immunity from criminal suit (Minucher v. Hon. CA, G.R. No.
142396, 11 February 2003).

Q4. Miss Reyes, a lady professor, caught Mariano, one of her students, cheating during
an examination. Aside from calling Mariano's attention, she confiscated his examination
booklet and sent him out of the room, causing Mariano extreme embarrassment.
 In class the following day, Mariano approached Miss Reyes and without any warning,
slapped her on the face. Mariano would have inflicted grave injuries on Miss Reyes had
not Dencio, another student, intervened. Mariano then turned his ire on Dencio and
punched him repeatedly, causing him injuries.

What crime or crimes, if any, did Mariano commit? (2013 Bar Question)

SUGGESTED ANSWER: Mariano is liable for two counts of direct assault. First, when he
slapped Miss Reyes, who is a person in authority expressly mentioned in Article 152 of
the Revised Penal Code, who was in the performance of her duties on the day of the
commission of the assault. Second, when he repeatedly punched Dencio, who became
an agent of the person in authority when he came to the aid of a person in authority, Miss
Reyes.

Q5. Dimas was arrested after a valid buy-bust operation. Macario, the policeman who
acted as poseur-buyer, inventoried and photographed ten (10) sachets of shabu in the
presence of a barangay tanod. The inventory was signed by Macario and the tanod, but
Dimas refused to sign. As Macario was stricken with flu the day after, he was able to
surrender the sachets to the PNP Crime Laboratory only after four (4) days. During pre-
trial, the counsel de oficio of Dimas stipulated that the substance contained in the sachets
examined by the forensic chemist is in fact methamphetamine hydrochloride or shabu.
Dimas was convicted of violating Section 5 of RA 9165. On appeal, Dimas questioned the
admissibility of the evidence because Macario failed to observe the requisite "chain of
custody" of the alleged "shabu" seized from him. On behalf of the State, the Solicitor
General claimed that despite non-compliance with some requirements, the prosecution
was able to show that the integrity of the substance was preserved. Moreover, even with
some deviations from the requirements, the counsel of Dimas stipulated that the
substance seized from Dimas was shabu so that the conviction should be affirmed. (2016
Bar Question)
a. What is the "chain of custody" requirement in drug offenses?
b. Rule on the contention of the State.

SUGGESTED ANSWER:

a. To establish the chain of custody, the prosecution must show the movements of
the dangerous drugs from its confiscation up to its presentation in court. The
purpose of establishing the chain of custody is to ensure the integrity of the corpus
delicti (People v. Magat, G.R. No. 179939, 29 September 2008). The following
links that must be established in the chain of custody in a buy-bust situation are:
first, the seizure and marking, if practicable, of the illegal drug recovered from the
accused by the apprehending officer; second, the turnover of the illegal drug
seized by the apprehending officer to the investigating officer; third, the turnover
by the investigating officer of the illegal drug to the forensic chemist for laboratory
examination; and fourth, the turnover and submission of the marked illegal drug
seized from the forensic chemist to the court.
 To establish the first link in the chain of custody, and that is the seizure of the drug
from the accused, the prosecution must comply with Section 21 of RA No. 9165,
which requires that the apprehending officer after the confiscation of drug must
immediately physically inventory and photograph the same in the presence of the
accused or the person from whom such items were confiscated, or his
representative or counsel, a representative from the media and the Department of
Justice (DOJ), and any elected public official who shall be required to sign the
copies of the inventory and be given a copy thereof and within twenty-four (24)
hours upon such confiscation, the drug shall be submitted to the PDEA Forensic
Laboratory for examination.

b. The contention of the State is meritorious. Macario, the policeman failed to comply
with Section 21 of RA No 9165 since the inventory and photograph of the drugs
was only made in the presence of barangay tanod and the same was not submit
PNP Crime Laboratory within 24 hours.

The rule is settled that failure to strictly comply with Section 21(1), Article II of R.A.
No. 9165 does not necessarily render an accused's arrest illegal or the items
seized or confiscated from him inadmissible. The most important factor is the
preservation of the integrity and evidentiary value of the seized item. Moreover,
the issue of non-compliance with Section 21 of RA No. 9165 cannot be raised for
the first time on appeal (People v. Badilla, G.R. No. 218578, August 31, 2016).
 REMEDIAL LAW

Q1. What is the doctrine of hierarchy of courts? (2017 Bar Question)

