Acctg 202B

2nd PreBoard
Special Laws

General Instruction: Summarize your Answers and Submit before

October 16, 2021.

PART I IDENTIFICATION

1. A person, either natural or juridical, who adhering to the

principles set forth in the Philippine Cooperative Code and in the Articles of
Cooperative, has been admitted by the cooperative as member.

2. Is one who has complied with all the membership requirements

and entitled to all the rights and privileges of membership.

3. It means the full membership of the cooperative duly assembled

for the purpose of exercising all the right and performing all the obligations
pertaining to cooperatives.

4. A cooperative which engages in the supply of production inputs

and markets their products.

5. A cooperative whose primary purpose id procure and distribute

commodities to members and non-members.

6. It means the operative act granting juridical personality to a

proposed cooperative and is evidenced by a certificate of registration.

7. It means full membership of a body of representatives elected by

each of the sectors, chapter or district, or the cooperative duly assembled
for the purpose of exercising such powers lawfully delegated unto them by
the general assembly in accordance with its bylaws.

8. It includes cooperative undertaking activities which are related

to its main line of business or purpose.

9. It means the amount due to any bonafide depositor for

legitimate deposits in an insured bank as of the date of closure but not to
exceed P500,000.
 10. It includes credits or deposits of money, bullion, security, or
other evidence of indebtedness of any kind, and interest thereon with banks,
buildings and loan associations, and trust corporations in favor of any person
known to be dead or who has not made further deposits or withdrawals
during the preceding ten years or more.

11. It refers to the judicial process in which the State, by virtue of its
sovereignty, steps in and claims abandoned, left vacant, or unclaimed
property, without there being an interested person having a legal claim
thereto.

12. It is committed by any person who, knowing that any monetary

instrument or property represents, involves, or relates to proceeds of any
unlawful activity transacts said monetary instrument or property.

13. It refers to business authorized by the appropriate government

agency to engage in gaming operations.

14. Any person, who at the filing date of application, had the right to
the patent.

15. It is the name or designation identifying or distinguishing an

enterprise.

16. Are original intellectual creations in the literary and artistic

domain protected from the moment of their creation.

17. It shall serve as a central system to receive applications and

capture application date involving business-related transactions, including
primary and secondary licenses, and business clearances, permits,
certifications or authorizations issued by the LGUs.

18. Any regulation, rule, or administrative procedure or system that

is ineffective or detrimental in aching its intended objectives and as a result,
produces slow, suboptimal, and undesirable social outcomes.

19. It refers to a person by whom, or on whose behalf, the electronic

document purports to have been created, generated and/or sent.

20. It refers to an individual whose personal information is

processed.
 21. An organized market place or facility that brings together buyers
and sellers and executes trade of securities and/or commodities.

22. A contract, transaction, or scheme whereby a person invests his

money in common enterprise and is led to expect profits primarily from the
efforts of other.

23. A publicly announced intention by a person acting alone or in

concert with other persons to acquire equity securities of a public company.

24. It involves the trading of securities based on knowledge of

material information not disclosed to the public at the time.

25. It focuses on the similarity of the prevalent features of the

competing trademarks which might cause confusion or deception and thus
constitutes infringement.

26. The minimum paid up share capital of a primary cooperative

shall be 25% of the subscription but not less than?

27. It is the transfer of possession of the original or a copy of a work

or sound recording for a limited period, for non-profit purposes, by an
institution the services of which are available to the public, such as public
library or archive.

28. An artistic creation with utilitarian functions or incorporated in a

useful article, whether made by hand or produced in an industrial scale.

29. The transfer of possession of the original of a copy of a work or a

sound recording for a limited period of time for-profit making purposes.

30. It refers to information generated, sent, received, or stored by

electronic, optical or similar means.

PART II TRUE OR FALSE

Instruction: Write the Words TRUE or FALSE, do not use Letters T or F
only.

1. The approval of licenses, clearances, permits, certifications or

authorizations for the installation and operation of telecommunication,
broadcast towers, facilities, equipment and service shall be a total of ten
working days for those issued by barangays, LGUs and NGAs.
2. If a government office or agency fails to act on an application or
request for renewal of a license, clearance, permit, certification or
authorization subject for renewal within the prescribed processing time, said
license, clearance, permit, certification or authorization shall automatically
be extended.

