MOUNTAIN VIEW COLLEGE

Valencia City, Bukidnon

REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

Atty. Fritz Z. Tagaloguin

FINAL EXAMINATIONS

1. To pay for his loan from Leonil, Christiano constituted in Leonil’s favor a
Promissory Note and a Chattel Mortgage over his brand-new car. However, few
months after the transaction, Christiano failed to pay 3 consecutive monthly
amortizations, hence, Leonil instituted a foreclosure proceedings against the car of
Christiano.
a. Supposing, the proceeds of the foreclosure proceedings were not enough to
satisfy the obligation, can Leonil recover its deficiency?
b. Suppose, 1 month after the foreclosure proceedings, Christiano won a lottery
jackpot and wants to redeem the car foreclosed, can Christiano validly exercise
his right of redemption?

2. Eric bought a new car on 12 monthly installments from Janey Motors, Corp.,
however, Eric was able to pay only the first month of the installments, and failed to
pay the remaining months thereof.
a. What is/are remedy/ies available to Janey Motors, Corp., in order to enforce
its rights over the obligation of Eric?
b. Supposing, Janey Motors, Corp. exercised one of the remedies, and Eric’s
obligation was still not fully satisfied, can Janey Motors, Corp., still avail the
other remedies? Explain.

3. Rodel is a barker in one of the terminals in Valencia City, and his only source of
income is only by way of receiving coins from drivers of jeepneys and tricycles.
One day, he went to his friend Oswald to pay his debt amounting to P950.00, and
tendered to pay 950 pieces of 1 peso coins. Can Oswald validly refuse to accept the
payment tendered by Alfred?

Suppose the obligation of Rodel is P500.00, can he validly tender a payment to

Oswald comprising of 2,000 pieces of 25 centavo coins?

4. Dion borrowed P20,000.00 from Cindy. To secure the debt, Dion pledged her laptop
to Cindy. Dion badly needed her laptop for her final exams, and so she went to
Cindy and paid a partial payment of P15,000.00, and thereafter demanded to get
the laptop. Cindy refused to deliver back the laptop. Is Cindy’s refusal correct,
despite the substantial payment made by Dion?

5. What are the objects of the following transactions, and who are in possession of the
properties used as securities while the loan obligations are still pending?

a. Pledge
b. Antichresis
c. Real Estate Mortgage
d. Chattel Mortgage

6. Explain what is “Security of Tenure” in employment, which is duly protected by

our Constitution?
7. After working for 7 months, Alex was terminated by the company, because his
Supervisor doesn’t like to see his annoying face. Alex insisted that he cannot just be
terminated according to the wishes of his Supervisor, because he is already a
regular employee, however, the company counter-argued that Alex is not a regular
employee, as he is not qualified for the job, because he was lazy and always being
late in reporting for work. Is Alex correct with his arguments, that he cannot just be
terminated without a valid cause, because he is a regular employee?

8. John worked for 3 extra hours on Monday, because the company required him to
finish their year-end report. However, on Tuesday, he only worked for 6 hours,
because of some emergency in his family, wherein his father was rushed to the
hospital. On Wednesday, he again was required to finish that work which he left
unfinished on Tuesday, and so he again worked for 2 extra hours. On Thursday
and Friday, he worked the usual hours of work, which is 8 hours. In total, he
accumulated 5 hours of overtime for the whole week. When he received his payslip,
he noticed that he was only paid for 3 hours of overtime pay, because the 2 other
overtime hours of work was offset when he worked undertime on Tuesday. Is the
action of the company paying John for only 3 hours of overtime pay, correct?