MERCANTILELAW Dean No Divina, Charman Dean Eduard LF Abels Prof. vets H Bales Daan Bartolome. Carle Dean Dan. Conepion Dean Cynthia Rel Castillo Juste opr B. Dinaapo Prof Gwen G. de Vera Prot lacinoD.Tnenex Pro Eduardo A. Laing Prof Rafel A. Morales. Prof Ver V. Loazsa Prof Rowes £2. Daoy Morales Dean Willa B. Rane ‘CRIMINALLAW asic Ebert 6. Sandoval, Chairman Dade Pilp A Asilo dusts ApoinarioD. Brel Dean Bartolome. Canle ‘sige Maro B,Carpanila Prof Ramon S. Epuera Jase Rolin Bao Prot Eduardo A. Laing Base Rodale G Paltao ste Manuel Paar Sg Ova B. Pines ‘edge Dennis Vilgacio [REMEDIAL LAW Pot Ramen S. Esguer, Charman Prot Aloysius. Alay Prof Henediae M Bron ste ApolinrioD. Brselas Dean Dail L Concpcea Pro Rowen V. Buoy Morales ‘sto Zemada 7. Calpe agus Prof Basudo A. Labtg “stce Rodale. Palatao “atc Manuel .Pamaran Dea Wierd 8. Rano Dusted G Sandoval Prof Christin G, Vila LeGALETHCS Juste Hector L Hole, Charman Dean Eero I. Abella ucge Philp A. Agunao Prot Erikson H- Banes Prot E(Leo)D.Barad Prot Rees Mara) Baia Prof Abad Demondon Prof Reve 8. Gorge Prot Concepcion LJareleza Prof sung A. Lablag rot Vitor V.Laanzon Prof Dean C. Pangan ‘CONTENTS FOREWORD nner ANSWERS TO BAR EXAMINATION QUESTIONS POE LAW nner LAF LAW cen Cv La nnn “Tot nent TS Comercial LAW nnn Cima La ence Remedial La ene Lega Ef enn 16TPOLITICALLAW A prt ofthe Adminis i the change ofthe frm of goverment rr tary fo eer The change ca be effete ony through nstitonal amendment or vs, otra atest 96 of he elt ry legate ase. Imus be represented (Avie XV, Sex. tthe 967 Costaien)-2 “QUESTIONS IN POLITICAL LAW “The people cannot propose revisions and may propose only adments. The petition mur be signed by the required number of Deeps and the fl text of the proposed amendments mast be embodied {the peition Lambino » COMELEC, GR. Nos. 174183 & 17429, ‘Ortaber 25,2006, 503 SCRA 1680. ‘Any amendment ender Artie XVII, Sec. 2 of the 1957 tl, shal be valid when rete ya marty ofthe votes cst in ttn. (@) Cheat eat tree provisons of he Corton hat ned to be mended or revised sac the change om uly wo feel and bey lain why?) SUGGESTED ANSWER (©) Example of provisions that need be amended or revised olf the change from ular 0 federal: 1. Artie X,See.3 must be omitted because the legisature wil 0 longer dee the scope ofthe powers ofthe government. 2. Arti X, See 4 wil have tobe omited The President it 0 longer have the power osupervson over lea goverment. 3. Arle X, See. $ must be omlted. Congress wil no longer be allowed to impose linkatins onthe pomer of taxation of lel governments, (Noe: The pane! wiser reamimend bral aor ofthe examinee Torti question ar answers canbe glean Poe many artes nd provisions ‘ofthe Contin, among the Ailes VI, VU and X) SUGGESTED ANSWERS TOT 2017 BAR EAUNATON 3 a Unsere doceine of immaniy rom sit, he State cao be sued witout ts concent. Hom my the consent be gies bythe Ste? Explae your ener) SUGGESTED ANSWER “The State maybe sud, with ts consent, ther expres ori pliedy. Only Congress cam pve writen waver oft from suit in {he form ofa law (United States Gut GR Nos, 707, 747, 80018 26,1090 182 SCRA 66); Republe Felons, GR. rh 1, 198%, 1B SCRA eras x proprietary fanton it from aut When the Philippines Toerizm Astboriy (htered ita a contrac forte construction of golf eure engage in proprietary function (Phlppine Touran Autor Phiipine Golf Destopmert and Equipment, I, GR. NO. 17628, March 19,2012, 68 SCRA‘. ‘The doctine of muni fom st infor of he Sar extends 0 bli offi inthe perfomance of tr fia dues. May such fi [esued novels to prevent orto undo he apresive a egal aco ‘chmelthom oa? Explain yoursaswer (9%) SUGGESTED ANSWER bloat maybe sue if they acted oppeessivl or egal In te performance of ther dues. A suit ngtest a public ofeer Who ‘etd legally nota saat the stale (Aberca Ver, GR No. 62866, ‘Api 18,198,160 SCRA").4 SUSGESTEDANSNERS To THE 01, 8AR EXAATON "QUESTIONSIN POLITICAL LAN never he wr isueta control or review theexerche of deretion rt compe a ‘ours of conduc. The wrt of prohibition cen alo be aad of Ste ‘xtraordinary wri which ean be directed agai publi offer order Ings fer to est rom farther proceedings when sid proceedings are without or in exces of sid ofcer's jardin, or are accompanied ‘wt grave abuse of dsretion (Ral 5, Revised Rules of Court) Lest publ officer is by lw notte frm damage a hisher personal apes Tor als one tn bad falth which, being ouside ‘he seope of his authority, ae no longer protected by the mantle fim ‘muni for oficial action (Mnzns-Chao Farune Tobacco Corp, CR, ‘No 141309, ane 19,2007, 828 SCRA It). c Do govementawned or -conrle carports alo eo hem munky ofthe Sate fom si? Explain your awe 0%) SUGGESTED ANSWER government-owned or controle corporation maybe sued A sit gaia tno sat gain the Sate, ern Whar 4 141298, ebraary 2, 5,120 SCRA 707). m ‘Sate Aand Sate Bt sovereign sas, nent a 10-year mutual eens ray Aer ve ears, Sat fins dat he more progressive State id not go tothe ad of State A when wa thetned by te song neighbor Ste C. Sate B reasoned tht ithadto be ruentand debra racing to Stat becaeof tr exiing trade eaten (May Sate A now uileraly withdraw fom ts mtu! fens wat with tae BY Explain your answer 0.5%) SUOSESTED ANSWERS 10 THE 207 AR XANBATION 5 STON nPOUTEALLAN ‘SUGGESTED ANSWER (0) __ State Amay wnlaterally withdraw from the matt de- ‘ene reat. State B commited a material breach o the Went by fling {te ame to the ald of Sate A (Art. 60 () of the Vienna Convention on the Law af Treaties; Kolb, The Law of Treaties, 20; Aus, Modera Treaty Law and Pract, p. 296237), (©) Whatste diteee btwn dh pipes of pact st servanda and eb se stabs in erin aw) ‘SUGGESTED ANSWER (©) Pace sud servanda meas that every treaty i fore lt binding upon the Stas who are pats to, and States must perform ‘Mar eiigaion in goed faith (Deutsche Bank AC Male Branch Com Imtsioner of Internal Revenue, GR. No. 18550, August 19,2013, 704 SCRAIIG.. ‘Rebs se stabs means that fandamental chang of crm ‘stance, whieh occured wth regard to those esting athe ime ofthe Conclusion of treaty and which was not foreseen by the partes may ol be lnvoked for withdrawing frm a treaty uns thelr existence cont the parties and there is obligations stil tobe performed (Article of the Vienna Conveation oe the Law of Treats) (2 Arethe principles of pate sum servonde and abs sl tomb relevant in he ty reatan between Sate A abd State 8? What ‘Shoutin tetra rnlon between Sine 8 nd Sine C?Exptin yoaranawer as) SUGGESTED ANSWER (Yes. Pct sun sevanda was what bound State Aad State B ‘ocomply with thetollgations under thelr mutual defense reat despite ‘heexbting trade agreements betwen StateBandSateC. Article othe Vienna Convention onthe Law f Treaties, which nunciats the doctrine of ebus si tans, onthe ober hand, an be invoked by Sate6 ‘SUGGESTED ANSWERS TO THE 207 BAR EXAUNATION QUESTIONS M POURS there isn vital change the crumatanee. To ‘ompliance withthe treaty woul jeopardize its ital rade development. [Because of this unforseen change of circumstances combined wih State 1 non-compliance with it obligations under the treaty In ood faith State A may now opt towmateraly withdrew from the eat ‘hat the atoning power ofthe Presidntundr AR. VI, See. 19 ofthe Constante exsaseof the power abot? (#6) ‘SUGGESTED ANSWER, xcept in assaf impeachment o as otherwise provided in tis CConeation the President may grant reprieves com mutations and par ons, and remit foes an frflure, after conviction by Sil jdgent He shall ao have the ome o grant amnesty wit the concurrence of Imajority ofthe Members of the Congres (Artie VIL, Sex 19 of te 1989 Cousin). 'No pardon, amnesty, parle, or suspension of sentence fr vote tion of estonia, rats, abd regulations shal be ranted by the Pre ‘ent withot the favorable recommendation ofthe Commission (Artis {ales and regulations In whieh here was no favorable recommendation ‘Coming from the COMELEC. Any at of Congress way of atte car ‘ot operate to delimit the pardoning ower of the President (Risos-Vde! SS COMELEC, GR. No 206666, tanary 2, 2015). _suagesTeD ANSWERS ToT 2017 BAR EOMNATIN 7 ‘QuesTensmPOUTICALLAN Distngish pardon rom amas (8%) SUGGESTED ANSWER 1. Pardon a be gen only afer al conve amnesty an be ‘Be any te and even blo the lingo criminal ease. 2 Pardon ooks forwards amaedy leks backward as ithe aces ever committed were. 3. Pardon i gen to individu. Amnesty is given to css of persons. Pardon given for all rina offenses, Armnesty sven for police fens 5 Pardon does nt require the concurrence of Congress Amnesty requires the concurrence of Congr. 