MIDTERM EXAM FOR REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

ESSAY. ANSWER WITH LEGAL BASIS AND USE LOGIC AND COMMON SENSE IN ANALYZING THE
QUESTIONS. MAKE A SHORT AND CONCISE ANSWER TO EVERY QUESTION.

1. WHAT IS THE PURPOSE OR OBJECTIVE OF BP. 22?

-Batas Pambansa Blg. 22 is known as an act of penalizing the making or drawing and issuance of
check without sufficient funds or credit and for other purposes. It's purpose is to protect the business as
well as the public in general, and prevent the circulations of a worthless check. It is the main intention of
the law to make the issuer of a worthless check liable since the introduction of worthless check is
harmful to the economy.

2. ANTHONY ISSUSED A CHECK WORTH 1 MILLION PESOS TO ANTONIA TO PAY FOR THE DIAMOND
STUDDED WATCH THAT ANTONIA HAVE SOLD TO HIM. ANTONIA WENT TO THE BANK TO ENCASH THE
CHECK UPON PRESENTMENT OF THE CHECK, THE BANK DISHONORED IT DUE TO INSUFFICIENCY OF
FUNDS.

a) What should the bank do to the dishonored check?

-Upon presentment, the role of the bank to cause to be written, printed or stamped in plain
language thereon or attached thereto the reason for drawees dishonor of refusal to pay the same
provided, that where there are no sufficient funds in or credit with such drawee bank, such fact shall
always be explicitly stated in the notice of dishonor or refusal.

b) What should Anthony do in this situation?

-Anthony must cover the amount of sufficient funds or to maintain a credit to cover the full
amount of the check presented within a period of ninety days from the date appearing thereon, by
which check is dishonored or else Anthony pays the drawee bank thereof the amount due thereon, or
makes arrangements for payment to the drawee within five banking days after receiving notice that
such check has not been paid by Antonia because if Anthony fails to do so, a penalty shall be imposed
according to Section of Batas Pambansa Blg. 22.

c) What should the bank do to Antonia?

-Under Batas Pambansa No. 22 The bank would send a notice to Anthony stating that the
check he issued was dishonored for the reason that his checking account has insufficient fund. Anthony
is now liable for the amount of the check.

d) What should Antonia do in this case?

 -Prima facie evidence of deceit exists by law upon proof that the drawer of the check failed to
deposit the amount necessary to cover his check within three days from receipt of the notice of
dishonor. The key issue is whether the complainant would have parted with his money, property or any
other object of the transaction were it not for the issuance of the check, which turns out to be
unfunded.

3. WHAT IS THE FUNCTION OF NPC IN RA 10173?

-Under Republic 10173 or also known as Data Privacy Act of 2012, Chapter II Section 7, The
Functions of the National Privacy Commission is to administer and implement the provisions of this Act,
and to monitor and ensure compliance of the country with international standards set for data
protection.

4. WHAT ARE THE ACTS COVERED BY DPA IN THE DATA PRIVACY ACT?

-The Data Protection Act covers the processing of all 'Personal Data'. This is data which constitutes
information relating to a living individual, and from which the individual is identifiable, so data held
purely in an anonymised form is not covered. This Act provides individuals with rights, including the right
to know what information is held about them and the right to access that information and states that
anyone who processes personal information must comply with the principles in the Act

5. WHAT SHOULD BE DONE IN THE EVENT OF A DATA BREACH?

-Notify the supervisory authority without undue delay and at the latest within 72 hours after
having become aware of the breach. If your company/organisation is a data processor it must notify
every data breach to the data controller. If the data breach poses a high risk to those individuals
affected then they should all also be informed, unless there are effective technical and organisational
protection measures that have been put in place, or other measures that ensure that the risk is no
longer likely to materialise.

6. WHAT IS A DPO AND WHAT ARE ITS FUNCTIONS? (DATA PRIVACY ACT)

-DPO is a Data Protection Officer is an enterprise security leadership role required by the General
Data Regulation. Its function is to ensure that her organisation processes the personal data of its staff,
customers, providers or any other individuals in compliance with the applicable data protection rules.
DPO is also responsible for overseeing an organization's data protection strategy and implementation.
They also ensure if the organization is complying with the GDPR's requirements.

7. HOW TO COMPLY WITH THE DATA PRIVACY ACT?

-To comply with the Data Privacy Act , the data must be collected and used fairly and within the
law, can only be used the way it is registered with the Information Commissioner, the information held
must be adequate for its purpose and must be up-to-date, data must not be stored longer than needed
and must be used in line with the rights set out in the Data Protection Act. The information must be safe
and stored away from unauthorized access.
8. WHAT IS THE EFFECT OF THE ELECTRONIC SIGNATURE PLACED ON THE ELECTRONIC DOCUMENT?