3. Any denial of application or request for access to government service

shall be fully explained in writing, stating the name of the person making the
denial and the grounds upon which such denial is based.

4. The head of the office shall not be held accountable to the public in
rendering fast, efficient, convenient and reliable service.

5. The person seeking to introduce an electronic data message or

electronic document in any legal proceeding has the burden of proving its
authenticity by evidence capable of supporting a finding that the electronic
date message or document is what the person claims it to be.

6. In any proceedings involving an electronic signature, it cannot be

simply assumed that the electronic signature is the signature of the person
to whom it correlates.

7. Electronic document shall have the legal effect, validity or

enforceability as any other document or legal writing.

8. Electronic commerce act shall apply to any kind of data message and
electronic document used in context of commercial activities to include
domestic and international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage of information.

9. A personal information controller may not subcontract the processing

of personal information.

10. Personal information controllers may not invoke the principle of

privileged communication over privileged information that they lawfully
control or process.

11. The lawful heirs and assigns of the date subject may invoke the rights
of the data subject for, which he or she is an heir or assignee at any time
after the death of the data subject or is incapacitated.

12. Data privacy Act shall not apply to Personal information processed for
journalistic, artistic, literary or research purposes.
13. Moral rights are assignable or subject to license.

14. The first sale of an authorized copy of the work exhausts the author’s
right to control distribution of copies.

15. Copyright can cover only the works falling within the statutory
enumeration or description.

16. Trademark is a creation of use and, therefore, actual use is a pre-

requisite to exclusive ownership; registration is only an administrative
confirmation of the existence of the right of ownership of the mark, but does
not perfect such right; actual use thereof is the perfecting ingredient.

17. In order to infringe a patent, a machine or device must perfume the

same function, or accomplish the same result by identical or substantially
identical means and the principle or mode of operation must be substantially
the same.

18. A person entitled of copyright must be the original creator of the work.

19. In copyright, the format or mechanics of a television show is included

in the list of protected works.

20. In case of works of applied art, the protection shall be for a period of
25 years from the date of registration.

21. In case of works of joint ownership, the economic rights shall be

protected during the life of the last surviving author and for 50 years after
the death of the other author.

22. When an author contributes to a collective work, his right to have his
contribution attributed to him is deemed waived unless he expressly
reserves it.

23. In case of work created by an author during and in the course of his
employment, the copyright shall belong to the employer, even if the creation
of the object of copyright is not part of his regular duties and even if the
employee uses the time, facilities, and materials of the employer.

24. In case of works of joint authorship, the co-authors shall be the

original owners of the copyright and in the absence of agreement, their
rights shall be governed by the rules on partnership.
25. No copyright shall subsist in any work of the Government of the
Philippines.

26. Works are protected by the sole fact of the creation, irrespective of
their mode or form of expression, as well as of their content, quality and
purpose.

27. A registered mark shall have no effect against any person who, in
good faith, before the filling date, was using the mark for the purposes of his
business or enterprise.

28. Non-use of mark may be excused if caused by circumstances arising

independently of will of the trademark owner. Lack of funds shall excuse
non-use of a mark.

29. The assignment of the application for registration of a mark, or of its

registration, can be made orally or in writing.

30. In case of the use of identical sign for identical or unidentical goods or
services, a likelihood of confusion shall be presumed.

31. The nature of the goods to which the mark is applied will not constitute
an obstacle to registration.

32. In infringement of trademark, fraudulent intent is necessary.

33. In unfair competition fraudulent intent in not essential.

34. In infringement of trademark, the prior registration of the trademark is

a prerequisite to the action.

35. A certificate of registration of a mark shall be conclusive evidence of

the validity of the registration, the registrant’s ownership of the mark, and of
the registrant’s exclusive right to use the same.

36. Damages cannot be recovered for acts of infringement committed

before the infringer had known; or had reasonable grounds to know of the
patent.

37. Anyone who actively induces the infringement of a patent or provides

the infringer with a component of a patented product or of a product
produced because of a patented process knowing it to be especially adopted
for infringing the patented invention and not suitable for substantial non-
infringing use shall be liable as a contributory infringer and shall be jointly
liable with the infringer.