6 Pardon mast be proven, beau it & a private act; amnesty teed ot be proven, brenae a ple act (Baringo % ermande, G-, Na L128, January 2, 1969, 82 Pit. 602) v (4) What sth ght of eatin, and hw is it underaken between ste? Expan yor enswe (26) SUGGESTED ANSWER (0) ‘The right of legatn i the right accorded to State to tbe represented by an ambasiador oF diplomat agent in athe State (Coquin and DeensorSantag, International Law and Work ‘Organtetons 9289).a SUOGESTED ANSWERS TOT 017 BAK XAT (©) Unde ish mya comme ke Malaysia ini tha te Phiippines etablises a consult In Sabah fo ook af the welire ofthe Flip migra inthe area? Explain your answer. (2%) SUGGESTED ANSWER (8) ___ Malaysia cant ine thatthe Philippines etableh ‘consulate in Sabah, Article f the Diplomat Convention provides“) ‘he ertablishment of aiplomatiemison takes place by matal consent”. [ASiate may conduct its diplomatic rations wih another State without ‘tabling a diplomatic mision(Magations, Fundamentals of Publ eenational Lam p91) “Te Preset appins the Vice Presiden his Adinsraion’s Mowsing Ceara poston ta exis the appotts ts ote Cabinet A ‘high te eppinamet of th amber ofthe Cabinet vetues contrat bythe Commision on Apolninet (CA, the Office of he President dow = brit te sppntmest tthe CA. May the Vee President vail itn the Cainer (250) SUGGESTED ANSWER ‘The Vee President may vy sin the Caine even ithe was snot contrsed by the Commission on Appoiniment. Under Arte Vil ‘See 3 af the Constitution, the appointment ofthe Vie President as cabi- tet member reqetesno confirmation (Areulo® Ageine I, GR. No ‘omar, July 014,728 SCRA D. SUGGESTED ANNERS TO THE 017 BAR AMMAN ° ‘uesmons mPOUTIAL LW “The Exes Deparment seaulted substantia savings fom ts apopriations. Nesting P3000 0.0 fr the conc ofa plebiie or the reat fe ly ut has no funds ppropitedson by the Congress fer the purpose te COMELEC request be Presi to want fds fom the ening of he Beesie Depron! ater svi dla foe ing oft plete May the President validly exerci is power nie the 1987 Con- ston to tense fonds fom the svete Executive Deparment ad ‘make eas border uastr of P,00/0.0 tothe COMELEC by way of ‘ements your anne the same te wane ete sao the ‘COMELEC? Esplin your answer (0) SUGGESTED ANSWER ‘The President may not trans savings to the Commision on “tetons aad. The consttatoaalprobblon against he transfer propriations a ather branches of goverment or Constitutional Commis- tion apple fr whatever eas (ral Aquino I, GR No. 209287, July 3014, 725 SCRA. vu Give the inaions om the poe f the Congress to enc the en tra Appropriations Ac? Expin your sve (9) SUGGESTED ANSWER Sections 24 and 25'of Arle VI provide the linitatons onthe seer of Congres to enact General Appropriations As ‘Al appropriation, revene o aif bls, ils authorising f= rete of the puede, ils foal pation, and private bls Shall10 SNCGESTED ANGERS T MHE2017 OAR EALNATON ‘QUESTIONS POLI LY originate exclusively ia the House of Representatives, but he Senate may ‘propose or concur with amendment (Aree VI, Se. 24 of the 1987 Con ton). "The Congress may not increase the appropriations recommend by the President forthe operation othe Governments specie in {he Budge The form, content, and manner of preparation of the Budget ‘hall be prstibed byl. No provision or enactment shall be embraced Inthe general appropriations il woes it rls special to some par- ‘cule appropriation therein. Any such provision or enactment shall be limited i ts operation othe appropriation whieh I rlats The pro ‘cedure in approving appropriations forthe Congress shall te follow the procedure for approving appropriations for other departments a fagences Aspect appropriation il shall pec the purpose for which {eis ltendedy and shall be supported by fnds actully available as cert {ied by the National Treasurer or tobe raed by a corresponding revenue proposed therein (Article Vi, Se. 25 ofthe 1987 Canstitation). ‘No la shall be passed authorizing any transfer of appropria- tions; however the Presieat, the President ofthe Senate, the Speaker of the House of Representatives, the Chie Juste of the Supreme Court, the heads of Conaitionsl Commlsans aay, by law, be authorized {o augment any tem Inthe goneral appropriations lw for her respee- tive ofces fom savings in ther ems of tet respetive appropriations (Ariel Vi, See. 28 of the 1987 Constitton.- Discretionary funds appropriated for particular offi shall ‘ve alsbursed only for public purposes lobe supported by appropriate ‘wouehers and subject fo such guidlines as may be prstibed by lw. iby the end of any fal yer, the Congress shall hve fled to past appropriations bl for the ensuing fiscal year the general ap- ons aw forthe preceding seal year sal be deemed reenacted the genera appropriations ol tepated by the Congress (Article Vi, Sex. 25 of the 1987 Contieton). SUOGESTED ANGERS TO THE 017 84R EAMNATON " vu ‘A bak acquired a lage wat of land a he Nght Beri he foreclose ofthe motanged ass of is borrower. I appews Dat the land has been exigalyregisured unde he ores system i 1922 sua othe provisions of he Pilppine Bl of 1902, the ean ct of the Pilipine Lands sa coley of te USA. Sc. 21 ofthe Pappa Bll 19 1902 provid that “ll able mineral deposit in ple lan In the Prilipie Ins, bth surveyed and unsure, are htey dea tobe fice and open to exploration, acupaton ad purchase and he land in which they are ond to occupation nd purcose, by etiars of the Unie Stes, ot fs nde” Sc 27 of the nw declare tats older ofthe miner csi $e leeed wa ented oil be minerals te win cla he could ot mine ouside the bourse. "The 1935 Consun exresly proiited the alienation of rata rescurces exept agua ands. Se. Ar. XI of he 1987 Censttion| onan a similar proibton, ad pocains Dat al lands of the poli domain waters, mineral, col poe, andor mineral i all forces, of potential ene. fbr, forests or tine, wid, fora ad fama, nd fer unl recoarces are ced bythe Sut This provision enuneateste Regal Doct. May the Goweaest, on the bass of the Regaian Doctrine muni th constional provisions, deny the bank i ight owner tothe mineral resources undemeth he surface propery a recgnid ‘nde the Pili Bil of 1902? Explain your answer (9) SUGGESTED ANSWER ‘The government cannot deny the bank ts rght as owner ofthe ‘mineral resources underneath the sorace of he property The mining ‘ght acquired under Philippine Bil of 1902 before the efetviy of {he 1535 Constitution were vested rights that cannot be impaired by the Government Vink Biol Mining Corporation .Trantsl Oi and ‘Energy Development Corporation, G Ne 207942, January 12,215,745 ScRAIS#.2 socesTn Hens To TEs a UNTON is “Ambusaor Rober of Sate Alpha commited a very serous rime while headed he foreign sion in the Pipes. eh subtest 1 Philpine uberis? Explain your answer) SUGGESTED ANSWER ‘Punishment of Crimes Agunst International Protected Pervns Incding Diplomate Agents the Phiplaes har the olgaton to cither extradite prosecute Ambassador Robert of Stat Alpha (Magallona Fundamentals SrPabc lorena! Lavy 6. xesdtn is the process pursuant ta weary between wo Sapa es for he sumender by the roqustd Stat the easody of he eqesing ‘Stat of fpitve criminal vesting inthe former. However, extdtion oe pends nthe aplieatin of wo pipes the principle of speiay andthe ua eiminaliy principle. Explain hse penis. (9) SUGGESTED ANSWER, . ‘The prncple of specially means that the State requesting ‘extradition fom another Satis required o spel the erimeas proved in the extraton treaty for which the five or the accused ist Be ‘xtratied and tobe tied only or the offense speed nthe extradition {weal Magallons, Fundamental of Publi International Law, p. 572). ‘The principe of dul criminality regulres thatthe erie for hich extradition 1 sought must be recognie 5a evime by bth the ‘euiring Site and the tate to which the fgitves or the ceased bas Hed (Magallons, Fundamental of Public Iteration Law, p57) S0GESTED ANGERS TOTHE 7017 OAR EMUNATON 2 uesmons mouroaL AM c “The Paint sgn an erement wih his eounerpat in soter curt invelving repost i the eaten’ ofeach ebay’ nationals r= Siding othe ors onory. However, does ot sub theapeemen fo te Sent for concaece . ‘Se 21, At VIL ofthe Contin provides that 30 wea) orl tention agreement sal be aid and atv witha such eoncurence Isthe arent signed the Peident eecive despite teak of Senmte coocureace? Explain your answer (4) SUGGESTED ANSWER ‘The sarecment signed by the President i efective even ithe Senate did notconcerin The agreements nthe nature ofan ecetive lgreement nd need aa be submaed © the Senate for concurrence iis tatleaion(Supungu Ochow, Je, GA. Nos 12406 & 212444, Janay 12-2016, 779 SCRA2)- Under the eral bil dca the signing of 2 Wil by bth te Speaker af he House of Representatives and he President of the State and ‘he certcton bythe secretes of but Houses of Congres ta the il was Dae ona cea d are conlsive othe i's de enactment suming thers ica beeen the enol lsd he leglve outa, oe ‘ff tha th elle il gre bythe Sent Preset and evenly ap ‘ved bythe Preset trod outa be fleet om what he Seat act Sly panda refeted inthe legate cura. (0) May te Senate Present cep he nal il doce and considers sige as avid and of a eet? 9)1“ SUGGESTED ANSHERS ToT 2017 ax XAMMATON "QUESTIONS N POLITICAL LAN SUGGESTED ANSWER raw his sgnature from a ‘was approved by Congres, ‘orgs Viteas, GR. No, aber Aprile, 1976 86 SCRA (©) May the resident hreter withdraw his signature? x ‘isn your answer (2585) SUGGESTED ANSWER SUQGESTED ANSWERS TO THE 2017 BAR EAUNATON ‘esnONSIMPOUTICALLAN xt ‘ic 17, Ar. Vl ofthe Constaton eal an Eletn16 SUGGESTED ANSWERS TO THE 201 BAR XAANATION ‘QUESTIONS NPELTIEALLAN (8) 16 the law exablshing Philipine Funds, Ine. constitiona? Explain your answer. 