1. An Act Strengthening Consumer Protection in the
Purchase of Brand-New Motor Vehicles is also known as:
a. The Recto Law
b. E-Commerce Act
c. Consumer Protection Act
d. Philippine Lemon Law
2. 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. Unenforceable.
c. Void.
d. Valid.
3. B bought a car on the installment plan, and as security,
executed a chattel mortgage on it. B faulted to pay two
installments. The seller foreclosed the mortgage, but the
sum he obtained was less than what B still owed him. It
has been previously agreed in the deed of sale that B
would be liable for any deficiency in this matter. May the
seller still sue for the deficiency?
a. Yes, under the doctrine of unjust enrichment.
b. No, for the law says that after foreclosure, the
seller-mortgagee shall have no further action
against the purchaser to recover any unpaid
balance of the price irrespective of whether there
was stipulation that B would be liable for any
deficiency.
c. Yes, under the principle of equity.
d. No, for the law says that after foreclosure, the
seller-mortgagee shall have no further action
against the purchaser to recover any unpaid
balance of the price. The contrary stipulation in
their contract is VOID.
4. B bought a residential condominium apartment from D.
He was able to pay 2 years of installments but failed to
pay the succeeding installments. What rights does B have
in the given circumstance?
a. B has no right because of his default and he has
to vacate the condominium.
b. If the contract is canceled, D shall refund to B
the cash surrender value of the payments on the
property equivalent to 25% of the total payments
made
c. To pay, without additional interest, the unpaid
installments due within the total grace period
earned by him which is one month grace period
for every one year of installment payments
made.
d. To pay with additional interest of 6% the unpaid
installments.
5. B bought on installment a car and executed a chattel
mortgage on the same in favor of the seller S as security
for the unpaid balance of the price. They agreed that B
shall be liable for any deficiency that may arise after
foreclosure of mortgage. B failed to pay two installments.
S filed a case for collection of the unpaid balance and
attached the car and other assets of B.
a. S can attach the car and other assets of B because
the Recto Law applies only in case of foreclosure
of real mortgage;
b. S cannot attach the other assets of B because B
has no deficiency liability under the Recto law.
c. S cannot go after the other assets of B as this is
provided for under the Recto Law in case of the
seller exacting specific performance of the
buyer’s obligation to pay.(1484)
d. S can attach all the assets of B in exacting
fulfillment of B’s obligation to pay.
6. Can future inheritance be the subject of a contract of sale?
a. Yes, since the death of the decedent is certain to
occur.
b. Yes, but on the condition that the amount of the
inheritance can only be ascertained after the
obligations of the estate have been paid.
c. No, since the seller owns no inheritance while
his predecessor lives.
d. No, since it will put the predecessor at the risk of
harm from a tempted buyer, contrary to public
policy.
7. Catriona bought a Sony radio from Sam but he defaulted
in the payment of two installments. May Sam ask for the
cancellation of the sale?
a. Yes, because two installments are already in
default.
b. No, because there was no stipulation to that
effect.
c. Yes, regardless of the default in payment.
d. No, because Catriona and Sam are best of
friends.
8. Conventional redemption is also called the right to
redeem.
There cannot be conventional redemption unless it has
been stipulated upon in the contract.
a. Both statements are true.
b. Second statement is true, first is not.
c. Both statements are false.
d. First statement is true, second is not.
9. Conventional Redemption shall take place when the
vendor reserves the right to repurchase the thing sold,
with the obligation to comply with the provision of Art.
1616 and other stipulations which may have been agreed
upon.
Legal redemption is the right to be subrogated, upon the
same terms and conditions stipulated in the contract, in
the place of one who acquires a thing by purchase or
dation in payment, or by any other transaction whereby
ownership is transmitted by onerous title.
a. First statement is true, second statement is false.
b. Both statements are true.
c. First statement is false, second statement is true.
 d. Both statements are false.

10. Even in the absence of doubt, a sale with right of

repurchase is presumed to an equitable mortgage.

In conventional redemption, it is not necessary that the

parties agree upon the period within which redemption
may be exercised.
a. Both statements are correct.
b. Both are incorrect.
c. First is false, second is true.
d. First is true, second is incorrect.