-According to R.A. 10173 section 8, An electronic signature on the electronic document shall be
equivalent to the signature of a person on a written document if that signature is proved by showing
that a prescribed procedure, not alterable by the parties interested in the electronic document.
Provided that an electronic signature was the signature of the person to whom it correlates and was
affixed by that person with the intention of signing or approving the document.

9. WHEN CAN TRANSACTION BE CONSIDERED CONSUMMATED DURING TRANSACTIONS MADE

THROUGH NETWORKING AMONG BANKS OR LINKAGES THEREOF WITH OTHER ENTITIES OR NETWORK?

-Under Republic Act No. 8792 Chapter III Section 16 Paragraph II, electronic transactions made
through networking among banks, or linkages thereof with other entities or networks, and vice versa,
shall be deemed consummated upon the actual dispensing of cash or the debit of one account and the
corresponding credit to another, whether such transaction is initiated by the depositor or by an
authorized collecting party: Provided, that the obligation of one bank, entity, or person similarly situated
to another arising therefrom shall be considered absolute and shall not be subjected to the process of
preference of credits.

10. SUMMARIZE SECTION 28 OF THE E-COMMERCE ACT FOCUSING ON THE RPWeb

-Section 28 of the E-Commerce Act mandates RPWeb to be implemented. RPWeb is a strategy

that intends to connect all government offices to the internet and provide universal access to the
general public.

11. HOW DO YOU AUTHENTICATE THE DIGITAL SIGNATURE OR ELECTRONIC SIGNATURE PLACED ON THE
ELECTRONIC DOCUMENT?

-Under Republic Act No. 8792 Chapter II Section 11, In authenticating the digital signature
placed on the electric document it shall be authenticated by demonstrating, substantiating and
validating a claimed identity of a user, device, or another entity is an information or communication
system, among other ways, as follows;(a) The electronic signature shall be authenticated by proof than a
letter , character, number or other symbol in electronic form representing the persons named in and
attached to. Other way of authenticating is by providing the legal identification card of the later.

12. WHO RETAINS BENEFICIAL INTEREST IN MORTGAGE? WHY?

-In the contract of mortgage, the DEBTOR retains beneficial interest over the property
notwithstanding the encumbrance, since the mortgage only serves to secure the fulfillment of the
principal obligation. Even if the debtor defaults, it does not operate to vest in the creditor the ownership
of the property; the creditor must still resort to foreclosure proceedings. So the mortgaged property
may still be levied upon by the sheriff to satisfy the judgment debtor's obligations.

13. EXPLAIN WHY THE INDIVISIBILITY OF A PLEDGE OR MORTGAGE IS NOT AFFECTED BY THE FACT THAT
THE DEBTORS ARE NOT SOLIDARILY LIABLE
 -Under Article 2090. The indivisibility of a pledge or mortgage is not affected by the fact that the
debtors are not solidarily liable.

PLEDGE OR MORTGAGE INDIVISIBLE

Rule applies even if the obligation is joint and not solidary

The divisibility of the principal obligation doesn't affect the indivisibility of the mortgage or pledge

EXCEPTIONS TO THE RULE OF INDIVISIBILITY

1. Where each one of several things guarantees determinate portions of credit

2. Where only a portion of the loan was released

3. Where there was failure of consideration

4. Where there is no debtor-creditor relationship

14. IN A CONTRACT OF PLEDGE, WHO HAS THE RIGHT OF POSSESSION OF THE THING PLEDGED? WHY?

-Under Article 2098. The contract of pledge gives a right to the creditor to retain the thing in his
possession or in that of a third person to whom it has been delivered, until the debt is paid. This right is
limited only to the fulfilment of the principal obligation for which the pledge was created

15. IN A CONTRACT OF ANTICHRESIS, WHO IS OBLIGED TO PAY THE TAXES AND THE CHARGES OF THE
ESTATE?

-Unless there is stipulation to the contrary, the CREDITOR is obliged to pay the taxes and charges
upon the estate according to Article 2135.

16. YOU WENT TO BANCO KAYAMANAN TO ASK FOR A LOAN OF TWO MILLION PESOS. WHAT KIND OF
CONTRACT WILL YOU GET FROM THE BANK IN CASE THE BANK APPROVES YOUR LOAN? WHAT WILL THE
BANK REQUIRE FROM YOU IN ORDER THAT THEY WILL APPROVE YOUR LOAN?

- The nature of the contract being agreed upon by the bank and I will be a Contract of Mortgage
for a loan amounting 2,000,000 pesos for the Bank will need a collateral in the form of real estate
property of ample value to compensate for such grand loan. The bank will require me to present
documents regarding the land or property I will be mortgaging for they will need to secure themselves if
ever I will become insolvent in paying my dues out of the aforementioned amount and as stated in the
contract we have established.
BONUS QUESTION: NAME OF THE BARANGAY WHERE I LIVE IN BOGO CITY?

-SAMBAG, BOGO CITY, CEBU