6%) ‘SUGGESTED ANSWER (@) The cstabshmen of Piippine Funds, Ie val 1 vas crete to enable the speedy disbursements of donations for eam tes and disasters. Public purpose is no longer restrieted to traditional, {government functions (Pai iaaon %. Executive Secretary, ‘GR. Nos. 14703637 & 1478, Apel 10,2012, 269 SCRA 9). ®) * cantbeCongress pss he wha would exempt orelgn rn om the jureition ofthe COA? Explain your anawer (3%) SUGGESTED ANSWER (©) Congress cannot exempt the foreign grants trom the Jurisdiction ofthe Commision om Axl juridieton extends to al {governmentowned or controled corporations inelnding those funded by ‘Sonaions through the Government (Art. IX‘, Se. 3 ofthe 1987 Pili pine Conscuton; and Pataner Corporation x Execute Secretary, G. Nos. 14036-37 & 147811, April 10,2012, 269 SCRA 4). Command responsibilty pertis t the responsibilty of command rs for crimes commited by subordinate members of be armed frees of thet Ferns rbjesto thi conrolin international warsor domestica. The “inet pv found splean nev acon Tor uman Fights buss, and inproceedings sesking the eve ofthe wt of amp (©) What are the elements to be exblhed ia ener to hold the seperor or commander lable under the dectine of command responsibly? 94) SUGGESTED ANSWERS TOTHE 207 BAREXAUNATION 7 esrons NPOUTIEAL AM SUGGESTED ANSWER (@)_Thedoctrine ofcommand responsibilty can beinvoked (o determine the author who ls accountable for, and has the duty 10 Iarasanent complained of 1 enable {he courts to deve remedial measures that may be appropriate under ‘e premises io potet thelr eights covered bythe writ of ampare. TO i someone Hable under the doctrine of command responsibilty, the folowing elements mast obtain: (0) the extenee of supetiorsubordiaate relationship be- toveen the ceed wr aero (@) the seperior knew o ad reason to know thatthe ere ‘wat about toe or Had been commited ©) thesuperise fae to we tenses to preven th criminal ats or punish the per petrators thereof (dq: x Macapagebtraye, GR. No. 191505, November 5, 2011, 660 SCRA 84), (0) May the socvne of conmand repost apply 1 the Pretdet forthe abuses ofthe amed fore (AFP and PNP) given is urgue ‘oles the commander hi fal th amed forces? Explin your seer oo SUGGESTED ANSWER (©) The prosident, being the commanderin-hiet of all armed forces, necessary posses cova over te mary that fer hi asa superior within the parvie ofthe command responsibilty doctrine. The incumbent Prien is Imune trom suit during bs in ‘ambercy. The immunity, however exits nly during the incumbency of the President Once nso her trm has ded or she may be bel e- ‘countable under this dctine (Rodrguc» Maceppadrreyo, G.R. No 19180, November 18,201,660 SCRA 38).ry ‘500GESTEDANSVERS TOTHE 2017 BAR BABNATON QUESTIONS NPOUTEALLW ‘of worship in the locality in an area ofthe late's choice. Doss the President hereby volte any provisions of the Cosi tio? pli our answer 3)20 SUGGESTED ANGERS TO THE 2017 BAR EXRUNATN QUESTIONS POLITICAL LAM Wat costes intton of impechmentprocedings under the provisos? G%) SUGGESTED ANSWER LABOR & SOCIAL LEGISLATION A A) Fourtoa Tet: |. Theseloton and engagement ofthe employees 2 The payment of wages The power of damissal and 4. The power to contra the‘SUGGESTED ALGWERS To THE 2017 BAR EAANATION “QUESTIONS IN LASOR AND SOCAL EOISATON 1B) Bonomi reality Test:24 ‘SUOGESTED ANSWERS TO TE 2017 SAR EAUNATEN m. Andow Manning Agency (AMA) rerated Felco fr employment by Ivins Siping. sign pica Mente, AMA and lave Shipping terminated thei ageey greet. Upon his epson folowing his premature teminion, Felco clined fom AMA ané Inve Sipping the payment of hs slaes and Denes forthe unsaved portion ofthe canmactAMA dene bly on he pround that na lenge hadi ageny sgresmet with inves Shipping. IsAMAcoret? Explain your answer. 09) SUGGESTED ANSWER AMA i not correc. The labty of the prnepalemployer and Imade locally oF na foreign contr of the sald eontract Seton 10, Rep. [AetNo, 802, as amended by Section Tof Rep. Act No. 10022). ‘The fat that AMA and i foreign principal have alendy terminated ther agency agreement does not reve the former of Habit, because the obligations covenanted inthe agency agreement betwee thecal agent ands fregn principal ae not coterminous ‘vith the term of such agreement otha i either or both ofthe parle ‘decide to en the agreement, the responsbites of such partes towards ‘he contracted employees under the agreement do ot at all end but the ‘Same exends upto and vol the expraon af he empleymen contracts was enacted (Caan NLRC, GR No. 7779, Ape 15,1983, 160 SCRA on. : ‘Roceaen sane 0 E17 eRe saRUSEN 25 ‘Asal, diet hing of migrant workers i not allowed. What ae the excpton? Explain your anne, (2.5) SUGGESTED ANSWER ‘The exceptions are: ret hiring by members of he diplomat “orgesizations international organizations heads ofstate and government ‘cas with che rank fat east deputy minister andsach other enplyers ‘Artie 1, Labor Code) The eons forthe bun on dretheg ae: 3} worker hired directly by 2 foreign employer witout terventon may not be asured ofthe best and condion of employe %) A foreign emplayer must ao be protected. Wihout foverament Intervention, » forcign employer may be fneringlntoa contrat with Fipin whois not quali the jo. ©) The_ mandatory requiem Philippine of» porton ofthe workers foreign exchage ‘arningr can cally be evaded by tne worker. « Pl» eset ain sought erploymen inthe Phipps. The employe ling th Phil was a foreigner, demanded tat he rst seers an ‘Snploymen pert fom he DOLE Ts the employer caect? Expl your ‘ower (25%) SUGGESTED ANSWER No the employers not correct, Only non-resident alles eng ‘admbsin othe Plippines ae requlred to ebain an employment permit {rom theDepartmentof Labor and Employment (Article, Labor Code)28 SUGGESTED ANSvES TOTHE 201 aan BAUNATION "QUESTIONS N LABOR AD SOE EOSLATON ALTERNATIVE ANSWER ‘The employer is not correct Under DOLE Department ‘Order No. 75-06, resident foreign nationals are exempted from ecring, ‘anemployrent permit. w The Regional Tiparte Wages and Productivity Board (RTWPB) for Region 5 issued a wage ore on November 2, 2017 fing the fina ‘wags fr linduse troughout Region 3. (©) the wage onder suet tthe apo! of the Nason Wages nd Productivity Commision efor i takes ect (28) ‘SUGGESTED ANSWER, (3) No, because the NWPC exercies only technical and dminscrauve supervision over the RTWPD (Article 121), Labor Cote ALTERNATIVE ANSWER @)__ No, the Wage Order becomes eatve Sten (15) dys alter ts publication in at eat one (1) nenspaper of general cireaaton {he repon porsuant othe Rale of Procedure ia Minimum Wage Fag. ANOTHER ALTERNATIVE ANSWER (0) Yeu In NPC x Alliance of Progresive Labor (G8. ‘No, 10536, March 12,2014, Ic was ruled that “he very fat thatthe ty ofthe asalled sections of Wags Order No. NCIOT had been ready passed upon and upheld bythe NWPC ment that he NWPC had Slready ven the wage orders mecesrarylplimprimatar cordingly, ‘he reqs approval or review war complied wit.” 9UGGESTED ANSWER TOTHE 207 BAR DAMNATION 2 QUESTIONS IM ABORAND SOCAL LEGBLATN (©) Thelaw mandts tht option fr mage increase shal be ceteine wins periodot2 mont font eevee wage rd ‘Under wha srnsness may the Kiusig Walang TAL federation of Isher omaniations that pubic andopenyasals te wage ocr as blaaly ‘nit, nt the review ofthe wage reer under he wage ner Wit ‘ng forthe end ofthe 12-onth period? Explain your answer. (9) SUGGESTED ANSWER (8) The federation may bilate a review of 1 order even before the expiration of thr 12 month Ste spervening conn, sueh as extordinary nereae In prices of ‘Peroleem products and bsiegoaduerets Which demand review of ‘minimum woge rats a determined byte Board and confirmed by the Commision. v A Pecival wasamecani of Pcie ities, Heejoyed a mea beak ‘fone hour However, dng meal beaks, e Was requed be on sandy feremergency work. During emergency, be was made Frego is meas of totary up etag. He demanded payne of vertine for werk dove ding ‘mel pede a Peril cares? Expan our anewer 99) [SUGGESTED ANSWER Percvalis correct. Under Arti So the Labor Cade Il, Role, Seton 7 of he Res, sal be the day every employer fo ie is employees atlas than sat (60) minutes timeoff or tel ‘equ mene Bat where during the meatbreak, the workers are eguited {olstand by for emergency work, such periods eamired overtime (an american Word Airways Systm (al) x Pan American Employees ‘Assocation, G. No L-16275, February 2, 1961, {SCRA 52)28 SUSGESTEDAtsnERS ToT ZT Ban EUNATON QUESTIONS LABOR AND SOCW. LESAN ALTERNATIVE ANSWER Distinguish teamer fo an appre. 