38. Patent owners shall also have the right to assign, or transfer by
succession the patent, and to conclude licensing contracts for the same.

39. To maintain the patent application or patent, an annual fee shall be

paid upon the expiration of 4 years from the date the application was
published.

40. After publication of a patent application, any interested party may

inspect the application documents filed with the Intellectual Property Office.

41. No patent may be granted unless the application identifies the

inventor.

42. An applicant who is not a resident of the Philippines may freely register
a patent.

43. The right to a patent belongs to the inventor only.

44. An invention shall not be considered new if it forms part of a prior art.

45. All records of all transactions of covered institutions shall be

maintained and safely stored for 10 years from the date of transaction.

46. The unclaimed balances, together with the increase and proceeds
thereof, shall be deposited with the treasurer of the Philippines to the credit
of the Government of the Republic of the Philippines.

47. The Secrecy of Bank Deposit Account prohibits attachment or

garnishment of bank accounts, even if does not involve revealing specific
information of deposits.

48. It shall be unlawful for any official or employee of a banking institution

to disclose to any person any information concerning deposits.

49. All deposits of whatever nature with banks or banking institutions in

the Philippines may not be examined, inquired or looked into by any person,
except for government official, bureau or office.

50. The receiver shall have no authority to invest funds received from the
conversion of the assets of the closed bank in government securities, other
government-guaranteed marketable securities or investment-grade debt
instruments.

PART III MCQ Use CAPITAL LETTERS

1. X is a depositor of AAA Bank. She has three (3) deposit accounts all
under her name. One, in checking account, one in saving account and
another one in time deposit account. Each account has a balance of
Php250,000. AAA Bank became insolvent. Philippine Deposit Insurance
Corporation closed the Bank. X therefore is unable to withdraw from all of
the accounts. She then filed her claims with the Philippine Deposit Insurance
Corporation. Which statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.

2. The Bank Secrecy Law (RA 1405) prohibits disclosing any information
about deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.

3. X works as a research computer engineer with the Institute of

Computer Technology, a government agency. When not busy with his work,
but during office hours, he developed a software program for law firms that
will allow efficient monitoring of the cases, which software program is not at
all related to his work. Assuming the program is patentable, who has the
right over the patent?
a. X;
b. Institute of Computer Technology;
c. Neither X nor the Institute of Computer Technology can claim patent
right over the invention
d. X and the employer of X will jointly have the rights over the patent.

4. The "test of dominancy" in the Law on Trademarks, is a way to

determine whether there exists an infringement of a trademark by -
a. Determining if the use of the mark has been dominant in the market.
b. Focusing on the similarity of the prevalent features of the competing
marks which might create confusion.
c. Looking at the mark whether they are similar in size, form or color.
d. Looking at the mark whether there is one specific feature that is
dominant.

5. X's painting of Madonna and Child was used by her mother to print
some personalized gift wrapper. As part of her mother's efforts to raise
funds for Bantay Bata, the mother of X sold the wrapper to friends. Y, an
entrepreneur, liked the painting in the wrapper and made many copies and
sold the same through National Bookstore. Which statement is most
accurate?
a. Y can use the painting for his use because this is not a copyrightable
material.
b. X can sue Y for infringement because artistic works are protected from
moment of creation.
c. Works of art need to be copyrighted also to get protection under the
law.
d. Y can use the drawing even though not copyrighted because it is
already a public property having been published already.

6. Compulsory Licensing of Inventions which are duly patented may be

dispensed with or will be allowed exploitation even without agreement of the
patent owner under certain circumstances, like national emergency, for
reason of public interest, like national security, etc. The person who can
grant such authority is -
a. the Director General of the Intellectual Property Office;
b. the Director of Legal Affairs of the Intellectual Property Office;
c. the owner of the Patent right;
d. Any agent of the owner of the Patent right.

7. The Anti-Money Laundering Law is a law that seeks to prevent money

laundering activities by providing for more transparency in the Philippine
Financial System, hence the following institutions are covered by the law,
except:
a. Bank and any financial institutions;
b. Pawnshops;
c. Casino operators;
d. All of the above.