SUGGESTED ANSWER: The doctrine of hierarchy of courts provides that where there is
a concurrence of jurisdiction by courts over an action or proceeding, there is an ordained
sequence of recourse to such courts beginning from the lowest to the highest. A direct
invocation of the Supreme Court’s original jurisdiction should be allowed only when there
are special and important reasons therefor. [Montes v. Court of Appeals, G.R. No. 143797,
4 May 2006]

Q2. Compare the certiorari jurisdiction of the Supreme Court under the Constitution
with that under Rule 65 of the Rules of Civil Procedure. (2009 Bar Question)

SUGGESTED ANSWER: Under the Constitution, the certiorari jurisdiction of the Supreme
Court provides for its expanded jurisdiction power of judicial power over [governs] all
branches or instrumentalities of the government where is a grave abuse of discretion
amounting to lack or excess of jurisdiction, as [agencies and instrumentalities] provided in
Section 1, second par., Art. VIII of the 1987 Constitution. The petition is filed under Rule
45 of the Rules of Court, and [The writ is directed not only to tribunal, board or officer
exercising judicial or quasi-judicial functions. And] the period fixed for availing of the
remedy is within 30 days from receipt of the copy of the decision, order or ruling in question
(Sec. 7, Art. IX).

But under Rule 65 of the Rules of Court, the certiorari jurisdiction of the Supreme Court is
limited to acts done without or in excess of jurisdiction or grave abuse of discretion
amounting to lack or excess of jurisdiction, by a tribunal, board or officer exercising judicial
or quasi- judicial functions only. And the period fixed for availing of the remedy is not later
than 60 days from notice of judgment; order or resolution in question (Secs. 1 and 4, Rule
65, Rules of Court).

Q3. What are the contents of a judicial affidavit? (2016 Bar Question)

SUGGESTED ANSWER: A judicial affidavit shall be prepared in the language known to

the witness and, if not in English or Filipino, accompanied by a translation in English or
Filipino, and shall contain the following: (a) The name, age, residence or business
address, and occupation of the witness; (b) The name and address of the lawyer who
conducts or supervises the examination of the witness and the place where the
examination is being held; (c) A statement that the witness is answering the questions
asked of him, fully conscious that he does so under oath, and that he may face criminal
liability for false testimony or perjury; (d) Questions asked of the witness and his
corresponding answers, consecutively numbered, that: (1) Show the circumstances under
which the witness acquired the facts upon which he testifies; (2) Elicit from him those facts
which are relevant to the issues that the case presents; and (3) Identify the attached
documentary and object evidence and establish their authenticity in accordance with the
 Rules of Court; (e) The signature of the witness over his printed name; and (f) A jurat with
the signature of the notary public who administers the oath or an officer who is authorized
by law to administer the same (Section 3, A.M. No. 12-8-8 SC, Judicial Affidavit Rule).

Q4. Police officers arrested Mr. Druggie in a buy-bust operation and confiscated from
him 10 sachets of shabu and several marked genuine peso bills worth ₱5,000.00 used as
the buy-bust money during the buy-bust operation.

At the trial of Mr. Druggie for violation of R.A. No. 9165 (Comprehensive Dangerous Drug
Act of 2002), the Prosecution offered in evidence, among others, photocopies of the
confiscated marked genuine peso bills. The photocopies were offered to prove that Mr.
Druggie had engaged at the time of his arrest in the illegal selling of dangerous drugs.

Invoking the Best Evidence Rule, Atty. Maya Bang, the defense counsel, objected to the
admissibility of the photocopies of the confiscated marked genuine peso bills.

Should the trial judge sustain the objection of the defense counsel? Briefly explain your
answer.

SUGGESTED ANSWER: No, the trial judge should not sustain the objection that invokes
the best evidence rule.

The Supreme Court has held that the best evidence rule applies only to documentary
evidence, not to object or testimonial evidence.

Here the marked money is object not documentary evidence since it is being offered to
prove not its contents but its existence and use in the buy-bust operation. [People v.
Tandoy, 192 SCRA 28 (1990)]

Q5. An heir/oppositor in a probate proceeding filed a motion to remove the

administrator on the grounds of neglect of duties as administrator and absence from the
country. On his part the heir/oppositor served written interrogatories to the administrator
preparatory to presenting the latter as a witness. The administrator objected, insisting that
the modes of discovery apply only to ordinary civil actions, not special proceedings. Rule
on the matter. (2008 BAR QUESTION)

SUGGESTED ANSWER: The administrator’s contention that the modes of discovery

apply only to ordinary civil actions and not to special proceedings is not correct. Section
2, Rule 72 of the Rules of Court provides that: “In the absence of special provisions, the
rules provided for in ordinary civil actions shall be, as far as practicable, applicable in
special proceedings.” There is no provision to the contrary that would preclude the
application of the modes of discovery, specifically Interrogatories to Parties under Rule 25
of the Rules, to probate proceedings.
 LEGAL ETHICS