4%) SUGGESTED ANSWER, ‘SUGGESTED ANSWERS TO THE 2017 SAR EUALATON 20 ‘QUESTIONS NLABOR AND SOCAL LEGISLATION « Are there diterenes Weeween a Houshlpe and 2 homework! Explin your answer (0). SUGGESTED ANSWER it violates the provisions of Article 136 Code on spalations against. sm employer to eequte a5‘cual isms, discharge, dsrimlnae or otherwise prejudices woman, ‘mplayee merely by reason of her mariage” 8 “Tuco mas ployed opeains manager sdreeiveds monty salary of 2500000 rug hi ayo avout with DB Bark. He oan) ‘lean fom Roberto to parchase aca Tariso flo pay Roberto when he loan fl de Rober sed o cole and moved gah Tac’ pyr account. The ater vigorously objected and aud ha alas were cop ‘oe guishent Tacs cet? Expl your answer 0%) SUGGESTED ANSWER, No, Taco is wo correct. Case ln exempts wages of rake ‘and-Ale employees fram garnishment. Tara, however as operations ager im etanageral employee Sines there covers aly raieand- Aleempoyes therefore, Tare anlary emo exempt rom garnishment (Goa Cot of pe i Noite, December 1H 1 SERA ALTERNATIVE ANSWER ‘Yes, Taco is correct. Under Atce 1708 othe Civil Cade,“ he laborers wages shall not be subject to exciton oratachmen except for debts incurred for foo, shelter, clothing and mdi atendance” ‘The indebtedness of Taco war due to» purchase of car which not one ofthe exceptions under the said tw ANOTHER ALTERNATIVE ANSWER Garaishment, which isa species of attachaent requires that Aebtor Turis) is insolvent SUGGESTED ANSWERS TO THE 2017 BAR EXAUNATON at {QbesTONS MLABDRANO SODA LEGSLATON vu Dr Crista entered ine retainer geen with AB Hoel and Resor whereby be woul provide medal serves te pssandepayes ‘STAB tela Resort, which tar, would prove the cine premises and Ineial spies He received monty reer fer of 0,000.00, pls & St share mt servie charges fom AB Hotand Reon gests valing thenscles ofthe elas series. The cnc employed ares and ai Saf howe slr, SSS contbtos and oer benefits he undeack to oy, AB Hotel and Resor ue dectves giving nsrctos to hin lhe replenishment of emergency Kis and feriding the cine aff om teeing ash payments rom the gress. Inti, the muses and ect af aed etilement orgs as regular employees of AB Hoteland Reson ba he ate efsed on he ground tha Dr rst who waster employer, was aninependetconrcar ale, with eons. (85) SUGGESTED ANSWER 1 wll ale in favor of AB Hoteland Resor. Applying the Fe Foi Test wil realy show nurse and the ‘ale staff ig De Crbostome Selection and engagement of te th Indleation that et power of dil i can e sad that as the doco, he hat the contrat ris employer conduct inthe dispensing of media services tothe iuerts and personnel ofthe resort. The fat that AB Holand Resort {ave instructions to him regarding replenibment of emergency hits and Terosing hi sta from receiving esh payments fom guests i of 0 Consequence They ae noting more ut puidelines which Wil not create snemployeranployee relationship Unsulr Life, Lat.» NLRC, GR. ‘No. 4484, November 15, 989,179 SCRA 689)2 _SUOGESTED ANSVERS ToT 017 BAR AAULATN ‘QUESTIONS LABOR ANG SODIL LEGISLATION ALTERNATIVE ANSWER {wre in favor ofthe employees: tn the case of Semone La ‘Sale Greens, ne (GR. No. 19968, Febrtary 10,2018, the Court eld that Time and agai, we have bd that the power of control refers tothe existence of the power and not eecesariy tothe actual cxerebe {here nor ie Westen forthe employer te artalysopersies the Devlormance of date of the employee tls cnough thatthe employer has ‘he ight to wil that power” Such power I present ia the hand of AB Hotnd Resort. vat Mariano wa Ned a Chit Engineer on board the vessel MV ‘Avslia His coabac of enpoyment sar for nine months After le tons, be was erhe. He washed hid ime ser anther ine ant Hernow claims eniement to the benefits of srr employes based co his ving performed asks wl recnsary and devil tthe employer's basins fra conlnous period of more than one year Ts Marla ci teable? Explain your answer.) SUGGESTED ANSWER 'No, Marcano's clan Is nt tenable. Seafarers are contrast employees fora ted term, governed by the eantracts they sign. We ‘Should not depart fom the rligs ofthe Supreme Court in Brent School, Inc Zamora (GR. No. L484, Febraary 5, 199, 18 SCRA. 702% (Coyoe NLRC (C.R. No. 13658, March 3,195,263 SCRA 199) and ‘Mitares. NLRC (GR. No. 110524, uly 28, 2002, 385 SCRA 316), which ‘ontate stare dec with espect othe employment satay o seafarers 2 contractual employes not regular employers, notwithstanding perfrmance of wu neesary and desable ancions Which exceed ‘ne year or continuous eieing. SUGGESTED ANGERS TOT 2017 Ban NATION 3 GUSSTIONS NLABDORAND SOCAL LEGSLATIN Seton 255 (245) ofthe Labor Code recognise cegres of employes namely: managerial spervisog andrankané le. (©) Givethe caters of cach category of employes, and state whether the ealoyes in each etary may organize ad fom wins. Explain your anewer 0). SUGGESTED ANSWER (0) Managerial employees - thee verted with powers prerogatives to lay down and wnecute management polices andor to ire, trasste, suspend lay-o, reeall employees (Arte 219 212), pa. ‘ns Labor Code) Manager employee canna ol ait or frm unions (rile 25524, Labor Coe) Supervisory employees ~ those who, Inthe interest of management, effeivaly recommend such managerial action ifthe ‘rcs of such authority ot merely routine ot clerical in natare, but gle for membership ins labor ‘rpenzation of ranicand-tle employees but may Jon, ait, or form ‘eparat ior organizations of thelr wa (Ar-2E8 {248}, Labor Code). Ranked employers al other employees ot ling within thedefnitonof-managera” or “supervisor” employees ar considered ‘ankand-le oployens (Arte 219 [212 parm, Labor Code). Rank nde employes have the right to form, Jon ot ass unlons of ‘wn choesng (APL 253 (243), Labor Cod),34 [SUGGESTED ANGERS TOTHE2017 BAR SUUNATON “QUESTIONS N LABOR AND SOC ESILATON ©) May confidential employees’ who asst _rmanagva employes and actin cee capacity ore acess conde ‘mates being handed by pesos exering manager factions in the fld ‘abortions for, ora ron abr unans? Explain Your answer, as SUGGESTED ANSWER () No these contdentat employees cannot form, asst, or jln bor usins. The excision from Bargaining uns of employes ‘who, the genera cours of ther duis, bacome avare of managetent polis relating to labor elton i founded epon the "conBentl {Employes rue™The rationale behind this ral that employees should ‘regard to contract negotiations, the disposition of geevances or eter labor relations mater (Su Miguel Corporation Superson and Exempt Employes Union x Laguesma, CA. Ne. 1039, August 18,1997, 277 SeRAS. ALTERNATIVE ANSWER 5¢ ectrine of necessary impliatio, the ication of managerial employees applies to ‘onidental employees (Pep-Cols Produce Pi, Inc» Se. of Labor, {G18 Nor 96693 nd 10330, August 10, 1999,312 SCRA 109). ‘SuQQESTED ANGERS To TH 217 aR EAUTON 35 ‘QUESTIONS MADORAN SOD LEOISATION x “Te bor sect has ben uly apating fer he nd of abo ely ceowscting, a ditingithed fom jb contacting. Exlaln hese two Kind ‘bor cotton nd give the ele of «fang atone i aboraly antactor Explain yoursnewers. (8) SUGGESTED ANSWER “Theres abor-only contracting where: (1) the person suppying workers to an employer dors not have substan capital or nvestest in {he frm of tots equipment, machineries, work premises, among others tnd @) the workers rcralted ad placed by such person are peforming sides which are Srey rented to he principal business Of such pliner (Bagulo x MLRC, GR. Now 7900608, October 4, 1981 202 SCRA‘465; Art 106, Labor Code). “here is jo contracting where: (1) te contractor caries on independent busines and undertakes the contract work M6 own [ccount under hr own responsibilty according to Bs own manner and ‘onneced ity the performance ofthe work excep as (the Tess thereof, and @) the contractor har substantial capa o Investment in for of tol, equipment, machineries, work premises and other atria