8. For purposes of determining violation of the provisions of Anti-Money

Laundering Law, a transaction is considered as a "Suspicious Transaction"
with "Covered Institutions" regardless of the amount involved, where which
the following circumstances exist/s?
a. the amount involved is not commensurate with the client's business or
financial capacity;
b. there is no underlying legal or trade obligation, purpose or economic
justification;
c. client is not properly identified;
d. All of the above.

9. 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.

10. 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.

11. X is being charged for violation of Anti-Graft and Corrupt Practices

because he is suspected of having accumulated unexplained wealth. X
maintains deposit accounts with ABC Bank. The Ombudsman filed criminal
cases against X before the Sandiganbayan. Can the Court issue subpoenas
against ABC Bank to produce all documents pertaining to all the deposit
accounts of X?

a. Yes, because there is already a pending case and provided the

subpoena must be specific as to which account.
b. Yes, it is enough that the specific bank is identified.
c. No, because the issuance of the subpoena has no real legal basis.
d. Even without a subpoena, information about the deposit accounts of X
can be submitted to the Sandiganbayan because it will be used in a pending
case.

12. X, a private individual, maintains a dollar deposit with ABC Bank. X is

suspected to be the leader of a Kidnap for Ransom Gang and he is suspected
of depositing all ransom money in said deposit account which are all in US
Dollars. The police want to open said account to know if there are really
deposits in big amounts. Which statement is most accurate?

a. The same rules under Secrecy of Bank Deposit Act will apply.
b. An approval from the Monetary Board is necessary to open the
account.
c. Because the deposit is in US Dollars, it is covered by the Foreign
Currency Deposit Act which allows disclosure only upon the written
permission of the depositor.
d. Approval from the Court is necessary to order disclosure of the
account.

13. 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.

14. 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 X’s patented invention.

15. Lucky Me registered its trademark, “Ang Sarap Pancit Palabok” with
the Intellectual Property Office. Nissinsubsequently introduced
its new product, “Ang Sarap Pinoy Ramen”. Lucky Me sued for trademark
infringement.

a. Nissin is not guilty of trademark infringement because the trademark

“Ang Sarap” is descriptive, hencenot capable of exclusive
appropriation.
b. Nissin is not guilty of trademark infringement because its product,
Pinoy Ramen, belongs to a different category from Lucky
Me’s product, Pancit Palabok.
c. Nissin is guilty of trademark infringement because it did
not register its trademark “Ang Sarap Pinoy Ramen”.
d. Nissin is guilty of trademark infringement because the trademark “Ang
Sarap” is fanciful and arbitrary, hence capable of exclusive appropriation.

16. Center Book Store is the publisher of the book Legal Journal. It
donated one copy to the Library of the U.E. College of Law. The Library, in
order to preserve the original book, reproduced one copy of the Journal for
lending to the University’s students for room use. Is the U.E. Law Library
liable for copyright infringement?

a. No. The reproduction is consistent with fair use.

b. Yes. Only the National Library is allowed to reproduce books and other
works.
c. No. The copy of the Journal is marked “For Room Use Only” and is
therefore not made available to the public outside of the Library.
d. Yes. The law only allows a library to photocopy a book if it is fragile or
rare.

17. It means any corporation with a class of equity securities listed on an

Exchange, or with assets in excess of Fifty Million Pesos and has two
hundred or more holders each holding at least one hundred shares of a class
of its equity shares.
a. Open Corporation
b. Public Company
c. Listed Company
d. Any of the Above

18. No member shall transfer his shares or interest in the cooperative or

any part thereof unless:
a. He has held such share capital contribution or interest for not less than
1 year
b. The assignment is made to the cooperative or to a member of the
cooperative or to a person who falls within the field of the membership of
the cooperative
c. The board of directors has approved such assignment
d. All of the above

19. Is a person who, acting alone or with others, takes initiative in

founding and organizing the business or enterprise of the issuer and receives
consideration thereof?
a. Prospectus
b. Promoter
c. Salesman
d. Registration Statement

20. One of the following is not a function of PDIC:

a. Insurance
b. Bank Examination
c. Corporate Rehabilitation
d. Receivership of Closed Banks