Q1. Atty. Gelly passed the Bar 1n 1975. After taking his oath, he did not enlist in any
IBP chapter because he went to the USA to pursue a master’s degree. Eventually, he
passed the state bar and specialized in Immigration law. In 2005, he returned to the
Philippines and was, but the IBP is charging him from 1975 up to the present and
threatening him with expulsion if he does not comply. Is the IBP correct? (2012 Bar
Question)

SUGGESTED ANSWER: Atty. Gelly should pay the dues from 1975 to the present since
membership to the IBP is compulsory. [In re: Letter of Atty. Cecilio Arevalo, B.M. No. 1370,
May 9, 2005]

Q2. Rebecca’s complaint was raffled to the sala of Judge A. Rebecca is a daughter of
Judge A’s wife by a previous marriage. This is known to the defendant who does not,
however, file a motion to inhibit the Judge.

Is the Judge justified in not inhibiting himself from the case? (3%) (2010 Bar Question)

SUGGESTED ANSWER: The judge is not justified in not inhibiting himself. It is mandatory
for him to inhibit if he is related to any of the parties by consanguinity or affinity within the
sixth civil degree (Sec. 3 [f] Canon 3, New Code of Judicial Conduct for the Philippine
Judiciary). Judge A, being the stepfather of Rebecca, is related to her by affinity by just
one degree. “Judges shall disqualify themselves from participating in any proceeding in
which they are unable to decide the matter impartially or in which it may appear to a
reasonable observer that they are unable to decide the matter impartially” (Id., Sec. 5,
Canon 3). The fact that Rebecca is a daughter of Judge A’s wife is liable to make a
reasonable observer doubt his impartially.

Q3. Atty. Dennis is the head of the Provincial DILG Office in Sultan Kudarat. In view
of the lack of lawyers and notaries public in the province and because of numerous
requests that the DILG provide a notary public, Atty. Dennis was constrained to apply for
a commission for the RTC, which was granted. He was able to notarize thousand of
documents and affidavits until Atty. Antonio, the only notary public in the province, charged
Atty. Dennis with misconduct and violation of the CPR. Is the charge correct? Explain.
(5%) (2016 Bar Question)

SUGGESTED ANSWER: The performance of the duties of a notary public constitutes

practice of law. A lawyer in the government service may either be prohibited from
practicing law during his tenure or allowed to practice but subject to some restrictions.
There is no law prohibiting a Provincial DILG Officer from practicing his profession. But
as a Civil Service officer, he can do so only with the consent of his Department Head (Catu
v. Rellosa, A.C. No. 5738. Feb. 19, 2008).

Q4. Atty. Hyde, a bachelor, practices law in the Philippines. On long weekends, he
dates beautiful actresses in Hong Kong. Kristine, a neighbor in the Philippines, filed with
the Supreme Court an administrative complaint against the lawyer because of sex videos
 uploaded through the internet showing Atty. Hyde’s sordid dalliance with the actresses in
Hong Kong.

In his answer, Atty. Hyde (1) questions the legal personality and interest of Kristine to
institute the complaint and (2) insists that he is a bachelor and the sex videos relate to his
private life which is outside public scrutiny and have nothing to do with his law practice.

Rule on the validity of Atty. Hyde’s defenses. (5%) (2009 Bar Question)

SUGGESTED ANSWER:

1. The legal personality and interest of Kristine to initiate the complaint for disbarment
is immaterial. A disbarment proceeding is sui generis, neither a civil nor a criminal
proceeding. Its sole purpose is to determine whether or not a lawyer is still
deserving to be a member of the bar. In a real sense, Kristine is not a plaintiff;
hence, interest on her part is not required.

2. Atty. Hyde’s second is untenable. His duty not to engage in unlawful, dishonest,
immoral and deceitful conduct under Rule 1.01 of the CPR, as well as his duty not
to engage in scandalous conduct to the discredit of the legal profession under Rule
7.03, is applicable to his private as well as to his professional life.

Q5. Identify three of the canons under the New Code of Judicial Conduct of the
Philippine Judiciary.

SUGGESTED ANSWER:
Canon 1. -- Independence
Canon 2. -- Integrity
Canon 3. -- Impartiality
Canon 4. -- Propriety
Canon 5. -- Equality
Canon 6. -- Competence and Diligence.