which are necensary nthe condoct of is usiess (Bepulo» URC CA Ne tbe eae 9, 3 SA) ing that contractor labor ony contractors equivalent ton decaruon tat bere son empayeranplyerelaonshipbtween the principal and he employees ofthe Inboronly contractor Insel Timber Cop» NERC, GR. No 83616, January 2,189,169 SCRA}. im such a ease the person or intermediary: satan ageat of the employer, who shall be responsible to ‘he manner and extent asi the later were Srey emplayed by Ait (Sandoval Shipyards, nc ric Pep, CR. Ne. 142, June 25,2001, employers of ‘wags but forall elas under the Labor Code and anelary laws (Sr ‘Miguel Corporation MAERC Inerated Sees, I C.R.No. 14672, ‘oly 1, 2005, 495 SCRA.38 SHOESTEDANGHERS TO ME 207 BAR AMINATION 8 ‘What are the grounds for validly terminating the services of an employe nsdn ajustcase? (3%) SUGGESTED ANSWER Article 296 ofthe Labor Code irmerty Artie 280 provides ‘An employer may termite slowing cause (Serious misconduct o willl disobedience by the fmployer of the tswfl orders of his employer or ‘Fepresentative im connection with hs work, o © @ acrime or ofese by theemployer gait the person his employer or any immediate member of ‘is famly or his duly authorized representatives; and (Other eauss analogous tothe foregoing. c ive the procedure ta be abserved fr valdyeminainghe services ofancaploye based onajustease? (2) SUGGESTED ANSWER tie: Notice op the employee specifying the prow ‘he employee reasonable opportunity wide Which to explaln his se. SUOGESTED ANGERS TOME 2017 AR ELAUNATION a7 QUESTIONS mM ABDOR AND SOOM. LEOSLATON 2 noice: Notes of termination, which 15 2 writen of termination served upon the employe, Indcting tht upon ‘onsideraton ofl the eumsance, grounds have been established 10 jsty his termination. 1. The fit notice shoud contain dtaled aareation of face and rcumstances that wl serve at Ba for he charge or specie causes oF ground for termination ‘gaint dhe employee end a deve that teemployecis ‘ven the opportuniy te submis written explanation Iithin resonable perio (Unlever Pa x Maria Ray ‘sera. No, 20170, June 3, 2013, 697 SCRA 130) This to enable the employes to ntlienty prepare his expiaton and defenses. 2A genoa desripton of he charge wil ot ce. The ‘ole shoul petiealy mention which company rls, Ie any, ae vated (Xing af Kgs Transport, Ine. ‘Man, C.R. No 16628, ne 29,2007, 516 SCRATI6), fd thatthe employer seks is diomisal forthe act ‘romisin charged agains hin otherwise, the notice ‘doesnot comply withthe rule (Magro Placement and ‘General Serces « Hernandez, GR. No, 136964, ly & 2007, 36 SCRA 48 see alo Mercury Drag Corporation 1 Serave GR No 16050, Mareh 10,200,484 SCRA {36 cling Magulng» Philppine Tuberculosis Scle, ‘Inc, GA. No, HS3B4, February 42005, 450 SCRA 463) 3. "Rensuuble opportunity” under the Om meant every ‘must acord 0 the employe equaly forbs defense. Ths 1 perio of atest ve () ealendar days rom recip of " iy the acvsaton agaist Rim, const 2 union ofa oF lage gather data and evidence, and deck defenses he wl rls aginst the complaint (King of Kings anspor, ne Momac, CR. No. 165208, une 28,2007 526 SCRA 116).SUGGESTED ANSVERS TO THE 2017 BAR EXAUNATIN -SUQGESTED ANSWERS TO THE 217 BAR BUBEATON 0 ‘Shestions nLABO8 0 SOCAL LEGITATON ‘UesTonS Asa wo SODA LEGISLATION o hea In such a css, the conduc of formal nearing reer here © ©40 SOGESTED ANGERS T0THE 2017 BAR XANNATON ‘QUESTIONS LABOR AND SOOM LESILATON. Marcel was the Vie President fr France and Adminiration and ‘member ofthe Board of Diectrs of Merefes Corporation. He brought 4 compa fr ileal suspension and legs dsm! apnint Mecenses ‘Conor, which move to dime he compli onthe round that he ‘ompaiatpralnedtothe judo ofthe RTC eto the controversy being lnracapeate based or his positon ne orporation, Marcel oateed et ead only been removedas Viee Pein for Finance ard Administ, tac as a member ofthe Beard of Dietors. He also ergued this positon ‘es a sed as among the oporate ofces in Mercedes Corporation's By Taw lthe rgument of Maree cores” Explain your answer (5%) SUGGESTED ANSWER ‘es, Marcel argument is corre The question whether the complaint fore dsmisal ld by Mares intrni Allright re consieed as pope: 2) SUGGESTED ANSWER. (2) Fate Only right which are patinonial in character cam be considered property Rights which ae nt patio su the efght to bert, the right to havo, family ight nd poles gh tana be consldored propery (©) Alesse carat rig case for iting of ie eipcing the propery hae eases. (0), SUGGESTED ANSWER oy Tae paint mast have gato ‘he raal paper In question or same neat tern for met he pes sion thereat so thatthe ation may be in preseipe(Avtcl #7667, ‘cist Code. SUGGESTED ALTERNATIVE ANSWER. (Fae. tthe property ase sa morale property hes «aan airplane ors sip, the lence evnnot ring the ston to elt le ‘The propery = subject mater of the ation fo que tle should Be re roperty en (Art. 77, NCC.nm SuecESTEO MES TOE ST AEX (Only the city or municipal! mayor can flea civil action o bats pi msec. (98) SUGGESTED ANSWER (©) Fale, Artie 103 ofthe New Civil Code provides that s prvate person may fle a acon on account of public nuances fi \Gespeclally lnjutous to imselt Thus, private person may fle a cil ‘tion fo abate publ ulsanee that especially infarc obi (Possession ofa movable ropery i ot when the locaton ofthe sid movable known tothe owner 29) SUGGESTED ANSWER 4) Fale Article $56 of the Chil Code provides thatthe escsian of morabls i vet deemed eto logs they remain {he contol of the posesio, even though for he Une beng he may ot ‘now thir whereabous. Possession ofa movable, therfore lst ly when posesar oes contol ver (©) Caoiuousnen-aparentasmets cn be sequied eter through itl by presen. 25) SUGGESTED ANSWER (0. Fale. Article 60 of the Civil Code provides that con tiesous and apparent easement ae aequied either by vise of «tie forty prescription o tn years. Continuous notapparen easements and ‘continuous one, wheter apparent or not, maybe acquired only by ‘rte fale (Art 622, NCC). An easement must be both continuous parent inorder tobe subject to aequbtion by preset SUGGESTED ANSHERS To THE 2017 AR EUNNATON m ‘uesronst ci uw xv Phare owned land tat bores on iver. After several yas he action ofthe water af he ver caused he depos of soll abd ineeased he ‘we of Placa propery by 200 square meters. (2) tf Plaarco wants ova the ins in ata, what wl be his egal basis for doing so? Expan your ase 20) SUGGESTED ANSWER (2) Platareo'slega bsis for omaing the Increase i area wold be by acreton under Arte 457 ofthe New Civil Code, wich the aeration ofl which gradually received from the ects joining the "The requis inorder that the reparian owner will own the sltvion depeste through the races of cert o @ aril or an-made, ah “he lana where the asretion fas place & adjacent the river bank In Pletaro's cae, ll hee requisites are took place over sever! year, was eaused bythe action ofthe river ad theland he owned borders river therefore, owns the erease nae (©) Onthectherhanifte iver dies wp may Pata ality ‘im argh of ownership ofthe dip riverbed? Explin your answer. ow SUGGESTED ANSWER (©) Rivers and thelr natural beds, being of public dominos (rile 8241) Cli Code), are not subject to eppropeation o accretion ‘The dried-ap riverbed remals tobe of public dmiion and Putares cannot vali lam wright ownership over k (Ruble Samos, GR. No. 160483, November 12,2012,rR SUGGESTED ANSWERS TO "HE 2017 BAR EXAANATON “UESHONS ce LAN evn sigue. ean agreement with ABC ak. To secure payment, Kevin reget his gitten! Rosey 40 excee « document cited "Continuing Guaranty Agreren™ whereby she expres agra! to be solidly lable fof abligatono Kevin, (Can ABC Bankprocseddwaly against Rosella upon Kevin's def ve without proceeding gut Kevin Bs? Exp your answer (9) SUGGESTED ANSWER Yes. Despite the designation of the contact a¢ a “Contin Guaranty Agresment" the terms of the document prea, Rosella ‘expreany agreed to besoldarily lable fr oigation of Kein According Solar wt the principal debi che contract called a suretship. A Sorety under a direct and prnary obligato tthe ret ad may be proceeded apne case the principal debtor das not pay a eis at insurer he debt Only gearantor, a sere ofthe pritipal debtors solvency, enjoys the beet xcasion [Noe tis the pane’ recommendation tht du cet shoul so be ten {o examinees who arene th sieyhip bing an accessory oath Principal dar shuld be an ledspesabie party wo the acon aga he Sure Xv verso operated a school aso Fry hi we sone ad Be oftheir ‘schoolmates fom ther Hower other schon, apd tuck. The parent of he five echoolmiter pa forthe serie, One moting, Por, he diver, 0 Shor con the way t school Dace he was ning an dove arose Srunmaoned ray costing. A the ang, Pio fs wearing earphones tecaute he loved to ear loud sic white diving. As crossed te ate tacks, a peeding PNR ran lll its bas wam Pri, ut he later dnt hear the hom ecauie of he ud mane The nie ly SUGGESTED ANSNERS TOTHE 207 BAR EXAINATON 73 schoo bus and the tla etd in he nat death of one of castes ventas younger su, “The pens fhe at sed oven for damages eon culpa oncacual aleging that Joven was a common carer, Pro for teins alge and the PNR oe dames based on el aqui, oveneio dee being common carer He insite a he bad aria the digene> of gwd father offi in sparing Porto, aiming tht heater ad o history meinen or etic beers ‘he ua ese, (9) Did hie oprsion ofthe schoo! bus service fr a lined clemele render Jovecio common cai? Expan your answer.) SUGGESTED ANSWER, (2) You Joven i common earir The tue tt fora common carrier is wot te quant or exent of de business aetually Iamuacted or the momber and charac ofthe conveyances wed i he ‘ct, ba whether the undertaking a part of de activity engaged in bythe carrer that he asl otto the general able as his business oF ceaption (Sponses Perna Spouses Zara, GX No 17917, August 39,2012, 679 SCRA 208,230 “vena operated the school bs 2 bases and not just a8 1 cnsal occupation be eadertok to carry the stadeas fm tablished Foste fo and from he ebok ad he ranspred the taden's for a fe, ‘ovenco was a common carr notwithstanding the ind cent (©) Inacontnes with your answer to te preceding question, str he dears ofan to be absvedy Jovenci,and he consequences thee Esplin your answer. (90) SUGGESTED ANSWER, 8) Joveni, as common carrier, must observe extra inary digenc nthe vince ove the gods nd forthe sfely ofthe passengers transported by them, acoring Co all dhe ireumstancs of acca. A comoran cari show cary the pasenges afl as fa | ‘man car and freight ca provide, sing the ums gence of Very fins persons a de vepard forall the ereumstanes”7 SICSESTED ANGERS 10 TH 2017 BAR DALANATION (©. __Assuming that he ality was a mina fonly 1S years of age whol vo eaming esac athe tine hi deth ects he was il ‘ent in igh hoo an thei nur sind ova nde a ‘nay posi be the lel and facil jets forthe wad fr of ‘ening cpu? Explain your answer. (5) SUGGESTED ANSWER, (0) Witcanbeshown that he decesed stedent mas ened na repatabeantitain and was able-bodied rir this death the ass foraward of os of earning capacity the prevaiag minim sage a thetime ofthe eis death. The computation a the hl ie expen ‘ey must be reckoned from the age of years, which the age when the hid would have graduated from ole and woul hve ban to mor, (Spouses Perera Spouses Zarate, GR: No S991, Aust 3, 2013), —22009- ‘TAXATION SMZ, ne, is a VATseginred enterprize eagged ithe gee onstnction tusins. HP lntaanl conract te services of SMZ, Ine, to consroct HP Interatnal’sftry bug net nthe Lagu “Techno Paka special conc zn HP neato reptre withthe Philipine Esnamic Zone Autor (FEZA) am scorns exon eer and, 35 sch enjoys Income tx oly pram wo the Spel Estee 'SMZ, Tey files an apyleaton wih the Busou of Inemal Revenue (BIR) forthe VAT zeoraing of is sale of serviets to HP Intemational Hower he BIR Geis SZ, ns appistion onthe pond ‘tat MP tterationa lead xy income ta olin: Is the BIR cones in denying SZ, ns appicaton? Expl your ames, ow SUGGESTED ANSWER No Allsles of goods, properties, and series made by a VATE rosistred supple from the Casts Territory Yo an eczane eserprie ‘Sle subjeto VA t ero erent (04) rae regardless {ype orcas of PEZA registration (Coral Bay Nel Corporaon¥ CIR, {GI No 190506, ne 13,2016, cag Commoner of Internal Revene ¥ Teshib Information Equipment Phils) nc, GR. No. 10186, Angi 9,205). Moreover, under Secon 108 (B)), of the 1997 NIRC at amended, servicer rendered to persons ener hose cremption luder spit laws effectively subjects the supply of such series 2 erent (0%) rate are conseed zrorated. Coaidering the law does ‘ot provide for any additonal quaiieation or dnqalieation, te BIR amtot dey the aplication onthe ground that HP Internation already ‘joys income tax bla8 ‘SUGGESTED ANGERS TO THE 2017 DAR EXALRATIN ‘QUESMONS W TAIATON ‘An administrative agency may not clare, alter or restric 9 provision of aw It eanat add tothe ruiromens provided by law. TO 0 constitutes lawman, which ls generally reserved for Congres (Sorta Secreay of Finance ea, CR. Nos 18450, 14508, 1HS3K, 15S234, January 24,2017), ALTERNATIVE ANSWER, ‘The BIR is wrong. Under Ses, 108) of the NIRC, the sae 1s etacvly aerated and there i 90 need to le am application Tor ‘eorating with the BIR. The B ‘ajoys inne tx hol ‘ozone enterprise by a supple from the customs territory ls considered ‘Shan cectvely eoated sale ofservisein view oftheexemptin enjoyed ‘by the Peza enterprise from indie tases. Wieck Crpration ia domes corpration engaged athe business of importing ening and weling petooum proucts During the eid fom Seprmber 1, 2014 fo December 3, 2014, Wreck Comperaton emperied 25 milion itr of et A-1 ition fel ad pid he exe taxes theron. Sevenyive percent (79) ofthe Ll velume of evan fel imported ‘rere seal sold to nteratonl erie of Philippine ad foreign repsties, forthe ute or consumption cutie of the Philippines nth pid ror «November I, 214 to December 1, 204. Wreck Corporation id not fast ‘no the ition camer the else ter paid onthe empraon af peoleum protic. ‘Op June 25,2015, Wreck Copration fie an sdiniatie eal for refund or msn of tox ced eta umountng athe exc xe ie id pid one inpertation of 25 milion ere of fet Ac aviation ul you wee the Commsine of neal Revenue, wil you grant Wreck Corporation's sdminisaive clam fo refund or sue ofa edt cant? Explain your answer (68) SUQGESTED ANSERE TO THE 207 BAR EXAANATON 7. ‘UesTONS nN SUGGESTED ANSWER Yes, but onl the exes tx which corresponds to the 75% ofthe total volume ofaviagonfelimported that were actualy so tthe ter tational caries. Wreck Corporation, asthe statutory taxpayer whos ‘iret able to pay the exes taxon ts petroleum products elied to sefondor ere ofthe excise tes I pl for petreum produce sed to International carver einer hv te ranted etpnom e ent of sid excise tx under Se 135 (0) ofthe NIRC (CIR Plpinar ‘She este Cooraion No. 840, Febuary 19, 2010, a Vandel, e's income wx retra for table yar 2015 showed sn overpayment eo exces eedible wielding tc nthe sot of 750,00. The company oped to cary ove the excess Income tx ces 1 tnx cei gin is gurl ico tox ables forthe neat sueceed- ling years For table year 2016, the company’ come tx ten showed tn overpayment dae exes ceil witioling tae Inthe smo of 110,00, which located th cary-ovr fom ye 2013 in he smount of 750,00 bose operation sted in et ss ence ter was oa plain for any tox ely. Ts tine, te company ped snd marked te box To beveinde" in respec ofthe taal amount of P,10,00, ‘Vandel sow les inh BIR a lai for refund of wntliaed overpayments 10,00 the clin merous? (6%) SUGGESTED ANSWER 'o,baton tothe extent of the amount of 700.00 which was ‘arie ver from yeor 2015 Scion 76 ofthe NIRC of 1997 leary tater: ‘Once the option to ary-over and apply the exes quartery income tx sguiat income ta ue forthe table quarters of the suceeding uable {ears ha beer made, uch option shal be considered rreverable fo hat {able period and application orcsh refundorisaanceofatarcreit7% [SUGGESTED ANSWERS TOTHE 2017 wR LAMINATION QUESTIONS ARATON certfente Section 76 express state that he option shall be consierd irrevocable for that table geod refering {othe pera comprising the succediag table yen Section oferther ‘ates that no application for cis refund or lance of tx credit ‘etieate shall be allowed therfore referring to that taxable period ‘comprising the succeciing table years (sinvorl Papers Palipine Corporation C1N, Gt No. 171766, Jay 29,2010), (nthe basis ofa warn of sete an tention ied he C- ‘esto of Custos forthe purpose of enforcing he Tr an Caos Cade, sorted brands of quran lgarees sido have been legally por ‘tothe Pippines wae seine fran a store opening na Freeport one The Sore ovner moved fr the gusta fhe waranton the yround tht he eto af Custos had na jursiction a enforce it mith be report zane ‘Should she motion to qush be game (3%) SUGGESTED ANSWER No, The treatment ofthe Fresport zone asx separate customs ‘eestor como completely diva the Goverament of rgh Ine ‘venelntheoperstians and management afsuekFreport especial when Patent vation of the customs and ax lave ave acoversd Aer Seton 6B2 of th Tarif nd Customs Cade vents exciv rial jor slction nthe Bureau of Castors ovr slzure nnd forfeit eases i he enforcement ofthe aif and eustoms laws gres Ca, La Hon. Tits 1 Nlunueva ef at, GR. No. 18150, September 10,2014 :UQQESTEDANEUERS TO THE 2017 BAR EXAUNATON n avesrons wT v (On Mas 30,2016, XLCo fla amine lai orf of wniind ing VAT for taxable year 2014, togeier wih sopping ‘documents XLCe, cared hts sale of generated power nd deivey of ‘etic capacity ws VAT sero-ated Due othe inactn afte Commisinst “tinal Revere (CHR), XL-Co fled wih he Court of Tas Appeals (CTA) {he flowing jul elas for fod Pura Cove Duele Tet Quer of 2014 arch 31,2016 2nd Quarer of2014 jos Se ond th uae of 2014 1s XLCCo’s chim for VAT ref inly Hed? Explain your anes, wo SUGGESTED ANSWER claims for VAT refond whisharesdminitrativein nature hae bon tel le, Thea eure that he adinistatve ‘him sboud be ed within no yearrom he end ofthe quarter when te {le was made (Se 112(A), IRC} henee the ing of te adnate infor refend on starch 3 208 covering ter quarters of 201% ome with the period prescribed byl ‘The same snot trv, however; 10 the jal claims. Only ‘he jul chin led om August 12, 2016 Is ney fled A provided by Section 112(0, 1997 NIRC, as amended, one ofthe condition fora jill iim ovetuadorredicunderthe VAT System scomplnce with the 120-30 day mandatory and jurditna periods Src compliance ‘ith te 120030 fay periods thus, eevtary for su lai to prosper (cit. San Rogue Power Corporation, GR. Nos. 18785, 196113 and een granted by Iw 120 days win hich to decide the taxpayer cm. Ten, 1 the Commbsion dos Sot atom the tnpayer' elim within he [30-day period, the taxpayer tay appeal to he CTA within 30 days from the expiration othe 12-5 ‘period Applying this tothe present eat, the 120 day trom the Bling of {he adsinsetve claim fllon ly 38,2016 XLCo, may the jae ‘nin fron Sy 39,2016 to August 77,2016 thes ony te Jolla ‘edo August 22086 has Deum inl ed& ‘SUGGESTED ANSE TOTHE217 BAR AMINATION Heoding the pronounce of th President th the wren tf fic condon ithe mevaplis was sign of economic progres te Congres acted Republic Act No. 10701, aig known aA Ae Imposing» Transport “uxon the Purch of rate Vice, ‘Under RA 1070, buyers of pee vehicles are eget pay a transport tax equlalent to SH of he taal purcase pce per vb pu ‘hated RA TOMO provides hate Land respon Ofc (LTO) al at accep or region anne vehi witht poof payment of te $Sotraspor tax RA 1070 fier provide that xising owners pina v= bce sal beregureto py tax equals 095 fhe at a market ‘nerf public uti vies andthe Govarsmen fm the coverge othe Stranapor ts ’ group of private vehicle owners sue on the ground tat te ws ncosinal or conraening te ExualPreeton Case of he Const Rule onthe eontinonliy and aiiy of RA 1070. (3%) SUGGESTED ANSWER RA 170i yal and conan. ny fs nt con ston bcs to tna ql and uniform 8 oer on Tac uote oe roi casino or porrne of ‘euaon (ilsh ameion Tocco Iie Camacho, CN. Tsk, Anas 2,30 S2SCRA SN ‘itty oan, tend oe of econ mesa nga bess objec of ain id weaata Sete ene ake bth pegs ad abi Un se cc toend cueaton og (be standart Tac ier abn a ot srry ee estate heel purpose aw apie ‘Sloat bh rset and oar conditions, 9684) the rrtgatt cgay wee hese beoagng othe same cs “n't hum Ba Rafe Nes. 1929 a 13409 SUGGESTED ANGVERS TO THE 017 BAR EXAENATON at AESTONS W AIAN Calvinia Psa was Pein Liensing ice (kan) ‘of Sta, Porta Realty Corporatio (SPRC). He invited the Regional Deter ‘ofthe Hoang snd Land Use Relay Boatd (HLURB) to Tunch tthe Solo Hotel in Quezon Cy odie the approval 9 PRC's pplieton fo developmen pet in conection witht subdivision development reject fn Pasig Cig, At breakfast the felling dy, Calvin met ronetv clan inverse to enter into jl vere wh SPRC fr he coosrctiono = ‘esta conto aC, Rza ‘Calva ned expanses fr th neh andeeakfat mocngs chad vit Repel Destro HLURB andthe prsgectivecet, pete “Toe expenses were dlysyppored ty offal recep ued hs ae At moat’ end he requested the reimbursement ois expenses, and SPRC ‘aod hs equ, (0) Can SPRC cin an alowable deduction for Be expenses ‘incur by Calvi? Exp your sae (2.5%) SUGGESTED ANSWER (@)_SPRC cannot aim asa deduction the amous spent or tunch inthe meeting with the Regional Director of HLURS. Whe the ex ens busines connected, he same snot allowed ax deduction because Iwas ncueed aan indre puyment oa goverament offical which nl nly amounts oa volaton a the A Sut ao consttates bribes kickbacks and simiar (9 @NIRO) ‘Wit espect, however tothe amount peat or beaks witha etvecen the sane deduct rom yrs income ofSPRC. The © complies with he requirements for deduct, namely) the Se mus be ordinary and necessary (8) st have Bee Pld oF ring the aanbl yen, () mast bave Been pal er incared gon the trade or busines ofthe taxpayer and () ems be hy receipts, records or other pertinent papers (CIR General Pils), Ine, Gk. No 143672, Ap 42003, 01 SCRA SS, 5). Past (1,0) of the 197 NIRC, a8 amended, ds mot equ tha in hor fa resp oaks ad 2erergccton olson oh expense en ete2 _SUEGESTEDANS/ERS TOT 2017 OAR AUNATION SURGESTED ANSWERS 1 THE 217 BAREXAANATIN 83 LESIONS IN AUAON (GeESTONS IN TABATON by Cabin rom SPRC sb 20187ea SUGGESTED ANSVERS TO TH 207 BAR EXAMINATION SUOGESTED ANGERS TO THE 2017 AR EXANATION 8 “QUESTIONS In TAXATION Aavestons Navan i x Ramon the compar of Vanage Pot88 _VOGESTED ANSWERS TO THE 2017 BAR EXAUNATIN “cOESTONS N TAXATN (Hae eight of he Goverment oases and calc e- cieny tes fm Vang Pit, Ie fete year 2012 prescribed? Explain your answe. 05) SUGGESTED ANSWER (6) Yea the final assessment was sued beyond the tree ear preserptiv period to make an sessment Seton 20,1997 NIRC, Semended). The Waiver did not exend the three-year prescriptive pe "od snceH wat enected fer the expiration of such period. “The Bourd of Diels of Sano Corporation, 2 company primary engngat in th busines of marktng ad dstrbung pest contol products proved the poral esaton of Ke commercial operations, resing in the parton of 32 rpslar employee, Only haf ote affected employees wee ified ofthe bud reson, ule on he axa ofthe separation py and inden that will te received bythe affected employees ste res of tc separation fom servis Explain your answer 08) SUGGESTED ANSWER esa be tscexempt, Section 30(8)(6(0) ofthe 1997 NIRC, 25 leds provides tat any amount received y an ofcial or employee tr by hs hire from the employer ats consequence of separation of ch Stic or employee frm the service ofthe employer becatse of det, Sickness ov ether phyla! isbilty or for any eae beyond the contra tthe suid oficial or employee shall be exempt from taxation. SUGGESTED NONERS TOTHE 17 BAR ANNAN 7 ‘SuesToNs woACATON xi (n September 17,2015, Data Realy fc, a veal-eate capuation uly rpnznd and exising under Philippine iw ol to Jenny Veruca ‘amin unt at Free doe Residences fn Mabon Cy with an ae of 2.31 square mee fa contact rc of 421500. The condmini oni ad ‘Goel vale amoung to F2.377,000 ad fh make vale soutng 1 ss0.00 (8) thereon sujet vale added ta and doce: tary stamp to? Expanyoursorwer CO) SUGGESTED ANSWER () Yes. As tothe VAT Habit sale of real properties eld primarily forsale fo customer or held fr lee nthe orinay course of trade or business i subject to VAT (Seton 106 (A)I(a 1997 MIRC, ‘amended forther the contract ris which a the {othe zonal vale and the fir market vale, beyond fhe ranean threshold amount fr reset dwellings thereby making he sale ran ‘clon Table A othe DST laity, ‘trea property are Ihkevs subject to DST (Scion 196, 1997 NRC, at amendecy ©) Would your newer be thse if the propety wa sll by ‘hak ina foeclosure sale? Explain your answer (96) SUGGESTED ANSWER (©) _ No the sale made bythe bank is exempt from VAT. Banks re exempt trom VAT because they ae subject o percentage tax Lunde Tite Vof the NIRC (Section 109 ia ration to Seen 121 of 1997 IIRC, as amended), These, auveyanesof real property are generally subject, IRC).28 SUGGESTED ANGERS TO HE 207 AR AMATO ‘0deSTeD NHR 10 THE 217 AR ENON 29 ‘QUESTIONS MAEM ixuesrons w AION xi90 SUGGESTED ANGERS TOTHE ZT BAR EXAANATON Casimir died on June 19,2017, ster thee weks of concent ue 6 an unsicesfltveruanpat Fo er concent she ha inured Ssuhunll mds expense taste anced trough sonal lar cred by mariage on her eal proper, Her hase sil nthe ees of ak gate often cine phe ey, (2) Ae md expen, po ay ad mags incur cs eam hp a oo Om) vo SUGGESTED ANSWER, (2) Yessubjectio certain condlonsset hy the NIRC.AS or he media expenses they must be eure within one year fom death wheter pid or unpaid aod the amount mast nt exceed P3000. AS fF the personalians, is regute hatte loan document ust be notarized tnd if ncorred within thee years from date of death the exetor ee dminitrator stall submits satement sowing te doasiion of the Droceds of the loan. AS tothe morgage, Fequlred thatthe far Sarket value of Casiita's intrest sid property. undiminished by sch mortgage orindebtednts, i ncladed the value ofthe pros eta ‘The clains for persona uns and mortgages mast have been contracted soma fide an fran adequate considers honey oF ones Worth (Section 85,1997 NIRC, ssamendet) ©) May the eis of Casini le the esate tax ret an pay the euespoalag ext ay beyond December 19, 2017, without inn, incest and surcharge Explain your answer 0%) SUGGESTED ANSWER (0) The bei may le the stat tax return beyond Dacem= ‘er 19,2017 as longs they eda request fora resonable extension nt ‘sceding 30 day Onc the reqs for extension has een granted td the Fearn fled within the extended period following the “pay--yoe- Sle procedure only the near eended payment mabe imposed ‘SUGGESTED ANGERS TOTHE017 AR EXHENATIN ot Gueshonsi AsADON ‘net mot he surcharge; Interest and surcharge, hovever may be inp pon lure fhe heist fe snd pay the estate ax inthe extended riod granted bythe CIR (Seton 244) and 249 (D), 1997 NIRC, mended), ‘Section 91,00 the ther hand allows forthe extension of ine ay the esate tax du, for period wot exceeding five 3) ears incase the Site sel through the courts, a two Q) years in case the ete Seed extra amestenson granted, thelntret on extended Iymen may be imposed: Fhe Commbstoner may require the exer, radminiscver or BeneBsiary, asthe eave maybe (0 furnish 3 bond man amount wotenceding dable Ge mount a the ax and with sch Scien the Commission dems necessary, conditioned upc the pay ‘ent o estan aserdance withthe ems ofthe extension. “The IR sessed te Sabuyan Wate Distr (BWD) with eiceney Income ies sting 5 mln inks fees and chars. ‘The BWD dptd the ascent and argued hat twas a wholly-owned overomen ny prfonirg enema goverment fncon, However the ‘The BW fed a pon fer bron he Ofc of te Serey tatice pasta to Sets 661071, Chapter 1, Book V ofthe Admin {tive Code of 1987 to aa the denial fs pros, and o sek the ope Inerprettion of Seton 328) ) ofthe Tox Code tat exceed fom rss [Meme the neue derived by the Coverest or split sublvsons, The Secretary of asc ends deitondelarig te BWD exept rom the payment o income "The Cummisionar of eral Revenue apse tothe CTA. he tote ground the Seren of ute tad no jsetion to review the essen ofthe BIR Ist peal merous? Explain yoor answer (4%) SUGGESTED ANSWER ‘Nou Section 7a) of RA No. 125, amended by RA 9282 em rmerats the CTA exluave appellate jarsiton to review by appeal Certain deco or actin but not that of Seeretary of Sestee92 ‘SUGGESTED AUSERS TOTHE207 BAR AMINATION Moreover, despite the ase involves the CIR’ astern, Now «ve Seton Ha) ofthe satel, special the phrase “other matters fring under the Nato ther ows administered by the Boren of ater 1° must Be Fed together with words preceding 1 Revense n faxes involving dispute assessment, x following the satitory eon ‘struction prinipeof dsdom goers (CHR x CTA (Second Dion) end ‘Peiron Corporation, GX. No. 20783, Sly 15,205) ALTERNATIVE ANSWER ‘Yes GOCCs ate tasable ents and they ae ot crempe from BIR assessment aod eoletn, uals thr eharter or tela eating ‘hem provides otherwise. Henc, i exe of tox depute between a GOCE and the BIR, the controversy i cogniabie and appeal the CTA, ‘The sue canst be escved bythe DO! 'PD2i2 i general la that dal ith diinktratve etement or adjudication of espe, aims aed controversies helen 0 amo, fovernment oes, ageacics and insrumetaitis, Including GOCCs, whereas, RA T25 (he law eventing CTA) fra special av. A spel Drevais vera general aw The fact tht PD 24 the more rset Dt no siniteane, CTA has jriadiction when GOCE essed thes Disptes, elas, and controversy fling ander RA 1126, eventhough Solely among government ocr, agencies, and Instrumentals, Icha Ing GOCCS, remain seely nthe exclusive Jordon othe CT [Noe (On teense nat covered ty the 2017 Bar Syllabus) The Supreme Court held Commision normal Revo Seca ofa ‘ie and PAGCOR (GR. No. 177387, Novebe 9,201) thatthe Seerstary of astice doesnot hve ay juaicion we reviw ay disputed stems ‘sing under the Ti Code. The Secretary f Jase shows have dexsted from dealing wit the ption ad ered te mater othe Court of Tae ‘Appeals hatha jurisdiction oer appeals on he decisions ofthe BIR in ax ssersment ese). SUGGESTED ANSWERS TO THE 207 AR EXAMNATIN 83 San ua Unive is noc, non-profit dacational inion lvowns apie eland i Cloean City on whch tee 2c shea Belding tod Two ofthe bulge re develo lasroons, labors, 4 canter, a Bookstore, and ainstaive offces. Te Wid bung i reserved as donmtery fr sia ales wha ae pated scolaships Fra sven ace ya Tn 2017, San Juan Unversity eamed incre fom ton fees sb frm leasing 9 portion of ts premises to vais eanceninsirs of fod, books and choo spies (2) Cantte City Tear of Caloean Ci clet eprops ‘tas ot he lal and building ofS Joan Univesity Explain your answer oo SUGGESTED ANSWER, (2) Ye, bat only on the lesed portion, Atle XIV, ston 49) ofthe 1987 Consttaton provides tat the assets ofa now-stoc, nom prot education! institution sal be exempt from tues and utes only Irene same are used actualy, direct an exclusively for elcational purposes The tot of exemption from taxation these of he papery fe Purposes menixedia the Cotton The lensed portian othe bling bray be subject loreal property ax since rach Ine I for conieria purposes, there, removes the ane rom the property tas exemption ‘ranted under he Constaion (CHR » De LaSalle Unies, Ine, Gi Nos. 196886, 19651, 198941, November 8, 2019, (©) tothe came cad by San Joan University for the yar 2017 sbjet to ame x? Exp your newer (8) SUGGESTED ANSWER, (©) Nouprovided tat he reveesare ase actly ety excanvly or eaueatonlparpons ss provided wader Artie XING Section 4G) of the 1987 Consttuton. Tae requisites Tor aatig the (ax exemplion mer Artie XIV Seton 4 (3) are as flows (1 theGESTED NERS TO THEN OAR CUNATON & ‘QUESTIONS IN TAXATION. onstock, non-profit educational seks fo be exempted fom svely fr edentional parpoes thes, so long te rea evenves may be exempta 8 (Cine De La Sale Universi, GH. Ns. 196596, 1884, 19884, November, 2016. xvi (@_Disingush outright smug flor chia maging ) ‘SUGGESTED ANSWER nth complete casts prescribed ithout being seared by customs or other ‘suocesrp ausuens rom ax examen os © Ds ish compromise tha abaomon a xs. (9) SUGGESTED ANSWER, ©) Acompromite of there ist reasonable dub a othe vallty xix (CMI Schoo. ne, a non-stae, nonprofit copration, nse es sofia m donors tat Sect 997 NIRC, as amended, Considering that SLE University is ‘anoosioc,non-proiSUGGESTED ANGERS TO THE 27 BAR EXMANATON a ‘QUESTONS IN TANATON (©) HSLCUnivrsiy ter sts te thee pres ofl and o Purgod Supermarket Ine tek eapeion, will SLC Univesity be able for eapl pine x? Espn your ater (3%) SUGGESTED ANSWER. () Yeu Thegain presimedtohave deen ealzedun the sae ‘exchange o disposi of lands andlor buildings which are nt actly ‘edi the Dasnes ofa crporaton andre treated a cpital asses hall eset to capi gains tu (Section 27DYS, 1997 NIRG, as amend). Tikewse, Section 30 of the NIRC sujet o Income ts (epital gas fax al income from properties, real 0 persona, or sn any activity once for prof, rrerpetve of the dsposit of he income, by a farcnemps carports. (©) HISUC University donates he tee pels ole andi favor ofthe Mitty of Capo, Nac Eel, wll SLC University eI tht for donee’ tx? Expanyour answer (25%) SUGGESTED ANSWER (© No. Gine made by resident to any of the National Government sal be erempt rom donor's tax (Section ToIcaya}, 1997 NIRC, as amends) 000 ‘COMMERCIAL LAW Able Tinber Co, (ATC) has been engage in thelogsag buses in sabels To sear neat sipments of logs ob rasp bs Ando Shipping Co, ATC purchases marine policy wih tn alk proviso, Bechse ofa ong phon then iting Nore Lz the etl snk the shipment oflogs was teal os ATC fd a, bt hier desig the clam o several grounds amet: (1) he vest ha at en eave, (the verse crew fd laced cuca ising) the improper luli {Ft los on only oe sd ofthe vessel had Te tthe titng of the ship tha side during the staemy voyage and (the exremely bad wether ad bro a foitous event ATC noi secs your lea vice ono if sai was stn ble What your adie? Explain your newer). SUGGESTED ANSWER ATC's im i susaiableTheall isk pole that ATC procared from the insurer insures against al care of concsvable las of damage ‘tcept when the sso dane was due to frau or ftetonal eco ‘duce commited by ATE (7 New Mor Inernatonal Detlopment NYE "ilapan shiping Corporation, CR. Na. 1468, August 26,2011) The rounds of denial that the insurer lavahe re oot due 10 the fraud cain mibondct of te suet ALTERNATIVE ANSWER ‘The cai of Absolute Timber Company tat the extreme bad Tis Toss was not de tothe perso the se, bat pets ofthe sip (anil ‘Stermship Companys Abduthaman, Ge No.1-9834, September 29,196, 100 Phil 2). ATC's negligence abo bars it rom invoking the defense of